Pay as you go phone service

The British Post Office is teaming up with Tele2 to offer U.K. phone users a discount pay-as-you-go long distance and international call service.

Unlike existing discount prepaid long distance, the i-Hear service will work on a cash payment basis, rather than requiring calling or debit/credit cards.

To use the discount calls service, users will need to prefix their called numbers with a short access code.

Post office spokeswoman Sally Hopkins told Newsbytes that the discount service is facilitated through a linkup with Tele2, the pan-European telecoms carrier.

"We've been selling prepaid calling cards since mid-October, but, from next Monday, the 19th, British Telecom and Kingston phone line users will be able to sign up for a prepaid account, as well as top up the account, in cash, at their local Post Office," she said.

There are no plans at the moment for the post office to offer unbundled local loop services, she added.

This is the first time that the post office has offered telephony services since its British Telecom operation - now IPO-ed - was spun off in 1981.

Tele2 says it will be providing the telecommunications expertise and infrastructure, while the post office will supply its branding and an 18,000-branch distribution network.

The post office says that 9 out of 10 U.K. residents live within 1 mile of a branch and 28 million people visit branches each week.

Tele2's Web site is at http://www.tele2.com .

Reported by Newsbytes.com, http://www.newsbytes.com .

08:17 CST

(20011115/Press Contact: Lars-Johan Jarnheimer, Tele2 +46-8562-64000; Sally Hopkins, Post Office +44-20-7250-2468 /WIRES TELECOM, BUSINESS/)