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BT has hit back at claims that its telco services to business customers are dearer than its rivals.

The UK's monster telco reckons its BT Business Plan tariff, launched earlier this year, provides average savings of 12 per cent compared to rival services - a saving of £144 million against the average competitors' best rates, said the telco.

Quoting research from Deloitte & Touche the UK's dominant telco insisted that its telco services for businesses were cheaper than its rivals such as ntl, Telewest, Energis and Cable & Wireless.

In a bid to underline its commitment to the business sector, BT announced today that it has cut the cost of calling the USA to a maximum of 10p for up to an hour. This announcement coincided with news that BT has now signed up 100,000 punters to its BT Business Plan tariff since it was launched in January.

In a statement BT Retail chief exec Pierre Danon said: "Our rivals in the business market had better watch out. BT is fighting back and we intend to show businesses that we are nowhere near as expensive as our rivals claim."

He insisted that the Deloitte & Touche study showed that BT was "right up there with the cheapest".

Earlier this year BT announced that it was capping the cost of phone calls for businesses as part of a move to overhaul call tariffs. ®

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