BT will lean on its home phone customers as it staggers out of the recession with a 10 per cent rise in daytime call rates.

From the beginning of October the cost of connecting a call will rise from 9.9 pence to 10.9 pence, with charges for each subsequent minute rising from 5.9 pence to 6.4 pence.

BT Retail is writing to subscribers this week to warn of the hike. They will be given the option of partly avoiding the higher charges by paying a year's line rental up front.

The firm said half of its customers won't be affected by higher call rates, as they subscribe to inclusive daytime packages.

After the mismanagement of Global Services inflicted a heavy loss on BT two years ago, the group returned to profit last year, earning £1bn. ®

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• BT sneaks in 'stealth price rise' (5 January 2005)