O2 Officially Launches Home Phone Package

O2 has now officially rolled out its home phone bundle which offers line rental and fixed line services at an affordable price that's cheaper than BT's in a bid to lure new customers and keep existing ones happy.

Two packages are on offer, both carrying a 12 month minimum contract. The cheaper one at £9.50 per month comes with unlimited evening and weekend calls to 01, 02 and 03 UK landlines.

For an additional £3, you get unlimited calls to UK landlines, 0845, 0870 and international calls to more than 20 countries altogether, with a fair usage policy attached to the service.

Note that the prices are for existing O2 broadband customers and you will be charged an additional £5 on both packages otherwise. Furthermore, you will need to be in O2's unbundled area to benefit from these prices.

This means that in theory, O2 can offer an unlimited up to 8Mbps line with line rental for as little as £17 per month. In comparison, BT's most affordable "Talk and Surf" package comes in at slightly more than £23 per month with 10GB monthly cap.

Sally Cowdry, UK marketing director for O2, said in a statement that "This is the most important launch for us in the home space since we entered the broadband market and is part of our strategy to evolve beyond mobile to a leading connectivity brand."

Be Broadband which is also owned by Telefonica has announced that it will be looking into something comparable soon. Another O2 customer, Tesco, has started to sell similar already.