Phone bills price cut looks likely

British Telecom is likely today to declare a cut in telephone bills for household and business customers, following pressure from the industry watchdog Oftel.

BT said last night that cuts would be likely as a result of a new formula on which its prices will be based. That formula presently restricts increases to inflation minus 6.25 per cent. If Oftel is successful, it will be further restricted to inflation minus 7.5 per cent. Inflation is running at about 4 per cent.