By Maggie Hartford The Phone Co-op, based in Chipping Norton, has taken over a rival firm.

It has bought the telecoms business of Birmingham-based First Call Direct, a move that is expected to add 15 per cent to the Phone Co-op's call volumes.

Customers who will transfer include a large number of the UK's sub-post offices.

Chief executive Vivian Woodell said: "This is a good deal for everyone.

"To customers who transfer to us we shall offer reductions in call rates and a share of future profit distributions if they become members of The Phone Co-op.

"At the same time, the extra business will further increase our buying power with carriers and this means a better deal for all our customers and members."

As a co-operative owned by its customer members, The Phone Co-op distributes surplus profits to members and to a trust fund set up to encourage other co-operative ventures.

Despite increased competition and widespread price deflation in the telecommunications market, it recently reported a ten-fold increase in profitability and recommended its first dividend distribution.

Its offices in Chipping Norton last week played host to the Co-operative Commission, whose members met local Co-op leaders as part of a nationwide tour to explain its report The Co-operative Advantage.

The commission concluded that co-opera- tives' unique structures gave them a strong potential advantage over conventional businesses.

The report argues that by making the most of this advantage, co-operative businesses can achieve commercial success, which will help strengthen their social goals.