An Oxford based telephone service provider is challenging BT's claims of being cheaper than its rivals by offering low telephone call charges.

Based at the Oxford Science Park and backed by the Oxford Technology Venture Capital Trust, Equitalk.co.uk aims to become a major influence on the telecoms market.

Chief executive John Burton said: "It is our ability to harness the power of the Internet which has enabled us to minimise overheads and offer our customers such cheap, and the possibility of free, calls.

"While BT's standard tariff for local calls represent good value, our national and international rates are highly competitive against other providers."