BT to dabble with region payphone cuts

BT has confirmed it is seeking to introduce variable pricing in an effort to revive the UK's moribund payphones.

The telco is hoping to persuade regulator Ofcom to allow it to experiment with varying call rates depending on the location of the phone boxes in the UK.

BT said it will now be able to explore new pricing options with "minimal commercial risk". The telco added that where tariffs prove successful, they will be adopted nationwide.

Ofcom is likely to agree to the proposals on the proviso that as soon as each pricing trial is completed, call costs are returned to their previous levels, according a report in The Times.

The majority of phone boxes in the UK are now no longer profitable following the advent of the mobile phone. Previous attempts to turn around their fortunes have included the inclusion of advertising on the kiosks and turning some phone booths into cash machine housings or internet kiosks.