CHEAP telephone calls plus a clever scheme to raise money for charity are the ideas behind a new firm at the Oxford Science Park.

Equitalk.co.uk uses Web technology to support a low-cost telephone service. Managing director John Burton explained that customers apply on-line and immediately start to save money while still retaining BT's basic services.

Charity benefits while customers talk because the company offers commission to anyone introducing more customers. Under the scheme five per cent of the cost of a new customer's calls will be paid to a charity of the referrer's choice.

Mr Burton says that several firms offer low-cost calls, but none has yet recognised the charity potential.

Equitalk has started up with the backing of the Oxford Technology Venture Trust. The technical framework has been outsourced to partners that include Omnicom, based in Reading, and cash-collection services are provided by Barclays Merchant Services.

Mr Burton added: "We aim to make the whole business of choosing a telephone company much easier by offering a service that is cheap, easy to use and to refer."