British Gas group Centrica has expanded its telecoms portfolio after buying up rival Telco for £43 million.

Centrica, which already offers telecoms services under the One.Tel and British Gas Communications brands, said the move would add another 250,000 customers to its 1.5 million accounts.

The acquisition will boost its presence in the business-to-business market and allow it to launch voice-over internet services - which let people use the internet as a telephone.

It will also allow Centrica to enter the international pre-paid phone card market.