Competition for business customers is heating up thanks to a new fixed line service launched by Vodafone today.

With massive discounts on line rental and calling, Vodafone Business Fixed Line is the company's first foray into providing land-line services for businesses.

The move signals Vodafone is serious about tackling the total communications markets says Kursten Shalfoon, Vodafone GM of Products and Services.

"We have been saying for some time now that the business market has been woefully underserved. We took our first steps to address this in April with a fixed line tolls package. Now we can meet all business communications needs – whether mobile, fixed line or mobile broadband."

Shalfoon says Vodafone Business Fixed Line offers savings of up to 60%* on calls to Vodafone mobiles and a 20% discount on fixed line rental for customers who sign up to a 12 month term.

"Customers tell us that they want a relationship with a single communications company with a brand that they know and trust. Thats Vodafone."

It's free to switch to a Vodafone Business Fixed Line and customers can keep their existing phone number.

Ihug, Vodafones land-line provider, will run the service on its network.

*60% saving is based on Vodafone Business Tolls Plus Pricing Plan compared to Telecom Business Time plan.