UK internet telephony player Mobiboo launched a flat rate all you can eat tariff on Wednesday, allowing subscribers to make unlimited calls to UK landlines.

The new tariff is £39.95 per year for home users or £89.95 per year for business users and allows subscribers to make unlimited calls for 12 months to any 01 or 02 UK landlines, to freephone 0800 numbers, and to tovo mobile phones.

The tovo is Mobiboo’s wifi-enabled VoIP phone, which allows users to make calls at home or at a wifi hotspot. In November, Mobiboo struck a deal with supermarket chain Tesco to sell its tovo wireless internet phone in stores.

Calls to other destinations, such as mobile phones and international locations will continue to be charged for at Mobiboo’s current rates, such as £0.01 per minute to the US and £0.02 per minute to Hong Kong.

Mobiboo is a VoIP application similar to Skype, available as either a PC-based softphone or a wifi handset.

Wednesday’s news means Mobiboo has beaten Skype to the punch in Europe with the launch of its unlimited offering. Skype made a similar move in the US earlier this month, charging users $30 per year for unlimited calls to landline and mobile phones in the US and Canada.