A communications company that had to reduce its workforce by more than half following the September 11 terrorist attacks in the US is hoping that a new mobile phone sim card will turn its fortunes around.

Hirefone, which is based in York, has been established for 13 years as a mobile phone rental company, providing cheaper phone deals for people travelling abroad on business.

The company has launched its services to the wider public, providing a pay-as-you-go sim card, GO-SIM, that could help travellers and holidaymakers save 90 per cent on their phone bills while overseas.

Company founder and managing director David Agar said: "Our Hirefone business alerted us to the issues faced by travellers using mobile phones abroad - technology has developed quickly, but the high costs of using your UK number abroad have virtually stayed static.

"With the GO-SIM service, we will be able to pass on the lowest possible call costs, which will mean massive savings for travellers who would otherwise face a much bigger bill when they arrived home."

The system allows travellers to make local rate calls in their destination country, instead of paying high roaming charges set by mobile phone networks.

Depending on their travel itinerary, customers can choose from a single destination, or a global roaming sim card, which covers more than 110 countries.

Hirefone has been providing international phone rental services to business customers since it was set up in 1992. It started with only two members of staff. That increased to 45 before the attack on the US in 2001.

Mr Agar said: "When 9/11 happened...the number of people travelling abroad fell dramatically."

Hirefone, which also has bases in Germany and the US, suffered as a result and the company had to be restructured.

The GO-SIM technology took a year to develop, with funding from Business Link York and North Yorkshire.