Abstract: The volume of a loudspeaker in a telephone is automatically adjusted according to the ambient noise at the telephone location. During a predetermined time window which exists during the initial period of a telephone call, the ambient noise is measured, and the volume of the loudspeaker adjusted accordingly. For example, the time period may exist between the time when the telephone goes off-hook, until the time when the handset is placed near the ear. Adjusting the ambient noise during this period has the advantage of not having to filter out the user's speech, as would be the case when measuring the ambient noise while the user is speaking. Furthermore, there is no requirement for circuitry which detects gaps in speech.