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Woosh Launches Phone Service; CUT THE CABLE

Posted on: Thursday, 15 September 2005, 21:00 CDT

Auckland firm Woosh has cut the phone cable and undercut giant Telecom in launching a wireless home phone service.

The high-speed internet provider is offering a phone line from as little as $20, when customers take a broadband connection with them. This undercuts Telecom by as much as $15 on competing plans.

Chief executive Bob Smith said: "It's a key milestone for us as a company, and a key milestone for the industry. It's a mass market alternative to (Telecom's network)."

Woosh's service uses a network of cellphone towers to reach 70 per cent of Auckland, and parts of Wellington, Christchurch and Southland. In Wellington, the central city is covered alongside the eastern suburbs, and parts of the western suburbs and the Hutt Valley.

The phone service will be available first in Auckland, with the rest of the country serviced "within a couple of months", Smith said.

The phone uses Voice over Internet Protocol (VoIP) technology, basically a secure Internet line, so Woosh customers do not need to connect to the Telecom outlet in their home.

Woosh customers will need a $99 "gateway" to plug into their Internet modem, which will connect their ordinary home phone to the Woosh network. Or for $9.95 they can get a software phone and make calls directly through their laptop or PC.

Customers will get free local calling, voicemail and caller, with a second line costing $14.95. All national toll calls and international toll calls to 35 countries are a flat rate of 10 cents, with no differentiation between home and business rates.

People who have tolls with companies such as TelstraClear will not be able to access this with Woosh, Smith said. But those switching home phones would be able to keep their number.

Woosh has an interconnection agreement with Telecom, who provide access to directory and emergency services, and also provide the tolls.

However, one drawback is that Woosh's phone relies on a power source, so users would not be able to make phone calls in a power cut.

Smith said: "We think our customer base will predominantly have cellphones as well."

In July Woosh said it had 15,000 customers and a broadband market share of 30% in the places where it was offered.

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High-speed Internet provider Woosh Wireless has undercut Telecom for a package that includes phone, tolls and broadband.

CUT THE CABLE

.............................TELECOM...............WOOSH

256kbps.................... --......................$54.95

200Mb data

256kbps..................$79.80................$64.95

1GB data

1Mbps.....................$84.80.....................--

1GB data

256kbps...................$89.80.................$69.9

3GB data

* An extra phone line for Woosh is $14.95.

* All national and most international toll calls are a flat rate of 10 cents a minute.

* There is no differentiation between residential and business customers.

Source: Press, The; Christchurch, New Zealand

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