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Taranaki in Line for Phone-Bill Cutter

Posted on: Wednesday, 28 September 2005, 15:00 CDT

By SUTTON, Michelle

TARANAKI will be offered a new phone service from Woosh Wireless that is set to undercut giant Telecom and halve phone bills.

Woosh's phone service costs between $20 and $25 a month, with free local calling, voice mail, caller display and number withhold.

A Telecom home line costs $39.85 with the same additional services adding about $9.50.

Auckland-based Woosh is offering the phone line to customers taking a broadband connection. It uses cellphone towers to reach 70% of Auckland and parts of Wellington, Christchurch and Southland.

Yesterday Woosh confirmed Taranaki is included in its business plan, although the service will not be available this year.

"It (Taranaki) is a very good fit for our market," said Sandra Geange, Woosh general manager of marketing and sales.

She was unable to give a definite date for connection, but said New Plymouth would be the first centre in Taranaki included on its network.

The timing of that would depend on progress made in expanding coverage to existing areas, she said. Woosh would move into new areas such as Hamilton and Dunedin early next year.

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

Woosh customers 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.

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. Customers converting from Telecom or Clear can keep their phone numbers.

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

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

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

Woosh chief executive Bob Smith said the company had done extensive testing to make sure the service was reliable, after earlier technical problems.

Woosh is owned by venture capital investors in New Zealand, the United States and the Middle East. New Zealand investors include the Todd Family, Stephen Tindall and ACC, and it has raised more than $100 million in equity in the last few years.


Source: Daily News; New Plymouth, New Zealand

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