By CHRIS BARTON
Hospitality company Wilson Neill has formed a joint venture with telecommunications giant Siemens, which will result in voice traffic carried over Wilson Neill's wireless data network.
The deal has the potential to deliver significant telecommunication cost savings for businesses because it cuts out Telecom's 4c per minute local business
call charge.
The chief executive of Wilson Neill subsidiary Radionet, Leicester Chatfield, said voice communications costs for businesses using the wireless network could be as low as half a cent a minute.
Depending on the customers' data and internet usage of Radionet, voice costs could be fixed at around $100 a month.
The voice capability is supplied by Siemens' Hicom Xpress private communications exchanges (PCX) installed at business premises by TNS Cablecraft and costing between $5000 and $50,000, depending on the number of users. The PCX routes phone calls over Radionet and will be available to existing customers starting in June. Trials are also under way to link with telecommunications carrier WorldxChange for local and international toll calls.
Radionet and sister company Onthenet were acquired by Wilson Neill for 75 million in shares worth about $11.1 million in February.
Using cashflow from its Cobb and Co franchises and other hospitality businesses, the company is spending about $2 million this year expanding Radionet's mainly Auckland network nationwide. Radionet is also about to open offices in Australia.
Wilson Neill chairman Trevor Mason said the company had appointed Cavill White as its lead broker and would be making a formal application to the Stock Exchange for relisting on the main board within the next two weeks. That should see the company return to a main board listing in two months.
Wilson Neill, with about 7000 shareholders, has seen significant trading activity on the unlisted market in recent months, with shares going as low as 8c and as high as 19c.
The shares yesterday were at 14c, giving the company a market capitalisation of just under $60 million.
