KEY POINTS:
Rural phone users will soon be able to cut the line with Telecom and go wireless for phone services.
Phone companies WorldxChange and BayCity Communications have announced plans to offer customers outside metropolitan areas the option to go wireless for phone services in addition to existing wireless broadband offerings.
Many rural customers cannot receive adequate broadband services via copper phone lines because they live too far from local telephone exchanges.
WorldxChange will be the first to offer wireless voice calling with voice-over-internet protocol [VoIP] technology, launching the service next month using the radio transmission network of state-owned broadcast and telecommunications operator Kordia.
WorldxChange chief executive Cecil Alexander said customers would get all the regular phone services such as free local calling, voice mail and call waiting.
The broadband and phone service is delivered via "line-of-sight" technology covering an area up to 50km from Kordia's network of broadcast towers.
It is estimated the service will be available to 600,000 residential and business customers.
Kordia chief executive Geoff Hunt said its network had the capacity to deliver broadband speeds of up to 1.2 Mbps to 20,000 customers but could be extended as more customers joined.
He said it was an under-used network with 2000 customers only signed up to its Extend wireless broadband service via reselling deals with Telecom, BayCity Communications and Iconz.
Hunt said the agreement with Telecom, which has the bulk of Extend's customers, had another 12 months to run.
"WorldxChange has got the ability to provide voice-over IP, so suddenly for rural people, if they're on the Extend connection connecting via WorldxChange, they've got the possibility of not just having broadband for data, but for voice as well."
Alexander said the introduction of number portability meant customers would also be able to keep their existing phone number.
"A number of subscribers who have trialled the service have done just that and no longer pay more than $40 a month just to get dial tone."
The WorldxChange service, Xnet Xtend, will start from $99 a month but customers will also need to pay up to $800 for installation of a small antenna to receive the radio signals.
BayCity Communications in Timaru expects to launch its voice service for rural customers this year.
BayCity at present uses satellite transmission and Kordia's network to provide broadband to those not able to access high speed internet via Telecom's network.
The company signed a 12-year, $100 million deal in April with satellite-owner Ipstar which will allow it to deliver phone and internet to between 40,000 and 60,000 customers.
BayCity managing director Tony Baird said the company was testing high-quality, satellite-based VoIP services between the Albany satellite gateway dish and its Timaru head office.
Baird said the company was still completing the prices for the service but it would be competitive with calling rates.
"Part of getting voice on the satellite and broadband on the satellite is so that we become a credible alternative to Telecom for rural."
BayCity will also begin running IPTV - digital television delivered using internet technology - this year using the satellite link.
Waiting Over
* Rural customers are to get an alternative to Telecom for phone calls.
* WorldxChange begins offering VoIP calling from July.
* BayCity Communications will have VoIP services available this year.
