TelstraClear joins the local mobile market today, bringing welcome competition for cellphone users.
Its entry into the market includes an offer of a free Nokia 6275i handset, worth nearly $500, 29c a minute for national calling and 500 texts to any network for $20 a month. Customers can
also call a mobile or landline in Britain, the US, Australia, Ireland and Canada for 40c a minute.
The catch: the mobile service is available only to TelstraClear customers on a 24-month term who have broadband, phone line and calling with the company.
A Telecom spokeswoman welcomed the new competition. Without going into specifics, she said Telecom had "an awful lot of plans" which were competitive against the new player's offer.
Among its best offerings for giveaways was an Okta Agent phone, worth $399, on a Telecom Flexi 24-month deal.
The offer includes 500 free texts to any local mobile, although its call charges per minute range from 20c in the evening to 99c for daytime calling. Telecom charges $71.35 a month in Auckland and $67 in Christchurch and Wellington for a landline and broadband. TelstraClear charges $71.95 and $62.90.
Vodafone spokeswoman Alison Sykora agreed it was difficult to make comparisons between its products and TelstraClear's. "But we are pretty comfortable that what we have is really good value already ... when you get into the $40 range you get quite a lot more than what is being offered by TelstraClear," she said.
Ms Sykora said Vodafone was big on "add-ons" where customers could choose extra services to go with their plans, which start at $18.95.
Vodafone charges about $70 for both landline and broadband services. She said Vodafone's focus had been on "innovation".
"We have a product called Family where up to four people on the Vodafone network can have unlimited calling, texting and video calling for $20 a month ... you can't beat that for value."
Telecom Users Association of New Zealand president Ernie Newman said TelstraClear was probably trying to shore up its business against more competition in residential fixed-line services.
