Internet users in line for cheaper connection
Page 1 of 2 5:00AM Wednesday July 04, 2007
By Helen Twose
From September, broadband customers will be able to connect to the internet without paying Telecom for a phone line for the first time.
Under an agreement reached by the telecommunications industry, Telecom will sell a service to its wholesale customers - the likes of CallPlus, Orcon, ihug, WorldxChange and its own retail arm - which will give consumers access to the internet without paying up to $43 for line rental.
The broadband connection will still be provided via the copper phone line service.
The agreement came out of industry negotiations and will be incorporated into Government regulation of telecommunication services.
Graham Walmsley, head of wholesale at internet company CallPlus, said the changes would mean consumers could elect to get rid of their phone line in favour of Voice over Internet Protocol (VoIP) phone services - phone calls using the internet.
CallPlus have offered VoIP services to its business customers since 2001 and to residential customers since 2004.
"The products are already there, it's been gaining the access that is the inhibitor," said Walmsley.
Initially, the quality of voice calling may be affected by speed and connection conditions on the internet outside the control of the internet service provider.
However, from the middle of next year the voice service will improve as Telecom upgrades its network and offers a dedicated voice channel for internet calling.
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