The company says the upgrade of its network to support VoIP is the culmination of a $10 million network expansion strategy. Managing director, Paul Broad, said the launch of VoIP capability was the first step in a staged roll-out of further product offerings within the next nine months.

"VoIP gives our wholesale partners the opportunity to have all their customers' communications – voice, video and data – carried over one secure, private network."

PowerTel announced last May that it had awarded a contract to Huawei to supply a "next generation DSLAM technology platform" which would provide "scope for a multitude of new services including Internet, data and voice." Rollout was due to start in August.

Prior to that, PowerTel had announced in December 2004 that it expected to spend $6 million to $8 million adding over 150 DSLAMs during 2005. Broad said at the time that he expected a payback period of 12 to 18 months based on growth from PowerTel's channel partners.

He told a PowerTel Partners Forum in February 2005 that further expansion was likely. "We think will need to keep going to 500. That will give us access to 75 percent of the Australian market...We will grow from the base where our infrastructure is strongest."