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Freshtel launches cellphone VoIP service in Australia

Your IT - Home IT

Freshtel (ASX: FRE) has launched in Australia its own retail version of the cellphone VoIP service it is wholesaling to UK retailing giant Tesco.

The Tesco service was launched last week. Users download an application onto compatible cellphones and are then able to make free calls to other 'on-net' users and low cost calls from their cellphone via their home WiFi network or public WiFi hotspot. iTWire had a chance to preview the service prior to its launch, and you can read our report here.

The feature of the service that sets it apart from other offerings such as Skype from cellphones is that calls to other users are made to that person's normal mobile number and when any mobile phone or CLI enabled fixed line phone is called from the Freshtel VoIP enabled cellphone, the called party sees the caller's usual cellphone number.

Calls are also free to users of Freshtel's standard PC-based VoIP offering and a presence indicator in the Freshtel application indicates the availability of on-net contacts.

Freshtel had earlier indicated that it would be launching the service in Australia as a white-label offering with a retail partner, as with the Tesco service in the UK. However the company says it will retail it direct to customers in Australia under the brand 'Freshtel Mobilelink'. Initially, it will be sold through Freshtel's website www.mobilelink.freshtel.net , "while the company finalises partnerships in Australia and globally."

CEO Rhonda O'Donnell said: "Releasing our own retail version of the product is an important component of our go-to-market strategy for Freshtel Mobilelink. For one, this approach enables us to get the product out into the Australian market quickly. We have a base of approximately 300,000 registered users on Freshtel's Australian network to whom we will market the solution...Additionally, establishing our own retail offering allows us to demonstrate the power of Freshtel Mobilelink to potential new wholesale partners and start to realise a return on investment as we capture revenue from subscriptions and ongoing call revenue."

Freshtel Mobilelink offers call rates of 15c per 30 seconds to Australian mobiles without flag all and 2.5c per 30 seconds to Australian land lines. International calls start at 1c for 30 seconds. However fees are prepaid and anyone paying $50 gets a $20 bonus credit. $35 gets $15 bonus and $25, $5 bonus.

O'Donnell said the product had the potential to shake up the local mobile market and held particular appeal for customers who regularly exceeded their cap plans. "We believe customers could save around 50 percent on their current mobile bill."

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