Internode claims its NodeLine service can reduce residential customers' monthly charges by more than $40, "based on typical calling patterns".
The $29.95 monthly line rental is the same as Telstra's HomeLine Plus, and the savings come from call charges.
"Long distance calls are billed as 15 cents per minute while calls to mobile phones are billed at 29 cents per minute, both with no flagfall," said Internode product manager Jim Kellett.
So how typical are you?
Internode's $40 saving is based on making two local calls and two three-minute mobile calls per day, two five-minute long-distance calls per week, and two 10-minute overseas calls (based on the rate to the UK) per month.
The comparison is a bit dodgy, as the Telstra price for a 10 minute call is based on the standard per-minute rate rather than the "$1 for up to 10 minutes" offered to HomeLine Plus subscribers.
And beware if you make plenty of local calls - see page 2.
If you mainly use your fixed line for local calls, you could end up paying more with NodeLine. Internode charges 20c per call, compared with Telstra's 18c.
While NodeLine may reduce some people's phone expenditure, you'd need to look carefully at your recent bills to work out whether it can save you money.
If you do have a broadband connection but want the assurance that comes with a regular phone line, you might save more by switching to Telstra's HomeLine Budget plan ($20.95) and then using VoIP for outbound calls (rates of 12.5c for calls to fixed lines, 24c per minute to mobiles and from 2c per minute to overseas numbers are readily available).
That way, you keep your analogue line for incoming calls, and as a backup in case of power cuts and other emergency situations.
And the $9 per month saving on line charges is enough to pay for a VoIP router if you don't already own one.
It will be interesting to see what Internode puts into the NodeLine bundles the company has foreshadowed. Maybe they will offer value to a broader range of users.