Telco signs network use deal with Vodafone

Telco CallPlus is set to offer mobile phones after signing a wholesaling deal with Vodafone.

Under the agreement - set to go live in August - CallPlus becomes a mobile virtual network operator (MVNO), using Vodafone's network to run a mobile service.

Mark Callander, general manager of CallPlus' Slingshot brand, said the mobile deal built on an established wholesale relationship in the broadband market.

"We've managed to get a deal that will work for both parties," he said.

A common sticking point for wholesale deals is the ability for the network customer to be able to create a point of difference - both on pricing and service - from the network operator.

Callander is confident CallPlus has struck a deal that will allow it to innovate and offer a range of services not available in the market.

He said that was not the case with the first deal tabled by Vodafone when it began offering MVNO contracts in 2007. Callander said the combination of a better relationship with Vodafone and the impending competition from Telecom's XT Network had improved the deal on offer.

Callander said the company would look to bundle the mobile service with its fixed-line and broadband offers.

"We're fairly aggressive in terms of pricing models and pricing structures. We do things differently," Callander said. "We wouldn't have signed up for a deal that didn't enable us to innovate because we see no value in just being a 'me too' reseller."

In addition to CallPlus, Vodafone has signed Black&White through a deal with Australian telco M2, plus Orcon and Compass, which are due to launch later this year.

Callander said CallPlus had looked at Telecom as well as Vodafone.

"At the end of the day, not getting access to [Telecom's] wideband CDMA network was the killer blow."