Throwing us a line - The alternatives

How will New Zealanders get cheaper calling? Only through "infrastructure competition", argues Telecom.

"You've got to admire the Vodafones and the Wooshes for being prepared to invest in real infrastructure," says Telecom chief operating officer Simon Moutter.

He is referring to two of the companies that aim to use wireless technology to deliver cheaper calls and internet access.

With a network operating in parts of Auckland and Southland, Vodafone-backed Woosh is already delivering competition in the high-speed internet market. It hopes to offer an internet and voice calling package in the coming months.

WorldxChange last week signalled its intention to deliver high-quality voice calls via internet connections. It is set to launch a voice service in conjunction with Wired Country south of Auckland. In the wings waits Broadcast Communications, which plans to start in rural areas before bringing its wireless services to metropolitan centres.

But there are a lot of "ifs" between the promise and reality of cheaper calling. None of the wireless players have been particularly keen to publicly demonstrate their ability to make voice calls over wireless infrastructure.

As TelstraClear chief executive Rosemary Howard points out, "there isn't one commercially successful deployment of wireless in the world yet" for voice calling.

It is also dipping into wireless in a bid to overcome its lack of access to consumers.

However, Slingshot chief executive Annette Presley describes wireless as "bleeding edge" - not yet ready to deliver cheaper calls to the masses.