KEY POINTS:
Vodafone has moved closer to becoming a full-service telecommunications player with a new toll-call service for business customers - sparking an immediate reaction from competitor TelstraClear.
British-owned Vodafone is looking to translate its strong share of the mobile market - estimated at 55 per cent - into toll customer loyalty. It will use an existing deal between its internet operator ihug and Telecom to offer toll packages to businesses.
"Really it's about providing the full communication needs to SoHo - small office, home office - and SME customers to provide their fixed and mobile calling," Kursten Shalfoon, head of products and services, said.
Under the deal, Vodafone's toll customers will retain their present Telecom phone number and line rental agreement with calls automatically switching to the Vodafone network.
When Vodafone bought ihug for $41 million last October, it said it would use the internet and phone company to fulfil its ambitions to become a full service telco, offering mobile, toll and broadband.
IDC analyst Darian Bird said any internet service provider or telco hoping to survive in the next few years would need to be a one-stop telco shop.
"Small businesses will increasingly start using one provider to take advantage of the convenience and cost savings ... At the moment, this is Telecom's strength but Vodafone has shown that it's serious about targeting the small business space."
Bird said Vodafone would still retain the strong mobile focus, but had accepted the need for a fixed-line offering. He also expected further product developments over the long term, including a combination of mobile calling with voice over IP (VoIP) using ihug internet in the office.
Vodafone's entry into the business market drew a swift response from the other telco trying to muscle into into Telecom's business market.
Australian-owned TelstraClear yesterday introduced four new packages for small and medium business customers. The plans include cheaper calls for a fixed monthly cost.
Shalfoon said Vodafone would be moving to wholesale the landline rental from Telecom within a couple of months.
Customers switching to Vodafone for mobile services and toll calls would be able to call from a landline to Vodafone mobiles for 15c - 60 per cent less than what they might be paying today.
Shalfoon said that while Vodafone's focus would be on making an aggressive play for the small and medium-sized business market - up to 100 employees over a number of sites -it would also offer tailored deals for larger business customers.
