The phone future is calling

Telecom is launching trials of an internet-based telephone system intended to eventually replace the standard landline.

The tests mark the first foray for New Zealand telecommunications companies into voice-over-internet protocol (VOIP) - also known as IP telephony - a technology commentators say could revolutionise the way people communicate.

The Telecom service, scheduled for full release late next year, will be run over a web portal that will allow users to centrally manage calls, voicemail, emails and text messages. Consumer marketing head Victoria Crone said the service would improve flexibility and control.

Users will log-in to a Telecom-run website from which they will be able to monitor or divert calls, and set up 'block lists' to frustrate telemarketers or other unwanted callers.

Calls will be made from a standard phone plugged into the computer or over a specialised internet phone.

While the price for the service had not been determined, she said Telecom's commitments under the telecommunications service obligation (TSO) made it unlikely there would be any charge for local calls.

Popular web-based phone services such as Skype or Vonage have presented a growing threat to traditional telecommunications companies.

Skype now claims 105 million users worldwide, including 40,000 in New Zealand. The software, which can be downloaded for free, allows users to make voice calls over their internet connection using a microphone plugged in to their computers. Calls can be made at no charge to Skype users or to standard landlines for a minimal cost using SkypeOut.

ABOUT SKYPE

- It can be downloaded free (and legally) from www.skype.com.

- With a computer, a microphone and speakers, Skype users can call other Skype users for free.

- A call to a landline in Britain, Australia or the USA using SkypeOut costs less than three cents a minute.

- Telecom's IP telephony won't be free, but will offer greater control and flexibility than services such as Skype.