Media releases are provided as is by companies and have not been edited or checked for accuracy. Any queries should be directed to the company itself.

Telstra Net Phone Challenge

  • 18 June, 2005 12:11

<p>EMBARGO - NOT TO BE BROADCAST/PUBLISHED BEFORE MONDAY JUNE 20</p>
<p>TELCO ISSUES TELSTRA INTERNET PHONE CHALLENGE:</p>
<p>IN BRIEF:Mid size full service telco Telecorp Limited who, since 2002, has established themselves as a multi million dollar a month player in the lucrative Australian/NZ pre and post paid phone card market, today threw down the gauntlett to both Telstra and Optus when it announced its entry into the fast growing VoIP Internet Phone market with flat rate 9.9 cents "anywhere to anywhere" untimed local and interstate phone calls - and 2.9 cents a minute international calls.</p>
<p>FINAL CUSTOMER TRIALS OF TELECORP'S "GOtalk BROADBAND VOICE" (www.gotalk.com.au) WERE COMPLETED SUCCESSFULY ON THE GOLD COAST THIS WEEK AND THE OFFICIAL LAUNCH OF GOtalk BROADBAND VOICE WILL ROLL OUT NATIONALLY W/C MONDAY JUNE 20.</p>
<p>Details follow.
For more information please contact Terry Quinn 02 9460 0145; 0439 710 418 or Stacey Anstey 07 555 36 808</p>
<p>Terry Quinn
0439 710 418
Telecommunications Industry Media Release:</p>
<p>ESTABLISHED TELCO ENTERS VoIP INTERNET PHONE MARKET WITH FLAT RATE 9.9 CENTS "ANYWHERE TO ANYWHERE" UNTIMED LOCAL AND INTERSTATE PHONE CALLS – AND 2.9 CENTS A MINUTE INTERNATIONAL CALLS.
CEO WARNS CONSUMERS TO BE WARY OF START UP "ONE TRICK PONY" SINGLE SERVICE OPERATORS.
Sydney Monday June 20: Telecorp Limited, a privately held, established and fast growing full service Australian telco will use the multi million dollar a month strength of its market leading position in the youth, traveller and ethnic phonecard market to underpin the launch of a range of cheap "anywhere to anywhere" flat rate, untimed Internet phone services later this month.</p>
<p>The services, to be known as GOtalk Broadband Voice and marketed as an alternative – not a replacement - cost saving second phone line for the home and small business, will offer Australian families and SMEs untimed local and national long distance calls –"representing the first such credible low cost phone service to the mass market by a reputable, already established phone company," according to CEO Steve Picton.</p>
<p>With aggressive pricing starting at 9.9cents for untimed calls anywhere in Australia, not just capital cities - and starting from 2.9cents a minute for international calls - GOtalk Broadband Voice promises to save families, especially those with phone addicted teenage children, hundreds of dollars a year on their phone bills.</p>
<p>Telecorp Limited, a publicly unlisted venture, was formed in March 2000 and currently has a turnover of over $13 million per month. Since its inception Telecorp has grown at a rate exceeding 30% a year into a full service communications company with 300 employees. It has built a multimillion dollar growth business based on calling card services (both prepaid and postpaid), complete voice services (including local calls and line rental), postpaid mobile services, Internet services (both Broadband and dialup), teleconferencing and messaging. CEO Steve Picton, one of Australia's most experienced telco executives, was formerly Group Director, Strategic Development, AAPT overseeing that company’s successful expansion into data, Internet, satellite, mobile and voice services. Prior to AAPT Mr. Picton was a senior executive with British Telecom for nine years.</p>
<p>Mr. Picton, said he was not concerned by the timing of his company’s entry into the VoIP Internet phone market – or the imminent arrival of Telstra or Optus.</p>
<p>"Apart from one or two exceptions, the recent arrival of a rash of underfunded and under resourced start ups entering the VoIP market are mostly single service operators who don’t have the scale, geographic spread, or the infrastructure to last the distance," he said. "Telecorp customers already buy more than 100 million minutes a month from our various services – that’s over one billion minutes a year and growing at 30% annually – so we have the experience, the infrastructure and the clout to deliver VoIP services efficiently and cost effectively."</p>
<p>"Apart from the obvious attraction of cheaper rates GOtalk Broadband Voice has the ability to offer untimed calling anywhere in Australia 24/7 and its inclusion of the Internet phone as part of a fixed wire and/or ADSL service bundle delivered on a single customer account."</p>
<p>Mr. Picton warned that Broadband users contemplating connecting to a VoIP Internet phone that they should check company credentials and compare services very carefully before signing up.</p>
<p>"Unlike some of these one trick pony operations, our continued success will not depend on Internet phones, and we will be around for many years to come" he said.</p>
<p>"Most of these early entrants and their fight for a few thousand early Broadband adopters will only serve to raise public and media awareness but eventually they will be swept aside by the arrival of established players such as Telstra, Optus – and Telecorp," Mr. Picton said.</p>
<p>"GOtalk Broadband Voice will be available via any Broadband access methods – Cable, ADSL, wireless. It will be initially targeted directly at families with heavy phone user teenagers, students living away from home – and the highly profitable ethnic market," Mr. Picton said.</p>
<p>"As an extension of our market leading phonecards, consumers will be able to sign up to a prepaid option to enhance cost control whilst still offering exceptionally low rates. They can use VOIP to access our great phonecard rates and avoid the need for the cost of a local call.</p>
<p>(Telecorp’s Cardcall division is a market leader in pre paid, fixed wire, Internet and mobile with sales of more than 300,000 new pre paid phone cards worth $10 million every month via 30,000 retailers including Woolworths, 7-eleven, and Newsagents. It has achieved a growth factor of over 50% for each of the last three years. The company launched CardCall in New Zealand in March 2004 and now holds approximately 20% of the market.)</p>
<p>"With the Broadband Market already at 2 million and with a growth of almost 40,000 per week, we believe the time is right for Telecorp to enter the Internet VoIP market – not too early and not too late," Mr. Picton said. "Time enough to establish ourselves before the arrival of Telstra and Optus. Analysts predict there will be 4 million Broadband connections within two years – or 60% of Australian households," he said.</p>
<p>"We also continue to offer high levels of customer service through our state of the art call centre which handles 10,000 calls per day in 9 languages."</p>
<p>Telecorp operates several discrete and highly successful operations – such as the distribution of phone cards from EFTPOS Terminals where it holds more than 50% of the market with sales exceeding $2 million a month.</p>
<p>Its GOtalk brand, launched in March 2003 generates revenues of $3.5 million plus a month as a full service consumer and SME business with more than 40,000 customers offering a popular service bundle including Long Distance; Line Rental, Mobile, Dial Up/Broadband Internet on a single invoice. Customers will be able to bundle all GOtalk services with GOtalk Broadband Voice – and consolidate their cost savings into one invoice.</p>
<p>The Telecorp Corporate &amp; Wholesale division includes customers such as IBM – Paramatta City Council – Travelex and also channel partnersTelstra, Optus, AAPT and People Telecom.</p>
<p>ends GOtalk Broadband Voice</p>

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