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Local VoIP Firm In Tesco Win |
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Written by Adam Gosling
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Monday, 23 January 2006 |
Freshtel has launched its VoIP wholesale service for major UK-based retailer Tesco.
The deal signed last year pushes local VoIP network management company Freshtel into the international limelight as the major British retailer takes on BT with a VoIP offering
Tesco is the UK’s largest supermarket chain and already has a number of telecommunications services on offer including mobile phones, domestic fixed line and internet access services. Tesco Mobile has a million customers and entered the broadband internet access market in August 2004.
However, eager to put down the service, rival VoIP providers in the UK have already come out strongly criticising the service . They point out that although call prices are low, the service is tied down with so many restrictions it could end up costing an arm and a leg.
Details of the offering seem straightforward enough, the starter pack for the pay-as-you-go option is £19.97, for this you get a handset and £5 worth of calls to get you started. While calls to other Tesco VoIP customers are free National (UK) calls, some international destinations are just 2p a minute. Calls to mobiles are 10p a minute.
The main criticism seems to emanate, not surprisingly, from rival BT which has recently launched its own residential VoIP services in England. Describing the Tesco system as a "poor deal for consumers" John Petter, COO of BT Retail, pointed out that the time-based rates could work against the consumer on some calls: a 60-minute weekend could cost £1.20 from Tesco’s and only 5.5p with BT. Another example is weekend calls to a Vodafone mobile which would be 10p per minute from Tesco and only half that with BT.
Other VoIP providers got in on the act, but Tesco’s could well have the last laugh, the company is no slouch at selling telco services recently announcing it has signed over a million people to its mobile phone services..
Freshtel announced its agreement to provide Tesco with the ‘white-label’ internet protocol telephony service in December 2005 and has entered into a formal contract. As a separate transaction, and as announced to the ASX on the 29th of December 2005, Tesco has purchased a 6% stake in Freshtel Holdings.
Andy Dewhurst, CEO of Tesco Telecoms believes the launch of Tesco internet phone will make a niche product accessible to a mass market and will change the way people make their fixed line calls in the UK.
“This alliance is a significant achievement for Freshtel and reflects our commitment to successfully establishing substantial global VoIP partners. We will continue to retrieve revenue from this agreement through the per user licence fees, margin on all calls to landlines or mobiles and hardware sales,” Carew added.
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