Cafenet News

Telecom's WiFi for Xtra clients only

26 April 2004

Telecom plans to restrict access to its forthcoming WiFi wireless Internet "hot spots" to its existing Xtra customers.

The telco will unveil plans late next month for a nationwide WiFi roll-out which will initially provide wireless Internet access from locations such as airports, conference centres and hotels.

The proposal to limit access to Xtra customers contrasts with the inclusive approach of other WiFi operators, which usually sell Internet access by the megabyte to credit card holders, or at the hot-spot location.

Telecom has trialled WiFi in Air New Zealand Koru lounges with 100 of its business customers.

The company also plans to announce networking bundles for consumers involving WiFi hardware and its Jetstream Internet broadband service.

Rod Snodgrass, general manager of Telecom's wired division, says WiFi is maturing quickly and is the technology "everyone is hot and sweaty" about.

Telecom sees WiFi as an add-on to services already offered to home and business customers, rather than being a business proposition in its own right, he says. Targeting existing Xtra customers is easier because they already have billing arrangements with Telecom.

Customers will be billed through their Xtra account and the traffic counted under their Jetstream data caps.

Mr Snodgrass says Telecom is not interested in offering voice-over-WiFi technology, because of quality issues. But it is interested in one day offering WiFi-capable phones that can switch between WiFi and its cellular network.