
TelstraClear will launch their own mobile network to the public tomorrow, with what they are describing as a "staggeringly cheap" alternative to the two current providers.
The deal will be announced in television advertisements tonight, but is said to include a free Nokia handset worth nearly $500 with 500 free texts to both rival networks and a flat 29c per minute national calling, with a monthly access fee of $20.
However the main catch with this deal is that customers will need to be signed up to one of TelstraClear's homeline and broadband plans in order to be eligible. This could pose a problem to customers wanting to change their mobile provider, as many ISP's have now locked their customers into contracts of at least 12 months.
The Commerce Comission announced earlier this year that both Telecom and Vodafone's prices were too expensive by international standards. The introduction of TelstraClear into the market is expected to force them to lower their prices, which at the end of the day will see every consumer come out as the winner.