Things are start to move and the ISPs are now opening their games. There are rumours Xtra will offer a VoIP service, but the first I see confirming anything is Orcon with this press release today:

Orcon to offer Naked Broadband and VoIP in September
Internet and telecommunications provider Orcon has today announced that it will be launching a Naked DSL broadband product in September, allowing users to have broadband without having to pay a monthly line rental for telephone service.

Currently, in order to get broadband in New Zealand, you must pay a line rental for your analogue telephone service, in addition to your monthly broadband fee. With Naked DSL there is no longer a requirement to do this.

"There are a surprising number of customers for whom an analogue telephone line has very little value, or who have a strong desire to move to VoIP telephone solutions. We are very pleased that industry pressure has paid off, and we will be able to offer these customers a stand-alone broadband solution in a matter of months" said Scott Bartlett, Chief Executive of Orcon.

Customers are able to continue making phone calls using a VoIP (Voice over Internet Protocol) service. Orcon has previously announced that they will be launching such a service, deployed on their new Siemens soft-switch, between now and the launch of Naked Broadband.

"While the pricing for our VoIP product, DigitalVoice, is currently being finalised, I can assure you that we will be offering rates substantially lower than current toll calling prices offered by our competitors" continued Bartlett.

There is currently a lot of confusion surrounding VoIP services, particularly the quality of calling.

"It is important not to confuse free or near free internet telephony services such as Skype with those offering quality of service. DigitalVoice from Orcon will offer similar, or even better quality than a regular analogue telephone service in most cases" explained Bartlett.

Agreement to offer Naked DSL services was reached through the Telecommunications Carriers Forum, of which Orcon is a key member, and Orcon has applauded the willingness of Telecom Wholesale to proactively introduce this product to the market in advance of regulation.

"We are really pleased that the industry has been able to work together with Telecom to deliver a solution that is acceptable to all parties" concluded Bartlett.

Pricing for the naked DSL service is still being determined, and will be made public closer to the launch date.