Taiwan firm offers free Wi-Fi calls

A Taiwanese consumer electronics manufacturer plans to set up a city-wide Wi-Fi phone network in Taipei. Ennyah Technologies will rent out dual mode Wi-Fi and GSM phones for a flat rate of about $33 per month, which will include unlimited international calls, company spokesman Patrick Peng told VNUnet. The company also offers lower priced Wi-Fi-only handsets starting at around $16 per month. The handsets are supplied together with a wireless access point to ensure that they will work at subscribers' homes or offices.

The handsets connect directly to the internet over standard Wi-Fi links, without requiring a PC as an intermediary, Peng said. They use the widely accepted SIP (Session Initiation Protocol) standard to set up VoIP (Voice over Internet Protocol) phone calls. Gateway servers connect VoIP calls to traditional fixed and mobile phone networks when necessary. Ennyah's voice service, dubbed Wi5, is already being tested and the company will phase in operations during the next few months.

Taipei's city government is currently rolling out a network of 5,000 to 10,000 wireless access points, Peng says. The 'WiFly' network will blanket the city of 3m with Wi-Fi internet access. The project is approximately 60 per cent complete. Other cities in Taiwan are planning similar coverage. The city government is expected to make an announcement about the voice service on Monday next week.

Hutchison Global Communications (HGC), based in Hong Kong, will carry the calls over its international fibre optic network. While all international calls will be carried free, local calls that connect to landline or mobile phones will be charged, at least initially.

Ennyah, a developer of MP3 players, digital cameras and graphics cards, with a staff of 150, is relatively small compared to competitors in the consumer electronics and PC hardware business. As a result, the company has faced pricing pressure on many of its product lines. Hence the decision to move into the telecoms service market, where its extensive local retail channel connections are an advantage.

“HGC cooperated with us on this project because we have local offices and retailer support all over Taiwan,” Peng said. Ennyah hopes to offer the service in Singapore, where it also has retail distribution connections.

Mobile phones from major manufacturers like Nokia are increasingly coming with Wi-Fi calling ability as standard.