Davnet has announced it will enter the ring against Telstra, Optus, AAPT and Vodafone in October, when it launches a local and national telephone service.
The carrier currently operates as a corporate building-wide telecommunications provider.
According to Davnet's managing director, Stephen Moignard, the move into local telephony is integral to the company's plan to become a leading telecommunications and multimedia force in Australia and the ASEAN region.
According to Moignard, using the Australian Communications Authority (ACA) preselection code 1464m Davnet will offer local, STD, IDD and fixed to mobile services in Australia.
"Our service will offer highly competitive rates and along with being granted 40,000 local telephone numbers in Sydney, Melbourne, Brisbane and Perth, this represents the first step in providing local telephone services, local Internet dial-up and metropolitan region virtual private networks across the nation," he said.
The announcement follows recent news that Davnet has made a takeover offer for local and long-distance telephony group QAI Australia. Officials said QAI Australia's directors have recommended Davnet's $6.20 per share offer.