Primus has taken advantage of the Australian Competition and Consumer Commission's (ACCC) decision to allow Telstra's competitors access to the local loop, launching a 22c local call service.
Officially announced last week, Primus' new service has been available to customers for the past couple of weeks.
Primus has combined its new local call offering with its long distance and International calls, Internet service and calls to mobiles to create a package called PrimusTotal.
Just what share Primus will be able to gain in the $5 billion local call market will depend on the nature of its wholesale agreement with Telstra, company officials said.
In coming months, Primus plans to extend its own network out to local exchanges, then access Telstra's copper lines which connect customers to local exchanges, said Ravi Bhatia, Primus' managing director.
Until its network extension is complete, the carrier will resell Telstra services.
Bhatia said the impact of the ACCC's decision to allow competitors to connect to Telstra's local network was "unbelievably good in terms of the gains customers will make". "The most significant challenge we face in the industry is lack of communication between top managers in the industry," said Bhatia.