One.Tel strikes GSM deal with Telstra

One.Tel and Telstra have signed a national GSM (global system for mobile communications) roaming agreement.

Following the agreement, One.Tel's GSM mobile phone users will have access to Telstra's nationwide network coverage, including regional areas not currently covered by One.Tel.

One.Tel's GSM 1800 network is currently being established and the two telcos are conducting trials for the service. The roaming service is expected to be launched early next year.

One.Tel's investor relations director, Sandy Slessar, said it's customers initially customers would simply "drop out" when using mobile phones outside the covered area. Customers would have to redial to be re-connected via Telstra's network, she said.

Slessar said the agreement would incur no financial transaction between the two telcos.

"We'll have access to their network and they'll get our customers," she said.

Slessar said GSM roaming agreements like this were common overseas. "But it's still very new in Australia," she said.

Slessar said One.Tel expected the agreement would boost its customer base to 2.5 million users within five years.

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