Hyderabad-based Internet service provider Nettlinx, in association with Smart IMS, a US-based corporation is coming out with its VoIP services across Andhra Pradesh under the brand name of ‘Matallo’, which means ‘In Words’ in Telugu.

Under the new initiative, Nettlinx will provide VoIP services with the help of special ‘Matallo’ VoIP phones that will enable the users to communicate to various international destinations via the IP network of Nettlinx, according to Manohar Loka Reddy, director of Nettlinx.

The calls on Matallo services will help those who are not computer-savvy and can just get connected like any other phone but will work over the broadband internet connectivity.

Smart IMS is providing both financial and technical support for the company’s VoIP telephone services.

Chief minister Y S Rajasekhara Reddy today formally launched the ‘Matallo Phones’ and expressed happiness over Telugu entrepreneurs coming together to provide low-cost telephony services and helping the people retain their bonds with their near and dear ones living abroad.

The company will be rolling out various models of phones such as ‘Matallo Home’, ‘Matallo Enterprise’ for voice and also ‘Matallo Videophone’ that offers a high-clarity video stream helping the callers to be over a video call and also conduct video conferences.

According to Manohar Loka Reddy, the company will launch the VoIP phone services across the country besides the US, Canada and part of UK in the second phase.

The company is looking at a subscriber base of between 50,000 and one lakh in the first year. It expects to expand up to 8-10 lakh subscribers in three years. While the company charges Re 1 per minute for long distance calls to the US, Canada and Europe, it offers phone-to-phone calls free of charge.

Nettlinx also sees a great business potential to free phone-to-phone call services both locally and abroad as, according to a study conducted by the company, 70 per cent of the calls made by an average telephone user was confined to just 4-5 telephone numbers.

“This way, people can connect themselves through our VoIP phones at no call charge and reduce their telephone bill by 70 per cent,” Reddy said.

The company offers a VoIP phone instrument at a refundable deposit of Rs 2,000, and a video-enabled phone at a refundable deposit of Rs 10,000. The company is initially investing about Rs 10 crore and the entire launch plan requires up to Rs 100 crore, according to the Nettlinx director.

Nettlinx, promoted by North East Securities Limited, is one of the biggest ISPs in Andhra Pradesh with 12 points of presence and nearly 200 network nodes.