New Zealand's latest cellphone network operator, Black + White, says it's looking to win small business accounts via an email hosting hook-up with Microsoft. The company will also be looking to lure NZ's disproportionately high number of mobile customers on Telecom, TelstraClear and Vodafone prepay plans.

Launched yesterday, Black + White has bought wholesale network access from Vodafone, making it a virtual mobile operator (VMO) in industry parlance (Vodafone has three more VMO deals in the works).

Black + White is 100% owned by its CEO, Johnathan Eele, who has formerly worked in handset procurement for Telecom and, after returnign from a Stint with UK carrier "3", helped launched the company’s current "T3G" CDMA network.

His company’s billing and other back-end systems are being handled on contract by  M2, and Australian company that specialises in VMO operations.

Challenger brand
While the VMO concept is new to New Zealand, it's been operating in other countries for some time. Asked by NBR why some VMOs succeed and some don't, Mr Eele said "Those that failed focussed on a content proposition. Those that succeed focus on simplicity, their phone plans and positioning themselves as a 'challenger' brand."

Pushed to name his model VMO, Mr Eele plumps for Richard Branson's Virgin Mobile, which operates in the UK.

Targetting small business
A trio of Black + White plans targetting small business users will be central to his company's plans, Mr Eele says. Black + White has partnered with Microsoft New Zealand to offer hosted email, meaning a small business person with no technical nous can sync their office email and calendar with their cellphone. $500 Palm Centro smartphones (pictured) - unique to Black + White - are pushed with the plans. Mobile data is also included, plus the option to register a own domain name for personalised email.

Black + White's small business plans give one-person companies access to corporate grade mobile phone services for the first time, says Mr Eele (Telecom is also offering Microsoft's hosted email service via its new small business hub). Full pricing and plan options are on Black + White's website.

Down in the cheap seats
Black + White is figuring its plans will appeal to those currently on prepay accounts. Mr Eele says around 70% of mobile phone subscribers are on prepay in New Zealand, compared to an international average of around 40%.

The VMO’s plans start at a $30 a month base rate, with calls to any New Zealand number costing 30 cents a minute on top of that. 600 texts are included in the plan.

Neither Vodafone no Telecom’s prepay plans have a fixed monthly charge, but both share the same, higher, cost per call: 49 cents a minute to mobiles on the same network and $1.39 a minute for calls to another network.

People who switch to Black + White from another network can retain their 021, 027 or 021 number, but customers will also have the option to take a new number with the company’s 028 prefix.

Black + White is offering its own mobiles - some in its signature monochrome colours - but most cellphones currently being used on Vodafone's network should be compatible with Black + White's SIM cards, says Mr Eele.

Mr Eele would not be drawn on the number of customers he's targetting during his first six or 12 months. Given the current market environment, he has no immediate plans to list, but his backend system launch partner, M2, is on the ASX.