Last month, Telanetix's AccessLine Division launched a product to Costco members that combines a low-cost business VoIP phone service with a VoIP business phone system. The package is targeted at members operating a small and midsize business with five or fewer employees. According to Telanetix, the Digital Phone Service package is up to 50% cheaper than comparable offerings from traditional phone companies and equipment manufacturers. The service includes local and long-distance calling, it supports toll free and international calling, and includes traditional VoIP system features like fax mailboxes and automated attendant.

Customers order the package by phone and the system is pre-configured to meet their requirements. Connectivity is provided over an existing broadband connection, although as part of the order process AccessLine will test and prequalify the broadband access line to make sure it provides sufficient quality and capacity to support the system ordered. AccessLine also continues to monitor the circuit and can remotely manage the phone system once installed.

According to Kent Hellebust, Telanetix chief marketing officer, the preconfigured system is easy to install: “All a customer needs to do is plug it into their router, wait about 15 minutes for the green light, and start making phone calls,” he said. As needed, the system can also support two to eight VoIP trunk lines, up to 24 VoIP phone stations, and up to three traditional POTS lines.

Addressing the cash flow needs of SMBs, the starter package includes a Mitel 1000 Phone System, two trunk lines, one desktop phone, and the first year of service is free when buying the system. At the end of the first year, the customer has paid for the system with this incentive-based installment plan. Prices for the starter package begins at between $78.98 and $88.98 per month for the first year (depending on the customer’s Costco membership category) with unlimited local calling and 3,000 monthly minutes of domestic long-distance. Unlimited long-distance plans ($30 a month), additional phones ($6 a month), and other features are also available. Full pricing and options can be found here.

Hellebust also noted that the company plans to extend its sales channel through other retailers over the next several quarters. When we asked how Telanetix, traditionally known as a telepresence provider, plans to create synergies between its voice and video portfolio, Hellebust said his company will work to bring these together because they both relate to the mid-market business with value-based pricing models.

Steve Taylor is president of Distributed Networking Associates and publisher/editor-in-chief of Webtorials. Larry Hettick is a principal analyst at Current Analysis.