A promotion of recently launched mobile service by the Compass Communications claims that on their annual mobile costs business and personal customers will be able to save at least 20 to 30%.

Compass Communications, which leases capacity on Vodafone's mobile network, said that its competitive pricing plan was targeted at attracting customers away from existing networks.

In the mobile market Compass' push comes at a time of quick change.

By the end of the month Telecom is due to launch its new XT mobile network, on which it said that over the years it had invested $574 million.

It was confirmed by NZ Communications, the company behind New Zealand's third mobile phone network, on Monday that it would be using the name 2degrees and launching in August.

Today Compass Communications told that the price of its mobile-to-mobile calls was as less as 25c a minute, with monthly access costs starting at $15.