Freshtel announced earlier this year that it was working with Binatone, a global telephone handset manufacturer, to co-develop Internet telephone handsets and other hardware.

The products will be distributed via Binatone’s existing retail network throughout the UK, in a staged implementation from August 2006. According to Binatone COO, Dino Lalvani, “One in four phones purchased by UK households is made by Binatone."

Freshtel will generate revenue from the rollout through a royalty on all hardware sold, as well as revenue from the pre-configured Freshtel Internet Phone account, included with all products. Freshtel already provides a wholesale 'white label' VoIP service in the UK which is branded and retailed by supermarket giant Tesco.