Grimwood Davies Limited CEO Eddy Lee said the D-fone was the first true decentralised Internet phone that did not rely on a PC for its Internet interface.
It allows international and ISD call costs to be dramatically reduced – by up to 95 per cent.
Essentially a PC, modem and phone handset in one, D-fone looks and operates just like a normal telephone.
Businesses and homes using D-fone can call anywhere in the world for the price of a local call to an Internet service provider.
To date, Internet telephony has been constrained by the need for cumbersome phone-to-phone adapters and PC interfaces.
The D-fone compresses traditional phone analogue signals into digital then back to analogue again.
This means users can call other people on normal phones and still benefit from cost reductions.
Mr Lee said digital subscriber line technology would become standard in homes and businesses within eighteen months.
DSL allows for continuous connection to the Internet without the need to redial.
He said the service would make D-fone even more convenient.
Mr Lee said D-fone was also the first Internet telephone to solve sound quality, signal delay and signal distortion problems with voice quality comparable to standard STD and IDD calls.
Current Internet telephony is plagued by a minimum two second transmission delay which produces the echo and lag times that can frustrate users.
D-fone inventor Lewis Lu said patented system-on-chip architecture allowed for two-way telephony with a signal delay of just one quarter of a second.
The same chip has also solved distortion and crackling problems.
The D-fone will offer coverage to more than 200 countries with Australia-wide marketing commencing during April.
Mr Lee said the company had already received orders from the UK and Europe.
“There will be add-ons including a home security function and virtual video conferencing,” he said.
Mr Lee said a D-fone traveller’s phone that was “slightly bigger than a mobile” was also under development.