Telecom keeps lid on TiVo details

Telecom won't spell out its deal with the new television device TiVo.

But it says consumers considering buying the $899 device and attracted by the free broadband offer - a key part of its appeal - need not worry it will be wound back.

It was announced last week Telecom had exclusive reselling rights for retailing TiVo, although with a new marketing campaign pending several aspects are still unclear.

"We'd look like complete muppets to put this into the marketplace when we are still looking at it," said Telecom broadband general manager Ralph Brayham. "For all the things you can criticise us for we are an incredibly conservative company when it comes to disenfranchising customers."

Telecom has about 60 per cent of the broadband market and the free TiVo downloads will be a marketing drawcard to increase its share.

Brayham - who oversaw the discontinued online shopping mall ferrit.co.nz - said Telecom had made a long-term commitment to the advanced TiVo technology.

But he says that under legal contracts with TiVo he cannot say if there is a time limit for the free broadband offer or a review process.

As well as interactivity between TV sets and the internet, the generous free broadband is a key part of TiVo's appeal.

TiVo provides digital video recorder technology like MySky or MyFreeview, but will earn revenue from unspecified pay per view movies and TV shows and yet-to-be-revealed advertising-funded content.

But Telecom will not take a share of that income.

TiVo is one-third owned by TVNZ and two-thirds by the Australian Seven networks.

It has a relationship with Yahoo!Xtra, which is controlled by Telecom and Seven Network.

Brayham acknowledged that consumers making an $899 investment in TiVo were owed more detail about the marketingoffer.

But he said that in the telecommunications sector offers were seldom downgraded.

"Value keeps increasing in this space - consumers are offered more for less."

TiVo could be greeted with optimism and not cynicism, he said.

"We are not gong to take it away. Television is the key part of a value-added services strategy."

But he was not ruling out changes.

"In our terms and conditions we are always going to have the right to change our mind."

TiVo was offering an attractive offer compared with competitors.

The details of that - such as TiVo exclusive programming and pricing for pay per view movies - had not yet been confirmed.

"We are not asking consumers to make decisions now or in the first week of November."

IN THE AIR

* TiVo is launching in early November.
* Telecom will take an unspecified share of the $899 cost for a set top box and offer its customers free broadband for downloads of movies and unspecified free advertising-funded content.
* It will take no share of TiVo's income from pay per view movies so income will dry up while it has an ongoing cost for free broadband for TiVo content.
* Telecom says it owes consumers more details of the TiVo offer before they pay $899 for a set top box.
* It would not disfranchise customers, though would not rule out changes.