TelstraClear shop open for business

TelstraClear has opened its first retail outlet as the battle for broadband internet customers expands beyond cyberspace.

Most internet access deals are sold online or through call centres. But with Telecom forced to unbundle the local loop, prices are coming down, so telcos have to reach new customers and not just through advertising or online promotions.

TelstraClear head of consumer markets Steve Jackson said the new store, in Courtenay Place in Wellington, would help sales while promoting TelstraClear products.

He said the store would have to be viable with sales in its own right but had a marketing and promotional role beyond that.

It had been open two weeks and was trading above expectations.

"It is comparable to Sony shops that sell Sony products, but is not concerned if the customers go away and buy the product elsewhere," he said. "We are happy if they buy here, but also if they go away and phone us or go to us online."

The store, open seven days, has six Apple iMacs connected to TelstraClear's high-speed broadband and video is projected on to footpath screens. Two more TelstraClear stores are planned, one in Christchurch and one in Tauranga.

Other companies, such as Telecom and Vodafone that are already established in retail outlets, are also boosting profile of their broadband products off line.

Xtra dial-up and broadband services have been sold at 142 standalone Telecom-branded stores.

Last week, Vodafone began selling 3G wireless broadband internet access at 180 standalone Vodafone stores, most of which are franchised.

And with its recent purchase of the copper wire internet service provider ihug, Vodafone has been negotiating with its stores to sell that service.

Telecom and Vodafone have a network selling their mobile products using companies such as Dick Smith and Noel Leeming, right down to local dairies.

But it is understood there are negotiations for retailers to begin selling broadband deals as well.

Sean Heenan of Vodafone said that while some consumers were happy to buy products such as broadband deals over the phone, some wanted to be shown the difference and how they worked.