2degrees moves into broadband

2degrees could now offer customers the full communications service they have been waiting for. Photo / Thinkstock

Auckland-based telco 2degrees has launched broadband under its own name today, adding to its mobile offering and competing for market share.

The company has begun by offering two residential broadband plans - 80Gb for $69 and an unlimited plan for $89, with new and existing 2degrees Pay Monthly mobile customers receiving a discount on their plan.

Stewart Sherriff says 2degrees customers have been asking it to become a 'full service provider'. Photo / Michael Craig

2degrees chief executive Stewart Sherriff said the company's purchase of internet provider Snap earlier this year had allowed it to fast track its broadband market entry, adding that he was pleased the business could now offer a full communications service to its customers.

"Today we see one of our key strategic goals come to fruition - providing both mobile and broadband services to our customers," Sherriff said. "Becoming a full service provider is something our customers have been asking us for - particularly as Kiwis continue to embrace more data intensive lifestyles and move to UFB fibre services."

Although financial terms of the sale of Snap was not disclosed, it is understood the deal was worth around $26 million. Snap's broadband service had been marketed separately to 2degrees mobile service, however this has now changed, with all of the services combined under the 2degrees brand. Sherriff said this was due to customer feedback that the broadband market was too complex, and he said marketing under the one brand simplified things.

"With residential and enterprise customers now able to access 2degrees broadband, and business customers shortly, we are now well positioned to compete in all segments of the market to support our customers' growing digital needs," he said.

See a 2Degrees promotional video outlining the move into broadband here:

As part of its offering, 2degrees has also joined with Sky TV to provide customers with the on demand television service Neon, which it is offering free for the first six months.

"In a world where content is king, we're excited to partner with Sky Neon, a premium content provider which will see our customers get unlimited access to a world of leading movies and TV on demand - and it's all on us for the first six months," said Sherriff.

He said it was almost six years since 2degrees changed the mobile industry and he said it intended to do the same with broadband.

A snapshot of 2degrees broadband:
• 80GB plan - $69
• Unlimited plan - $89
• Fibre customers can upgrade their speeds for between $10 (100/20) - $50 (200/200)
• Optional home phone bundle for unlimited NZ and Australian land line calls from $15 p/mth

2degrees' pricing of $69 for 80GB and $89 for unlimited broadband exactly matches rates offered by its rivals Vodafone and Spark.

Sherriff said 2degrees could now offer customers the full communications service they have been waiting for.

"Today we see one of our key strategic goals come to fruition - providing both mobile and broadband services to our customers. Becoming a full service provider is something our customers have been asking us for - particularly as Kiwis continue to embrace more data intensive lifestyles and move to UFB fibre services," he said.