Jetstream deals take broadband subscribers to 100,000 says Telecom

By PETER GRIFFIN IT editor


Usually reticent on divulging its broadband customer figures, Telecom is talking numbers on its new Jetstream packages, which it credits for reaching 100,000 broadband subscribers.

Telecom claims it has picked up 11,000 Jetstream customers since it launched a new range of broadband packages on March 8 - around 2000 customers a week.

The new deals have also increased defections from Telecom's other broadband products, with 10,000 Jetstream customers switching their accounts to new plans.

That has seen Telecom's total Jetstream customer base grow by almost 20 per cent in less than two months, the company says, implying that a number of those signing up have crossed over from Telecom's flat-rate 128kbps (kilobits per second) Jetstart plan.

The telco was embarrassed last September when news leaked out that of its 48,000 broadband customers, nearly 75 per cent sat on Jetstart plans which are not classed as "broadband" speed by international standards.

The new growth spurt has not spelt death to new dial-up internet subscriptions. Telecom said it had signed up 2000 dial-up customers since the new Jetstream deals became available.

The growth in broadband take-up is the highest it has been for Telecom, but its head of internet and online marketing, Chris Thompson, said it was unlikely such growth could have been achieved before.

"It's a matter of timing. The economics of the product are right and people have enough comfort with the technology."

He talks of the "barbecue test" - ask how many people at a backyard party have broadband. More hands are going up these days, Thompson said.

Of new Jetstream customers, almost all were residential clients, and subscribers were heading mainly for the entry-level package or the high-end one.

Thompson said good demand for the $70 plan would begin to tail off.

"Demand will diminish over time. It's early adopters who are coming off Jetstream Starter [who are moving to that plan]."

Most of the new sign-ups are likely to have gone to Xtra.

"There's action across the board but Xtra's running the most promotion."

Telecom moved last week to extend to May 16 a free sign-up deal, which was to end on April 18, to take advantage of strong demand for the new services, which start with an entry-level $40 deal and go through to $70 at the high end.

Telecom had re-organised its call centres to handle a 50 per cent rise in internet-related inquiries.

"Front line" calls, formerly answered in Christchurch, are now answered in Auckland. The Christchurch team is concentrating on "online queries and rate plan changes".

Thompson said Telecom had a number of initiatives on the go to stimulate demand for broadband. It would look to sell wireless routers that could be installed by home users to turn their homes into wireless networks, allowing several computers to connect at once.



A music download service was being looked at but Thompson said the model was tricky to get right. Digital rights management to prevent copyright flouting was a major issue.

"Apple seem to have the right model with their linkage to a player [iTunes]," he said.

So far, demand for broadband to satisfy players of Xbox Live and PlayStation 2 online gaming services had failed to register.