Telecom launches residential UFB with cheapest option at $95 a month

Telecom Corp, which is in the process of overhauling its business, has launched its pricing plans for ultra-fast broadband, with the cheapest option available at $95 a month.

The country’s biggest phone company is offering national pricing plans for households, small businesses and schools over Chorus’ fibre network and is still working on products with three other UFB partners, it said in a statement. From March 28, households will have two levels of speeds available, and three data caps of either 50 gigabytes a month, 150 GB or 500 GB.

“We’re confident our pricing will appeal to customers given that they will enjoy the same amount of data, with all the added benefits of UFB, for not much more than their existing broadband plan,” Telecom retail chief executive Chris Quin said. “It’s an entirely new journey for New Zealand – we anticipate a few bumps along the way – but we’re committed to making the ride as smooth as possible for our customers and will be working hard to get it right for them.”

Telecom currently offers residential broadband packages over Chorus’ copper network ranging from $85 a month for a 50 GB data cap rising to $119 a month for a 500GB cap. It’s also running a 30 GB special at $75 a month.

The cheapest 12 month UFB option for households will be $95 a month for 50 GB at up to 30 megabits per second download and 10 Mbps upload, rising to $159 a month for 500GB on speeds of up to 100 Mbps download and 50 Mbps upload.

The UFB network is partly subsidised by the government, and led to the demerger of Telecom and Chorus to let the network operator take part in the programme. As part of the deal, Chorus had to ensure wholesale household prices would start at $40 a month or less for an entry level product, rising to $60 a month for the 100 Mbps product.

Small businesses will be able to buy UFB services on 24 month plans for $167.29 a month for 200 GB at speeds of up to 100 Mbps download and 50 Mbps to upload, or for $207 a month for the same speeds with free landline and unlimited data for a limited time.

School plans don’t have data caps are for 12 months with the cheapest at $129 a month on speeds of 30 Mbps to download or upload, or $159 a month at 50 Mbps.

Shares in Telecom rose 0.7 percent to $2.24.

(BusinessDesk)