Are you thinking of getting Foxtel broadband?
Foxtel has stepped up to face the challenge posed by broadband to its business. It has introduced a wide range of Internet-based video services which can run on different devices. Foxtel anticipates that the times are changing. In the US, many cable subscribers are abandoning traditional television and the same is soon to happen here in Australia, even if television ratings are still good.
As part of its expansion plans, Foxtel is planning to become an Internet Service Provider next year. Customers can sign up for Foxtel broadband on the NBN or copper (Telstra Wholesale), but not HFC cable. Homes with an existing Foxtel subscription can switch to Foxtel for their broadband. It will all depends on whether Foxtel can give the right bundles and plans to its customers.
In order to compete with broadband giants Telstra and Optus, Foxtel must also offer the “triple play” of home phone, pay TV and broadband services. Some existing Optus customers are still paying for Foxtel on their bill even if Optus doesn’t offer Foxtel Pay TV bundles to new customers. Up to now, Foxtel still has no plans to become a mobile phone/broadband reseller. This is the biggest reason why Telstra and Optus bundles will become more mobile-centric next year. They’re doing this move to make it less attractive for their subscribers to switch to Foxtel.
Telstra has unlimited access to Foxtel content and its subscribers can access Foxtel on Xbox 360 and Foxtel Play. Foxtel needs to match this in order to stay competitive. Some Telstra customers now have unlimited access to Foxtel through Telstra. It will be interesting to see if Foxtel will come up with something in order to attract Telstra customers who may want to switch to Foxtel. Telstra may not do anything to discourage its customers from leaving Telstra when a better deal comes along. Foxtel should just offer discounts to ex-Telstra subscribers who are looking to upgrade to a second Foxtel box.
Foxtel subscribers often use its download and streaming services rather than third-party video services. If Foxtel offer unlimited downloads, then shouldn’t have monthly download limits. Foxtel’s Internet plans aren’t a great deal, but it hopes to attract new customers in its triple play offer.
Foxtel shouldn’t bother attracting customers away from Telstra and Optus. Instead, it should just make its plans and bundles right. If this happens, its customer will not abandon it, even if the NBN brings more online video services to their door in the future. Foxtel is still keen to fortify its position in Australian homes even if the Fibre to the Node plans of the government can reduce the NBN’s threat to the company.
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