Foxtel who are under pressure in the content market has now moved to flogging broadband solutions as part of their bundle offering. The offer is nowhere as good as the $90 unlimited broadband package from Optus.
The new offering Foxtel starts at 50GB of data, home phone and Foxtel for $90 but you do need to buy a minimum 12 month contract. 100GB of data plus phone and Foxtel costs $95, 200GB of data, home phone and Foxtel goes for $105 and 500GB of data, home phone and Foxtel costs at $125 on a 12- or 24-month contract.
The service is already being labelled a “bad deal” by some media organisations.
Existing customers will be able to get the 50GB for an extra $65 per month on a new 12- to 24-month contract.
The new Foxtel Broadband are based on ADSL with the service delivered over phone lines, Foxtel customers who already have cable would notice a reduction in speeds for the worse.
Foxtel claims that in the future they will offer National Broadband Network (NBN) plans later this year.
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Described as a “Foxtel Hub” router/modem package users will also have to fork out an additional $110 for the modem. You also have to pay a $59 installation fee. If you’re a new customer, you’ll also have to fork out $150 to get the TV service switched on.
Optus offer an unlimited broadband package for $90 including free local and Interstate calls, iiNet offers a $50GB package for $65 a month while an Exetel 100GB package including a phone line will cost you $40.
Basic Foxtel, which includes 43 channels, with a standard home phone, including unlimited local and national calls, and a 50 gigabyte broadband plan, will cost $90 per month. With 100GB, 200GB and 500GB plans, customers will pay $95, $105 and $125, respectively.
However if you want movies from Foxtel or Live Sport you have to fork out an additional fee every month.
In comparison customers using the Fetch TV, Optus package can for $100 a month get all the Fetch TV services, unlimited broadband, and a vast array of content from Netflix for $100.
Right now Foxtel is facing greater competition, increasing the pressure to penetrate Australian households, which has been stuck below 30 per cent.
The move comes as international SVoD player Netflix plans to launch in Australia in March 2015.
In 2014, Foxtel slashed the price of several offerings in anticipation of greater competition. It cut the price of a basic cable TV package by 50 per cent to $25 per month however services are limited and users do not get premium sport or movies for this price.