Telecom Lead Asia-Pacific: In order to offer free access to fixed-line broadband, Optus has unveiled mobile plans for its customers, indicated intense competition among carriers and the growing importance of bundling as a pricing strategy.
The operator said the plans, which follow the launch of a television advertisement campaign last week, were the first in a series of initiatives to deliver more value to subscribers.
Customers signing up to Optus’s $89 a month timeless” mobile plan will be offered 50 gigabytes of free home broadband each month on their 24-month contract.
Optus will also offer 50 gigabytes of data free to business customers on a similar mobile plan and to customers on its $60 a month home advantage” landline phone plans.
For telcos, bundles are attractive because they help reduce churn” rates, as consumers find it harder to abandon carriers providing them with multiple services.
The announcement comes after the Optus lost a high-profile case in the Federal Court to rival Telstra and the country’s biggest sporting codes. The operator hopes that the new plans will take the focus away from the ruling, in which the AFL, NRL and Telstra were successful in their appeal against its TV Now” service.
Overturning a previous judgement, the full bench of the Federal Court found that Optus was jointly responsible for initiating recordings alongside its customers and therefore the service breaches the Copyright Act. Optus is still considering whether to launch an appeal against the ruling in the High Court.
According to AFL chief executive Andrew Demetriou Optus was reprehensible”. He admitted the relationship between the code and the telco had deteriorated.
Optus director of consumer fixed line and national broadband network Anthony Shiner said the free broadband offer continued the carrier’s tradition of innovation and delivering customers more value.
Optus to buy Vividwireless for $230 million for WiMAX and TD-LTE spectrum
A few months back, Optus announced that it will buy Vividwireless from Seven Group Holdings for $230 million. Optus will acquire all of Vividwireless’ operations, customers, spectrum licences and its network. The acquisition will enable the company to own WiMAX and TD-LTE spectrum.