'Inertia selling' by some mobile telcos blunts fibre uptake

'Inertia selling' by some mobile telcos blunts fibre uptake

Sky TV's entry into the fibre broadband market may restore momentum

Telco network company Chorus has updated the sharemarket on the uptake of broadband connections, signalling that some mobile telcos are making inroads with fixed wireless "inertia selling".

Total fixed line connections declined by 13,000 to 1.36 million in Chorus' third quarter ended 31 March, led by copper-based broadband and voice connection, down by 42,000.

Fibre broadband connections increased by 29,000, the same as in the second quarter, however, total broadband connections declined by 2000 to 1.18 million. 

Chorus said fixed wireless providers Spark and Vodafone were continuing inertia selling campaigns to their fixed line customers. 

2degrees, meanwhile, was joining the fixed wireless party by starting to promote its own service.

Yesterday, 2degrees announced a major network upgrade with Swedish company Ericsson delivering both 5G and a major extension of 4G services.

Inertia selling is based around retaining current customers by offering them new or updated services.

Vodafone introduced new $40 4G fixed wireless plan with 60GB data during the period.

However, Sky TV began promoting fibre broadband to its existing customer base towards the end of the third quarter.

Chorus indicated the overall market decline was in part due to COVID-19's impact on net migration and population growth, which continued to constrain broadband adoption.

The return of students from holidays helped to restore some earlier disconnections.

Fibre uptake across the completed UFB footprint grew from 63 per cent to 64 per cent, with Chorus adding another 7000 activations.

Premium 1Gbit/s consumer connections also increased by 7000.

Average monthly data usage on fibre increased to 491GB, up from 460GB in December.

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Tags Vodafone2degreesChorusSky TVsparkboradband



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