Foxtel has today announced something that could give them a huge shot in the arm – Broadband availability for Cable customers via the NBN.
It’s completely crazy that since the launch of Foxtel Broadband those people with the (then) best internet connections into their homes couldn’t sign up with Foxtel.
A million or more Aussie homes are connected to Foxtel via the Cable network – also known as “HFC” (Hybrid Fibre Coaxial). This network was installed by Telstra to provide Pay TV into Aussie homes, and was then also used to supply internet through Bigpond.
Cable Internet was amazing, 100mbps downloads, but only 2mbps uploads.
Foxtel Broadband became available first via ADSL, the slowest and worst internet technology we have, but more recently expanded to some NBN technologies. Today, it’s available to all NBN customers except those on Satellite or Fixed Wireless connections.
This means, those million or so homes with Foxtel Cable can now get a bundle deal from Foxtel for the Pay TV service and their Internet connection – all through the one cable.
The reason this is a real boost for Foxtel is the direct marketing capabilities – they know who has Cable in their home, they know which of their customers are connected via cable. So outreach to them, and possible connection could mean firstly a very low cost per acquisition, but additionally a big boost in Average Revenue Per User (ARPU) for those who connect.
It’s an ultra competitive market the fixed home broadband sector, however Australian’s have shown their love for a good bundle, so it’s likely this will perform well for Foxtel.