Home > Communication > Vodafone Price Cuts Threaten Future Viability Of NBN

Vodafone Price Cuts Threaten Future Viability Of NBN

Lastest data out of New Zealand has drawn parallels to Australia’s NBN rollout, as recent reports reveal Vodafone’s new price cuts could threaten the project’s future viability.

According to The Australianin the six months to December last year New Zealand’s NBN counterpart, Chorus, lost 33,000 customers largely to mobile broadband and 4G connections.

Spark, a NZ telco – who sells ADSL, FTTP, FTTN and 4G [mobile broadband] connections – states its mobile broadband connections have jumped to 84,000, from 72,000 the year before.

The company affirms that 15% of its customer base has switched from copper ADSL to mobile broadband.

Spark must purchase its FTTN and FTTP connections from Chorus, however, the company is reportedly more incentivised to sell mobile broadband where it makes a higher margin, as it forgoes the need to on-sell from Chorus.

A Chorus spokesperson states it is losing customers to mobile broadband offerings from Spark.

In Australia, Vodafone has announced it is offering discounts of up to 25% across its internet products, following the NBN’s recent wholesale price reductions.

The telco is cutting the price of its 50Mbps package from $95/per month to $70.

Vodafone has revealed it is slashing its 100Mpbs plan from $100/per month to $95, and its 12Mbps pack from $70 to $60/per month.

You may also like
Ex Myer CEO Defends Former Profit Guidance
Macquarie Downgrades Telstra Despite Share Surge
Kogan Shares Wobble, Full Year Profit Up 277%
Amazon Misleading “One-Day Delivery” Ad Banned
Telstra Shares Up 6% Despite Profit Slump