ISPs need to think of new ways to keep customers on their networks once the National Broadband Network (NBN) goes live, according to telco analyst firm, Telsyte.
“What we are seeing is the propensity to churn under the NBN,” Telsyte research director, Foad Fadaghi, said at the CommsDay Summit 2011 yesterday. “This is causing a fair bit of angst in the industry.”
Churn refers to subscribers switching telecommunication providers.
“What we are seeing is various ISP users are considering moving to other providers under the NBN environment,” Fadaghi said. “We think there is a need for strategies such as long-term contracts and value-based bundles to try and address this issue for ISPs.”
Broadband service providers have been flogging bundle packages, usually for home phone and broadband, for some time and are now ramping up their efforts.
Telstra has released bundles with its T-Hub or T-Box products. Meanwhile, Optus introduced a 1TB download cap option for its Fusion bundle plans late last year.
But extending contract terms beyond the standard 24 months has yet to pick up as a trend.’
Seeing the writings on the walls, some ISPs are expanding their competencies to add value to their broadband services.
Perth-based ISP, iiNet, set up its consumer products development division, iiLabs, last year to create broadband-related products to provide incentive for existing customers to stay with the company [[artnid:378266.
iiNet recently released its BoB aggregated modem, router and phone device. It is also looking into developing a Android OS VoIP handset and IP surveillance products.
