Chello launch will put pressure on pricing

The launch this week in New Zealand of chello broadband by Telstra Saturn has the potential to cause a paradigm shift in the broadband market.

The launch this week in New Zealand of chello broadband by Telstra Saturn has the potential to cause a paradigm shift in the broadband market, says IDC Internet researcher Pat Pilcher.

"Chello provides flat-rate broadband for the first time in the New Zealand market," he says.

"Combined with the aggressive stance of Walker Wireless in the SME (small- to medium-enterprise) market, this will eventually force Telecom to reassess the pricing of Jetstream.

"Chello is also rapidly partnering with local content developers such as the Met Service and Download TV."

Telstra Saturn chief executive Jack Matthews says chello will give customers high-speed Internet access to local and international content, including content which is exclusive to chello subscribers.

"Chello offers a truly fast Internet connection an 'always on' service, and the unique benefit of one low flat fee per month for unlimited high-speed downloads," he says.

The service is priced at $90 per month, with a one-off installation price of $99 for a cable modem. Telstra Saturn is offering a bundled chello-phone line service for $109.95 a month.

Chello broadband nv, a Dutch company, is active in Europe, Latin America and Australia.

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