TelstraClear raises the bar

TelstraClear is stepping up pressure in the internet market with a new "triple-play" package that offers significantly higher speeds at lower prices.

The company has announced a series of new "InHome" residential and business packages which include a phone line, SkyTV and high-speed internet access, starting at $91.90 a month.

The packages are available only to customers with access to TelstraClear's fibre network in Wellington, Christchurch and Kapiti.

What is particularly notable about InHome is that its internet component comes with a minimum download speed of 2 megabits a second, up to a maximum of 10Mbps, or about 250 times faster than dial-up - making it the fastest residential service available in New Zealand.

The fastest speed Telecom and its wholesalers offer is 2Mbps.

TelstraClear's basic 10Mbps package costs $161.90 a month.

Moreover, the InHome packages also offer an upload speed - essential for users sending large files or updating their websites - of 2Mbps, which dwarfs Telecom's speed of 128 kilobits a second.

Observers say TelstraClear's speed increases are a deliberate ploy to spur Telecom into a similar move.

"They're doing this to say this is what Telecom needs to be doing as well," said David DiProse, president of the Internet Service Providers Association and general manager (regulatory) for iHug.

A Telecom spokesman would not comment on the company's reaction to TelstraClear's offering.

The price of the basic InHome package is about $52 a month cheaper than a comparable combination from Telecom and SkyTV.

But at only 200 megabytes, the package has a much lower data download limit than Telecom's comparable offering of 10 gigabytes.

InHome packages get more expensive as the data limit is increased, although overall prices are still lower than competitors'.

TelstraClear InHome package

* Includes phone line; digital TV with 28-channel SkyTV package; broadband internet with a 2-megabit-a-second download and upload speed, 200-megabyte data cap. Cost: $91.90 a month.

Doing it yourself

* Telecom phone line; digital TV with 29 channels from SkyTV; Telecom broadband internet with a 2-megabit-a-second download and 128-kilobit-a-second upload speeds, 10-gigabyte data cap. Cost: $144.41 a month.