Wireless broadband undercuts most dial-up deals

Wireless broadband telco Woosh hopes to upset the high-speed internet market with an aggressive new offer.

For the first time in New Zealand a broadband internet connection will cost less than the average dial-up connection - $19.95 a month.

Typically dial-up connections cost around $25 a month, although some are lower than Woosh's new price point, but marketing manager Sandra Geange said the special offer is far lower than the equivalent broadband service from Telecom.

"We've brought competition to the market and with this offer we can really grow customer numbers."

The service - usually $39.95 a month - offers a 256 Kbps service with 1 GB of traffic per month.

The equivalent Telecom plan costs $49.95 a month for customers who don't use Telecom for toll calls.

Users will have to buy one of Woosh's wireless modems to use the service. Geange said the company has reduced the price of the modem, typically $199, to $99, to lower the cost of entry.

"We've also launched our PC card modem for mobile users and that opens up a new market segment for us as well."

The PC card modem slots into a laptop and lets the user take the connection with them, although Woosh does charge a roaming fee for customers moving between cities.

"We're seeing a lot of pent-up demand for the cards from the small office, home office market and we're pleased to finally be able to fill that demand."

Customers can use one account across both devices if they wish, said Geange, so once they've bought the hardware the customer doesn't pay twice for the service.

Woosh has also been working hard increasing its coverage areas, said Geange. Woosh came under fire earlier this year from users who were unhappy with the service coverage in Auckland in particular. "We've put in 12 new sites around Auckland and have another two ready to go before the year's end."

Woosh has also launched its service in Wellington and Invercargill and is extending its reach in both those centres as well.

The company is still considering going public in 2005, but first plans to work through a series of milestones, such as introducing a voice service.