ASX-listed Vocus – best known in NZ for its Orcon and Slingshot brands – is relaunching budget ISP Flip with a $15 UFB fibre offer.
That’s $15 per week, so it’s $60 per month, or at least every four weeks. There’s also a $30 setup fee.
Vocus says the $15 weekly or fortnightly billing options will help those on a budget, and as such it’s pitched as a “response to Covid” by local Vocus exec Taryn Hamilton.
Your $15 a week gets you unlimited data and a respectable 50 megabit per sec UFB fibre connection in Chorus areas (roughly 80 per cent of urban areas with fibre) and 30Mbit/s elsewhere.
The new plans are also contract-free – giving Flip a jump on perhaps its closed competitor, Spark’s budget-brand skinny, which requires a 12-month contract for the best price ($73/month) on its cheapest fibre plan.
Skinny does offer cheaper broadband plans for those willing to go with 4G fixed-wireless, at $39 and $49 per month, but each comes with a data cap (60GB and 120GB, respectively). Its unlimited 4G fixed-wireless plan costs $65/month.
The Flip relaunch is Vocus’ second major brand play of 2020 after it bought Stuff Fibre in May for an undisclosed sum (Stuff CEO Sinead Boucher said in August it was “not correct” to view a Vocus ASX filing that included the line “$7.7m [NZ$8m] was paid in relation to Stuff Fibre New Zealand” as a revelation of the sale price).
Stuff Fibre’s 20,000 subscribers took Vocus NZ’s total customer count to around the 225,000 mark, cementing its number three spot in the fixed-line market behind Spark (around 700,000) and Vodafone (around 420,000), and ahead of 2degrees and Trustpower (both on around 120,000).
In its previous incarnation, when it offered phone line plus “free” copper broadband for $50 a month, Flip had around 25,000 customers, Hamilton says.
Hamilton says for a long time Flip steered away from fibre, as the installs were tricky and would have introduced complexity into the low-cost ISP. But now he says, more than 60 per cent of homes already have fibre installed, and new installs are normally pretty straightforward.
He says that in order to offer fibre so cheaply, the ISP has stripped back its offerings to a single plan.
Meanwhile, at the top end of town, Vocus’ Orcon brand is the only top-tier ISP that has chosen to sell plans based on Chorus’s superfast new Hyperfibre product, which has expanded from a pilot to a nationwide rollout this week.
In August, Vocus reported strong numbers for its NZ business amid the pandemic.
Its local revenue rose 6 per cent to NZ$398.8 million for the year to June 30, while operating earnings rose 4 per cent to NZ$65.4m.