AUCKLAND, New Zealand, June 6 (UPI) -- New Zealand ISP Orcon Internet dropped the price of its broadband service to below that of dialup service.
The new NZD19.95 (USD12.55) monthly rate is expected to trigger a new round of price jockeying as Orcon attempts to build on its No. 4 position among ISPs in the Kiwi market.
Company officials said in a news release that although the offering was below cost, they hoped to build up a customer base that will be applied to coming joint efforts to build up a new broadband infrastructure.
Orcon is No. 3 as a broadband wholesaler and sees the infrastructure expansion as setting the stage for further wholesale growth.
"In order for us to get as many Kiwis on true broadband under LLU (local loop unbundling), we need scale to justify our investment plans," explained Operations Manager Scott Bartlett. "We are partnering with a number of other ISP's to wholesale off the new network, but a large part of our motivation behind the new $19.95 broadband plan is to bring new customers to Orcon who have the desire to support a Kiwi company."
