Pay-TV provider Foxtel adds broadband and phone calls to TV service for the first time

‘WOULD you like broadband with that?’ Pay-TV giant Foxtel adds new services to its TV offering as the competition for streaming subscribers hots up.

PAY-TV giant Foxtel has launched a fresh assault on new and upcoming TV streaming services, offering its channels bundled with broadband internet and home phone calls for the first time.

Experts say the bundles, offering up to 500GB in downloads, are designed to “outflank competitors” while also luring new customers with modest discounts.

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Foxtel chief executive Richard Freudenstein revealed the long-anticipated plans today, starting from $65 for existing customers and $90 for new customers on 50GB plans.

“Foxtel Broadband is specifically designed with entertainment and video in mind and maximises the value of a Foxtel subscription,” Mr Freudenstein said.

New tactics ... Foxtel CEO Richard Freudenstein has more plans to boost Foxtel’s offerings to customers. Picture: David Clark

The bundles, delivered with part-owner Telstra, include a home phone line with national and local calls, an ADSL internet connection, and the company’s own wi-fi modem.

The bundles will also include downloads for services including Foxtel Go and Anytime as unmetered, and new customer bundles will come with the 43 channels included in Foxtel’s Entertainment package.

Users will not be able to use a faster cable internet connection, however, as Telstra will not make the technology available, and users will have to pay up to $378 in installation and equipment costs on 12-month plans.

Fusion Strategy media analyst Steve Allen said the deals had taken “years to negotiate” and came at an advantageous time given the imminent launch of Netflix in Australia and the arrival of Stan, from Fairfax Media and Nine Entertainment.

“They’re trying to outflank competitors that come,” he said. “I don’t think it’s a game-changer but Telstra and Foxtel are trying to play to their strengths.

Rival company ... Netfilx is launching in Australia this year. Picture: AP/Paul Sakuma

“It certainly makes sense to be putting it into the marketplace right now when consumers are very aware of all the programming available now or soon to come on offer.”

Mr Allen said new customers would be most likely to adopt Foxtel’s broadband bundles, though demand would not be “overwhelming”.

“It’s designed to get more people in and I think it will be successful,” he said. “It’s not like they’re cutting their entry price in half but it is easier.”

News Corp Australia is a part-owner of Foxtel.