HanseNet drops IPTV fees on basic tier

August 26, 2008 - German telco HanseNet has decided to offer the basic package for its "Alice Home TV" IPTV service for free to customers of its double-play service offering broadband and telephony, in order to boost uptake.

The basic package offers over 70 TV channels and previously cost €9.95 per month, while the double-play package costs €29.95 per month. The offer is available to both new and existing customers, with existing customers required to switch to the new deal within two months. “We have revised our strategy,” HanseNet manager Michele Novelli told German newspaper Die Welt. “Sooner or later our competitors will certainly respond with similar offers.”

Ms. Novelli added that HanseNet is not planning to drop tariffs any further: “The price war can’t go on forever. If the price is less than the cost, no one can hold on.” The telco has so far acquired around 20,000 subscribers for its IPTV service, while incumbent telco Deutsche Telekom has around 250,000. HanseNet is a wholly-owned subsidiary of Telecom Italia.