Free Broadband Provider Shakes Up Telco Market

New challenger brings free broadband with a homeline for under $50 a month

A free broadband service was launched today bringing Kiwis a better deal for their home telco needs.  Market newcomer Flip  www.flip.co.nz provides 5GB of free broadband when a homeline is bought for just $49.95 a month.*

“Flip believes Kiwis deserve fair pricing and no contracts,” says Head of Flip Marketing, Scott Hoogerbrug.
“We have all put up with paying far too much for far too long.  By introducing free broadband with our homeline services, we are finally bringing New Zealand in to line with what people are paying overseas”.

A 2011 survey of OECD countries showed New Zealanders paid more for their broadband and homeline than 33 other countries surveyed.**

Hoogerbrug says Flip is challenging conventions by committing to provide free broadband and doing away with contracts and complex pricing models, instead offering a ‘pay for what you need’ approach more familiar to pre-pay mobile customers.

“Flip is not your typical telco.  We want to shake the market out of its complacency, give people the ability to manage their own accounts online and be in control of their costs,” says Hoogerbrug.  “There’s no contracts with Flip, just easy online account management, cheap calling and free broadband”.

He adds that intuitive pre-pay online services will make it easier for consumers to budget for their phone and broadband and avoid the risk of ‘bill shock’ at the end of the month.

“We’re taking an up-front and honest approach to our services.  Pre-pay means there’s no nasty surprises,” concludes Hoogerbrug.

Flip’s service is currently available to almost 60% of New Zealand households and the company has plans to extend in areas where demand is high. 

Flip is a business in the CallPlus group of companies, operating independently from any other company within the group.

*$49.95 a month includes homeline and 5GB FREE broadband with no contract terms.  A one-off installation fee of just $49.95 is required to join Flip.

**source: OECD Directorate for Science, Technology and Industry survey September 2011. 
http://www.oecd.org/internet/broadbandandtelecom/oecdbroadbandportal.htm
Chart  4c. Range of broadband prices per megabits per second of advertised speed, including line charge, September 2011 – USD PPP