£20 for 38 Mbps broadband – not bad from Vodafone UK

Vodafone has been playing around with its broadband packages, continuing its aggressive quest to steal customers off competitors.

Aside from being cheaper than most deals around, the offer also includes minimum speed guarantees, phone line rental, six months of free anti-virus software and a free wireless router. On the surface it does seem like a good deal, we haven’t found uncovered anything scary just yet, and could provide a suitable challenge to the mainstays of the current UK broadband landscape.

For the moment there are two packages listed on the website, 38 Mbps for £20 and 76 Mbps for £25. These are for current customers however, it increases to £22 and £27 for those who don’t have a Vodafone mobile contract, which is another interesting idea. Imagine that, a telco which is actually prioritising and rewarding current customers, it almost seems like a ridiculous notion, but we like it. And the full-fibre offering hasn’t even been introduced yet.

The speed guarantee is a feature which looks like it is starting to permeate into the mainstream, as Vodafone offers a guarantee of 25 Mbps or 55 Mbps respectively. Should Vodafone fail to meet these obligations, customers will be entitled to a 15% discount off their next monthly bill. There is some small print when the service is set up, for example should sync speed be below the speed guarantee stated customers may be able to get a further discount, but you should expect the occasion loophole.

Another aspect of this deal is the introductory offer for home security solution. Anti-virus software F-Secure will cover up to five devices for free for the first six months, before an annual cost of £39.99. Anti-virus software has never really been given the time-of-day by consumers to date, however with more of our lives traversing into the digital realms, consumers are starting to become more aware of the risks.

For a telco, this should be viewed as the convergence dream. Instead of trying to bully its way into a settled industry, like those who are venturing into the risky content game, Vodafone is adding value onto the connectivity deal. It is a logical step, and a useful product to bundle into the convergence mix. You could liken it to Apple with its insurance offering.

AppleCare is a product segment which seems to pull in huge amounts of cash for the iLeader. And while it isn’t flash, overly complex or ground-breaking, it is a logical step. If someone buys an expensive device, they will probably want insurance. When someone buys a broadband package, they will probably be open to some sort of security proposition. Telcos are central to the lives of the consumer in their own way, therefore there is an opportunity to build on that relationship. Security is an area the telco can add value without having to be a disruptor in a new segment.

Although Vodafone has suffered in recent years, for some it is inconceivable Vodafone was once the top mobile brand in the UK, it is fighting back with some sound investments. Customer services has been getting a revamp, and while it is still not perfect it is heading in the right direction, coverage across the UK has improved and entering into the giga-speed broadband game with CityFibre is a move which has its plaudits.

Vodafone is in a solid position, which looks like it is only going to get stronger. As soon as the lights are switched on in the gigacities, this telco could make quite a splash.

  • Cable Next-Gen Technologies & Strategies

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