Pipex to take on the 'free' broadband crowd
Pipex are not new to the cut-price arena, and according to the Telegraph are set to try and undercut a number of the other providers offering all inclusive telephone/broadband packages. Pipex does have a history of being competitive price wise, and was the first provider to break the £30 barrier for ADSL connections in February 2002, followed by an even cheaper product at £23.44 later in the same month.
This new deal appears to be a line rental/inclusive calls package for £12.50 a month, and an up to 8Mbps ADSL service for £6.50 a month. These figures are not confirmed yet, and it is unknown whether these apply to just exchanges Pipex has unbundled, or will apply across all exchanges where BT Wholesale IPstream Max is available. The deal looks set to get a lot of publicity with a £3m marketing campaign planned, with David Hasselhoff being the star of the campaign.
Pipex has around 311,000 broadband customers, and with its HomeCall operation a total of about 1,000,000 customers. Though reading through the Pipex section of our forums, reveals that not all are happy with the HomeCall segment (e.g. here and here). With the increase in competition in the bundle area, we expect to see more posts like this across a number of the providers. Traditionally marketing for telephone services has been more cut and thrust, than the relatively laid back attitude broadband has taken.