German telco HanseNet is planning to offer its IPTV platform Alice homeTV free of charge. “We have revised our strategy,” HanseNet manager Michele Novelli told German newspaper Die Welt. Until now the company has charged €9.90 per month for its basic package comprising around 70 TV channels, but from Wednesday all channels will be made available for new customers without charge while existing customers can switch to the new deal within one to two months. The precondition is that subscribers order an internet and telephone connection with a domestic fixed-line flat rate for €29.90 per month.

With this latest initiative the Telecom Italia subsidiary pushes the competition to win broadband internet customers to a new level. “Sooner or later our competitors will certainly respond with similar offers,” said Novelli. Besides HanseNet, only Deutsche Telekom and Vodafone subsidiary Arcor currently offer IPTV services in Germany, with limited success. Telekom has only been able to win 250,000 customers, HanseNet 20,000 and Arcor even fewer. According to industry sources, Arcor is also considering offering IPTV to its internet and telephone customers free of charge.

Despite the fierce competition, HanseNet is not planning any further drop to tariffs. “The price war can’t go on forever,” explained Novelli. “If the price is less than the cost, no one can hold on.” He expects good customer service to become increasingly important to differentiate offers.

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