Few takers for $15 subsidised internet deal

Wednesday, 6 September 2017

Spark is trying to connect 14,000 poor families to the internet with a chump change deal.

Telecommunications company Spark New Zealand is struggling to sign up thousands of families to its cheap internet deal.

The $15 for 30GB Spark Jump deal has 5000 subsidised connections on offer, but after one year they have only had about 500 families sign up.

Spark Foundation general manager Lynne le Gros says Spark considered making its Spark Jump deal for poor families free, but a hand out was not as valuable.

Spark Foundation general manager Lynne le Gros said the lower-than-expected pick up rate was due to challenges identifying the thousands of families that need the internet.

She said the telecommunications industry needed to collaborate to connect thousands of homes to the internet so school children can do their homework and not be left in the lurch.

Flip and Slingshot umbrella company Vocus Group's consumer manager Taryn Hamilton says its internet providers offer deals for all income levels, but its cheapest deal is still $55 a month.

Communications minister Simon Bridges said a National-led government would not fund private telecommunications companies to give poor families cheaper internet.

* Thousands of free modems for low-income homes**

But competitors are not playing ball.

Telecommunications giant Vodafone NZ does not offer a Spark Jump equivalent to target poor families without a connection.

Vodafone Foundation manager Lani Evans said its approach to helping disadvantaged children was more holistic.

'Price is only part of the picture.'

She said Vodafone NZ had allocated $20 million over the next 10 years to fund charity collaborations and internal accelerator and internship programmes to 'halve the number of young people at risk of exclusion'.

She said a subsidised deal for low-earning families was on the cards for Vodafone's future but it was not the foundation's primary focus.

Telecommunication companies Flip and Slingshot, that advertise as cost-effective providers, do not have specific offers for low-income families either.

Umbrella company Vocus Group's consumer general manager Taryn Hamilton said Flip and Slingshot's offerings catered to all incomes.

Flip's cheapest home phone and internet deal is $55 a month. Slingshot's is $60 a month.

Le Gros said families still refrained from asking for the Spark Jump deal because they were used to being turned away from internet providers.

Their typically bad financial repayments history meant they could not get a debit account which was required to sign up to most internet services, she said.

'They cannot do another 'no'.'

Spark Jump payments are made through Skinny Broadband prepay accounts.

Income information is not required to get the deal so as not to label the families as poor, le Gros said.

Le Gros said Spark wanted to work with other telecommunications companies, including 'fierce commercial rival' Vodafone NZ to break stigma and give internet access to those who need it.

Evans said her foundation would be willing to work with any individual, industry or political body that shared its vision.

The Spark Jump programme partnered with schools and community organisations to find names and contact details of families with children under 18-years-old and no internet connection, but many were left unidentified, she said.

Le Gros said a lack of awareness, not funds, was not the problem. Government funding would not necessarily help the cause, she said.

Labour ICT spokeswoman Clare Curran said, if elected, her party would consider investing in telecommunication companies to help fund programmes like Spark Jump.

Communications minister Simon Bridges said a National-led Government would not subsidise private telecommunication companies.

Bridges said: 'It is up to the market to provide the best deal on internet packages.'

He said his party's ultra-fast broadband expansion plan was 'a far cry from the poor internet access New Zealanders had in 2008 under Labour'.

Across the ditch, Australian internet provider Start Broadband has provided 4500 days of free broadband to families earning low incomes, typically less than AU$40,000 (NZ$44,000), through its Life Changing Connections programme.