The company aims to sign up more than one million broadbandcustomers by 2010, despite its relatively late entry into themarket. It hopes to sign up 600,000 users over the next six monthsand has set aside a pound(s)9m promotional budget. The service willlaunch next week with the boy band Westlife appearing in itsadvertisements.
The Post Office will use its 14,000 branches to make its mark inthe sector and will initially target its 400,000 telephonycustomers, a large number of whom have expressed interest insourcing more communications products from the Post Office. Thecompany has already signed up 1,000 broadband customers after amonth-long trial in 124 stores. It is targeting late broadbandadopters, as well as customers who are fed up with other suppliers,most notably Carphone Warehouse. At pound(s)15.95 a month, PostOffice broadband will not be the cheapest but there will be no"rural surcharges" - fees which vary according to where a user isbased. BT will provide the Post Office network.
The Post Office believes its target broadband market - the over-50s, who already account for about 25 per cent of internet users,and people who want to pay in cash - is worth nearly pound(s)500m.It claims to have identified six million families which have yet tosign up for high-speed access.
However, Steve Weller, of price comparison website uSwitch, said:"The Post Office's target will be hard to meet. Only TalkTalkmanaged to reach such a high number of customers in a short periodof time but that was by offering a 'free' product.
"With so many other established broadband players, it will beinteresting to see how the Post Office fares in reaching its goal."
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