Price of broadband driven down by competition

WTM 2003 Special: Comtec says its agency broadband solution has forced the leaders in the broadband market to lower their prices.

Comtec chief executive, Simon Powell told TravelMole: “We see ourselves as the low cost carrier which has entered the market without large overheads, and we are forcing the traditional carriers to react to these prices. Unless CCL had come to the market place they [the leaders in the broadband market] would not have had a reason to drop their prices.”

Comtec launched its communication arm, CCL in May, with Daman Singh (pictured) at its head. Mr Singh says Comtec recognised a need among independent agents for an affordable broadband solution. He told TravelMole: “NTL and Telewest launched expensive broadband packages, so we consulted with independents like Worldchoice and Midconsort and came up with a less expensive package.”

CCL offers an agent boradband package of GBP69 per month, which is a managed broadband connection that includes two EasySell selling system add-ons. Comtec says it already has 100 customers for its broadband packages, and expects to be able to announce a “well-known operator” that is migrating to its broadband solution from a competitors system soon.

Broadband competitor, Telewest has recently launched a broadband package that is cheaper than its original offering, starting at GBP29. Commenting on the new reduced-priced Telewest products, Mr Singh told TravelMole: “I have had a look at this GBP29 product and it doesn’t have a router and it is unmanaged, so when there is a problem agents have to call a premium rate number.”

He added: “They [NTL and Telewest] would struggle to meet our prices and service.”

In addition to adding more broadband products, Comtec has launched an online version of its management system, TravelCat.

According to Comtec chief executive, Simon Powell, the new management system, called TravelCat Web will be popular with younger travel consultants who are used to working in an internet format. “The old system was text based and looked like Viewdata. But this new one is a web based display. The functionality hasn’t changed – it just a new look and feel” he told TravelMole.

Through TravelCat Web agents get connectivity to Viewdata and the GDSs. It has Windows-style point-and-click screens, which can be customised by agents to adopt their corporate identity. The first customer, TUI-owned Budget Travel in Ireland, will have the system in the first quarter of next year.

Mr Powell said this is the first stage in the aim to create online versions of all of Comtec’s systems. He said: “This will mean agents will have one common interface into all Comtec’s products, which will integrate seamlessly.” Comtec’s other software solutions cover areas such as agency search systems, e-commerce, online content and point of sale solutions.

Read our previous stories:
11-Nov-2003 Telewest makes broadband cheaper
9-May-2003 TravelMole Interview: Simon Powell, chief executive, Comtec
15-Jan-2003 Comtec solution provides live sales analysis