Lets look at it another way. Sell it for $299 to Telstra Customers and $399 to non Telstra customers. Its still a very good value PVR at that price.

In addition, there is actually not that much that requires you to pay any money for the T-Box. You just buy the device, there is no monthly charge, unless you amortise the $299 charge over a 24 month contract, and you get most of the content for free — you don’t even pay for downloads, as they’re unmetered (apart from YouTube). The only thing you do pay for is movies on demand.

But yes, they are attempting to use the device as a method to help make customers more ‘sticky’ and get locked into their broadband services ;)

I am looking forward to seeing what iiNet and Internode come out with, though, in terms of FetchTV.

If Telstra were to allow people to use the T-Box on other ISP broadband connections, my belief is that they would have to charge more than $299 for it. I think they are subsidising the device because it helps to lock people into their network etc.

If you have been renting movies through the T-Box for a couple of years and are maybe even watching some of Telstra’s own IPTV channels, it is much more likely that you will stay connected to their network for even longer or maybe even upgrade your plan if you’re using it enough.

However, I agree with you that this is a short-sighted view, stemming from the old network-centric thinking that a company like Telstra is slave to. In my experience, when you open your company up and give your customers transparency and openness, they are much more likely to reward you by engaging with you and returning to buy your services.

This looks like it is another attempt to ride a wave made by others and try to own it or build a paywall around it, just like they tried when that pesky internet arrived.

It looks like an xbmc implementation with a shopping cart hook added to every item.

They could (given their market dominance) come up with some great technology at cost effective prices, but only ever seem to use technology for funnelling users down their pipes.

No thanks, I would rather pay a bit more and have my own xbmc box and get content anywhere I choose thank you.

However… I personally believe Telstra are making a mistake by only allowing it to be used on the BigPond network.

Why not try to create a “halo” effect?? Sell the T-Box to everyone and then let them decide to move to Telstra when they are good and ready?

I am NOT a fan of Telstra, but this product appeals to me. I would love to be able to try this product and if I like it, move to a Telstra broadband plan where I can take advantage of the IPTV and Movie downloads in an unmetered environment.

Due to my current ISP contract, I will not be purchasing a T-Box and as a result, it becomes less likely that I will consider Telstra when my contract expires.

If Telstra wants to grow their customer base, this is just one way to do it.