Networking manufacturer Netgear has struck a promotional deal with Telstra that aims to drive the adoption of broadband Internet in the small and medium business sectors.
Under the terms of the agreement, Netgear will offer a $60 rebate to customers that sign up for Telstra's BigPond Broadband Cable service. In turn, Telstra will be paying a commission to Netgear based on the number of new subscribers.
While Netgear is not out to make any money from the promotion, Ian McLean, Netgear's managing director Asia-Pacific, believes the widespread adoption of broadband access will create additional flow-on sales for Netgear's traditional channel.
"If you look at it, they say 30 per cent of broadband cable is shared by other devices in the home or office," McLean said. "That means there is considerable opportunities for Netgear and the channel to provide add-on products and services.
"Our channel partners can help SMBs to make the best use of broadband by helping them to choose the appropriate networking products up-front and providing the expert assistance and onsite support that many need."
Telstra recently lowered the price of basic broadband access to $59.95 a month as well as announcing it has committed $60 million in grants to stimulate and fast-track the development of new and innovative applications, tools or technologies for broadband delivery to Australian businesses and consumers under the carrier's Broadband Fund.
"While migration to broadband is inevitable, there is still a lack of knowledge of how it works, how it integrates with existing infrastructure, and what the real costs and savings are," said McLean. "It's all very well having great technology, but in isolation it's meaningless."
Telstra will be building on Netgear's strength in the home and small business marketplace to ramp up its broadband cable access, according to Mark Wilson, national sales manager of Telstra's Indirect Channels division.
"Netgear is widely recognised for its powerful but easy-to-use networking products, its large reseller base with expertise in advising on and installing the appropriate products, and its support structure," he said.
Meanwhile, Netgear has opened a new office in mainland China.