How low can Telecom Sink?

Forums › Spark New Zealand (including Skinny and BigPipe) › How low can Telecom Sink?

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daman88

81 posts

Master Geek

#374480 30-Aug-2010 19:06

I guess that when you signed up, you are abiding their TAC, they can change your plan etc with notice.....

Ah well, will get the double up offer since other ISPs are pretty much the same..... i also heard a lot of critism of other ISPs speed in comparison to Telecom.....I guess i will just stick to Telecom

tardtasticx

3075 posts

Uber Geek

#374486 30-Aug-2010 19:32

robbyp:

I can see this from both sides. I have always just purchased my own modem, and avoided any contract. But if you continue to use them for 24 months, then you get a free modem out of them. They only give free modems out to new cusomters who have never been with them, when they have got a special deal going, and it is one per cusomter. So if you switch to another provider and then go back to them you wouldn't qualify for the modem. ALL ISPS do this, so it isn't just telecom. I am atually surprised they actually gave you a send free modem, but perhaps that is becuase you have been with htem for so long.

Not exactly true. We've been with Telecom for years, on dial up before broadband and even signed up for 1GB a month. I have absolutely no freaking idea how we made that last. When Big-Time first came out, Telecom were door knocking in our area and convinced us to sign for 24months and we get a free wireless modem. We did it, and we swapped to big-time on the day also. So we have been their customer for close to 10years with internet and since mum and dad first moved in together in the dinosaur ages, and we got freebies. Since then Big-Time has finished and they broke their end of the contract so free modem for us and freedom. :D

munchkin

939 posts

Ultimate Geek

Trusted

#374499 30-Aug-2010 19:53

Shoes2468: +1 for poor customer loyalty
Been a broadband customer for 5 years now and my old Dlink modem finally gave up the ghost, rang up and I had to sign up for 2 years to get another one, and its wireless, I dont need wireless but thats all they have + the rrp for the modem/wireless router is $99 however if I break the 2 year contract they charge $199, go figure. Tried to argue but its like talking to a brick wall with the offshore call centers, little to no understanding of customer loyalty. Useless.

The wireless modem RRP is $199, it's usually $99 for new customers, or free with a 24 month contract. There is a promotion on at the moment that makes it free for new TotalHome subscribers.

tumnasgt

83 posts

Master Geek

#374713 31-Aug-2010 09:43

munchkin:
Shoes2468: +1 for poor customer loyalty
Been a broadband customer for 5 years now and my old Dlink modem finally gave up the ghost, rang up and I had to sign up for 2 years to get another one, and its wireless, I dont need wireless but thats all they have + the rrp for the modem/wireless router is $99 however if I break the 2 year contract they charge $199, go figure. Tried to argue but its like talking to a brick wall with the offshore call centers, little to no understanding of customer loyalty. Useless.

The wireless modem RRP is $199, it's usually $99 for new customers, or free with a 24 month contract. There is a promotion on at the moment that makes it free for new TotalHome subscribers.

Telecom have discontinued the plain modem, and now the Wireless model is $99 for anybody, or free with a new connection (not only Total Home).

Shoes2468

785 posts

Ultimate Geek

#375008 31-Aug-2010 16:49

tumnasgt:
munchkin:
Shoes2468: +1 for poor customer loyalty
Been a broadband customer for 5 years now and my old Dlink modem finally gave up the ghost, rang up and I had to sign up for 2 years to get another one, and its wireless, I dont need wireless but thats all they have + the rrp for the modem/wireless router is $99 however if I break the 2 year contract they charge $199, go figure. Tried to argue but its like talking to a brick wall with the offshore call centers, little to no understanding of customer loyalty. Useless.

The wireless modem RRP is $199, it's usually $99 for new customers, or free with a 24 month contract. There is a promotion on at the moment that makes it free for new TotalHome subscribers.

Telecom have discontinued the plain modem, and now the Wireless model is $99 for anybody, or free with a new connection (not only Total Home).

Correct, Anybody can buy this modem for $99.95 (as per https://www.telecom.co.nz/wirelessmodem), yet if I was to break the contract they still would charge me a $199 early termination fee for a product worth only half that price.

boby55

1539 posts

Uber Geek

Trusted

#375011 31-Aug-2010 17:00

Shoes2468:
tumnasgt:
munchkin:
Shoes2468: +1 for poor customer loyalty
Been a broadband customer for 5 years now and my old Dlink modem finally gave up the ghost, rang up and I had to sign up for 2 years to get another one, and its wireless, I dont need wireless but thats all they have + the rrp for the modem/wireless router is $99 however if I break the 2 year contract they charge $199, go figure. Tried to argue but its like talking to a brick wall with the offshore call centers, little to no understanding of customer loyalty. Useless.

The wireless modem RRP is $199, it's usually $99 for new customers, or free with a 24 month contract. There is a promotion on at the moment that makes it free for new TotalHome subscribers.

Telecom have discontinued the plain modem, and now the Wireless model is $99 for anybody, or free with a new connection (not only Total Home).

Correct, Anybody can buy this modem for $99.95 (as per https://www.telecom.co.nz/wirelessmodem), yet if I was to break the contract they still would charge me a $199 early termination fee for a product worth only half that price.

Yes but you will find the extra $100 is for loss of profit, Aka breaking the contract early, not just the free modem.

Edit: Also for those that actually read the letter telecom sent, IIRC the letter went along the lines of this "If we do not hear from you by XYZ Date we will automatically swap you over to 20gb plan BY October 8?.

Nowhere did they state a official date to swap over just that they will swap you over by that date.

robbyp

1199 posts

Uber Geek

#375013 31-Aug-2010 17:03

Shoes2468:
tumnasgt:
munchkin:
Shoes2468: +1 for poor customer loyalty
Been a broadband customer for 5 years now and my old Dlink modem finally gave up the ghost, rang up and I had to sign up for 2 years to get another one, and its wireless, I dont need wireless but thats all they have + the rrp for the modem/wireless router is $99 however if I break the 2 year contract they charge $199, go figure. Tried to argue but its like talking to a brick wall with the offshore call centers, little to no understanding of customer loyalty. Useless.

The wireless modem RRP is $199, it's usually $99 for new customers, or free with a 24 month contract. There is a promotion on at the moment that makes it free for new TotalHome subscribers.

Telecom have discontinued the plain modem, and now the Wireless model is $99 for anybody, or free with a new connection (not only Total Home).

Correct, Anybody can buy this modem for $99.95 (as per https://www.telecom.co.nz/wirelessmodem), yet if I was to break the contract they still would charge me a $199 early termination fee for a product worth only half that price.

Are you sure anyone can just buy this modem, or do you have to be a telecom cusomter. The only way I can see how you can get it, is by signing up to braodband, as they don't have a buy now button. $99 isn't a bad price is it for a standalone modem and wireless.

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robbyp

1199 posts

Uber Geek

#375014 31-Aug-2010 17:04

tardtasticx:
robbyp:

I can see this from both sides. I have always just purchased my own modem, and avoided any contract. But if you continue to use them for 24 months, then you get a free modem out of them. They only give free modems out to new cusomters who have never been with them, when they have got a special deal going, and it is one per cusomter. So if you switch to another provider and then go back to them you wouldn't qualify for the modem. ALL ISPS do this, so it isn't just telecom. I am atually surprised they actually gave you a send free modem, but perhaps that is becuase you have been with htem for so long.

Not exactly true. We've been with Telecom for years, on dial up before broadband and even signed up for 1GB a month. I have absolutely no freaking idea how we made that last. When Big-Time first came out, Telecom were door knocking in our area and convinced us to sign for 24months and we get a free wireless modem. We did it, and we swapped to big-time on the day also. So we have been their customer for close to 10years with internet and since mum and dad first moved in together in the dinosaur ages, and we got freebies. Since then Big-Time has finished and they broke their end of the contract so free modem for us and freedom. :D

Yes, a win win situation for you. However if you sign up to another ISP, they will no doubt lock you into another contract.

cbrpilot

955 posts

Ultimate Geek

Trusted

Spark NZ

#375126 31-Aug-2010 22:52

Shoes2468:
I pay for a service which requires a modem to access it. Thats why you receive one when you sign up. If I don't have one I cant use the service i'm paying for.
e.g If my sky decoder breaks sky will replace it. ( I know what your going to say, different situation sky decoders are rented as such and you never own them etc.) but same principal applies without a modem I cannot access the service.

Shoes understand what you're saying, and it makes sense. However .... I don't think the overhead of managing the asset would be worth it for a $100 modem. I.e. you've got to track all the serial numbers, and recover the modem when someone terminates the service, or churns to another ISP. Most people would rather just own the device and be able to do what they please with it.

Telecom originally did rent modems way back when the entry cost for a modem was $1000.

My views are my own, and may not necessarily represent those of my employer.

raytaylor

4014 posts

Uber Geek

Trusted

#375910 2-Sep-2010 18:14

The other thing is that when you connect with telecom, they have to pay a connection fee to chorus (or a churn fee) which also costs, on top of the free or discounted modem they give you.

I also suspect that as a whole, telecom may make more money off you leaving a contract and then signing up with another isp as nowdays the other isp will also change over your line as well so the churn fees can be quite good for chorus making telecom as a whole still profitable from you.

Ray Taylor

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