Xtra capping upload speed -Won't cost them anything to remove cap

Forums › Spark New Zealand (including Skinny and BigPipe) › Xtra capping upload speed -Won't cost them anything to remove cap

richgamer

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#21872 9-May-2008 15:22

xtra's $59.95 10gb plan has a 128k upload cap. why doesn't xtra remove this cap and make the upload speed max. users won't be able to download anymore data so it won't cost xtra any more money. the advantage would be faster uploads and faster downloads. their $49.95 and $29.95 plans have a 128k upload cap too. the only reason i can think of them having this upload cap is because they don't want people to use voip like skype which works well with higher upload speeds and telecom doesn't want to lose phone calling revenue.

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#129682 9-May-2008 15:32

I'm guessing would be the same reason why all the other providers have different tiers of performance - 256kbps, FS-128kbps, FS-FS...

In many cases 128kbps should be enough for a VoIP call anyway.

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nzbnw

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#129683 9-May-2008 15:32

O really? Acutally it does cost more to deliver a FS/FS connection. The Wholesale rate will be more for this product, rather than FS/128k.

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#129725 9-May-2008 17:34

nzbnw: O really? Acutally it does cost more to deliver a FS/FS connection. The Wholesale rate will be more for this product, rather than FS/128k.

nzbnw

I believe not. The cost to deliver FS/FS vs FS/128 or 256/128 is all the same to Telecom. They just wholesale the FS/FS plans at a higher price. This is something of the old school; you will note that with N-DSL it is all FS/FS.

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#129790 9-May-2008 23:33

coffeebaron:I believe not. The cost to deliver FS/FS vs FS/128 or 256/128 is all the same to Telecom. They just wholesale the FS/FS plans at a higher price. This is something of the old school; you will note that with N-DSL it is all FS/FS.

The cost to Telecom as a whole perhaps, but considering Telecom Wholesale (who supply Telecom Retail under operational separation) must treat access seekers the same, and cannot discriminate in this regard, the cost to Telecom Retail, whom which the OP is posting about is higher than a FS/128k connection.

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#129794 10-May-2008 00:40

it's all about the money ... a somewhat slightly different kind of analogy - i was at the supermart the other day
1x maggi noodle pack = 45c
5x maggi noddle pack = $2.95

what the??

coffeebaron

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#129815 10-May-2008 09:33

nzbnw:
coffeebaron:I believe not. The cost to deliver FS/FS vs FS/128 or 256/128 is all the same to Telecom. They just wholesale the FS/FS plans at a higher price. This is something of the old school; you will note that with N-DSL it is all FS/FS.

The cost to Telecom as a whole perhaps, but considering Telecom Wholesale (who supply Telecom Retail under operational separation) must treat access seekers the same, and cannot discriminate in this regard, the cost to Telecom Retail, whom which the OP is posting about is higher than a FS/128k connection.

nzbnw

Yes, that's true; the wholesale price is higher; but my point is at the network level, there is no need for this price difference, thus there is no need for the wholesale price to be different.

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#129837 10-May-2008 11:50

Well, FS-FS can pull more traffic down as a FS-128 (whoms upload limits the downstread), which in turn pulls more than a 256-128kbps... I would say there most likely is a cost in terms of amount of bandwidth that is utilized.

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coffeebaron

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#129870 10-May-2008 15:17

cokemaster: Well, FS-FS can pull more traffic down as a FS-128 (whoms upload limits the downstread), which in turn pulls more than a 256-128kbps... I would say there most likely is a cost in terms of amount of bandwidth that is utilized.

Yes, but there is no real issues with local traffic these days; but that I think that has been one of the reasons in the past for this capped upload (and download) speeds.

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raytaylor

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#131130 15-May-2008 22:03

joker97: it's all about the money ... a somewhat slightly different kind of analogy - i was at the supermart the other day
1x maggi noodle pack = 45c
5x maggi noddle pack = $2.95

what the??

This reminded me of something my uncle used to say to me. He workes for the milk processing plant north of Hamilton. He said all blue top milk was the same. The only difference between the brands was the price, and that was determined by how many colors were on the label. It is more expensive to print more colours and hence forth the higher price for the same blue top milk.

Now in regards to noodle packs - you are paying an extra .70c for the extra large packet that these 5 smaller packs fits in.
I think supply and demmand, wholesale bulk buying deals and these smaller factors will probably be helped by the fact that maggi's wholesale salesman likes pack n' save because they share the same brand color of yellow or may have a bit of a crush on the buyer at countdown so they may have got a better bulk deal on the particular order. But the real factor is that there is an extra wrapper. Yep. Thats gotta be it

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nzbnw

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#131145 15-May-2008 23:37

raytaylor: But the real factor is that there is an extra wrapper. Yep. Thats gotta be it

Or, perhaps sumermarkets use these single packets as a loss leader....

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olof

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#136252 7-Jun-2008 17:07

The reason is historical and relates to how Telecom is required by the NZ Commerce Commission to wholesale broadband services to other ISPs and Telcos. In essence, the commerce commission requires Telecom to sell its UBS (unbundled bitstream service) to other ISPs at around $27 for FS/128 and $37 for FS/FS. (The $ amounts me be a little bit off, they are from memory. Can be looked up on the commerce commission site.)

The fact that FS/FS is $10 more than FS/128 is a historical glitch. I fully agree with you that it makes no sense whatsoever. The cost of providing a FS/FS service is the same as for providing a FS/128 one.

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#136341 8-Jun-2008 00:10

Also xtra cant sell things at a loss to get customers like other ISPs can, their retail prices are tied to their wholesales thru some competition thing, so if they drop the retail prices, they have to do the same with the wholesale, so other ISPs will still be cheaper then xtra.

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bitserf

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#136466 8-Jun-2008 17:16

My "FS/FS" delivers "FS/64kbps" for a few months now, leaving me in latency hell for gaming.

It intermittently goes back to "FS/FS", but resets to the pathetic rate I assume whenever last a Telecom technician has been on-site.

I'm going to give Vodafone a try, but I'm not that optimistic...

nzbnw

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#136476 8-Jun-2008 18:02

richms: Also xtra cant sell things at a loss to get customers like other ISPs can, their retail prices are tied to their wholesales thru some competition thing, so if they drop the retail prices, they have to do the same with the wholesale, so other ISPs will still be cheaper then xtra.

Do you know if that’s still the case with operational separation?

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richms

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#136491 8-Jun-2008 18:28

bitserf: My "FS/FS" delivers "FS/64kbps" for a few months now, leaving me in latency hell for gaming.

It intermittently goes back to "FS/FS", but resets to the pathetic rate I assume whenever last a Telecom technician has been on-site.

I'm going to give Vodafone a try, but I'm not that optimistic...

Mine did that with the crappy dynalink rta 1320 all the time. To make it worse, it was a actual 64k upstream so usable was more like 40. netgear was fine almost all the time.

Richard rich.ms