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Forums › Spark New Zealand › Xtra Broadband pricing and packages are stagnating


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Topic # 26324 18-Sep-2008 10:31
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The current Telecom Broadband prices, speeds and data caps haven't changed since October 2006. In the same two-year space, the internet itself and what people use it for have changed dramatically. Why have we not seen any new plans in all this time? The only development has been the gradual rollout of ADSL2+ but even then the benefits of this are only apparent to some (i.e. those on plans with uncapped upload speeds who live within 2km of their exchange).





I'm on the 'Adventure' plan and 10GB seemed like a big deal in 2006, in 2008 its pretty minimal and the 128k upload cap basically rules out my participation in services like YouTube, which Telecom seem so keen on being associated with in their latest ad campaigns. When are we going to see change?







Steve

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  Reply # 165294 18-Sep-2008 11:01
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I've been on the Adventure plan since April 2003..Quite a long time, actually.




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  Reply # 165325 18-Sep-2008 13:03
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same here, have been with Telecom and xtra since they started, think that its about time for a better offer, especially with removing upload speed caps, what difference does it really make between 128 and 800* (* max speed for my exchange)

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  Reply # 165353 18-Sep-2008 14:46
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Not sure what plan you are on now, but if you use a lot of data have you considered the recently launched ‘business’ plans?

http://www.telecombusinesshub.co.nz/Internet/Broadband/Pages/Pricing.aspx  Basically they are the same plans as the regular ones, but for $10 extra you get much cheaper excess usage, as well as a 2Wire modem (no idea if they are better/worse than the Thomson ones) and priority helpdesk You don’t have to be running a business to sign up, and the excess usage charges are way cheaper than the regular packages that don’t throttle the speed at limit.  ($3/GB for the ‘advanced’ plan compared to $20/GB for the equivalent 'Pro Advanced')





Compare our range of plans at a glance:

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 Starter $53.293GB$4.44/GB

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Intermediate$79.9515GB$3.56/GB

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Advanced $97.7330GB$2.67/GB

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  Reply # 165439 18-Sep-2008 18:32
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I am on the Adventure plan, which is $59.95 per month for 10GB. The closest comparable plan under these business ones is $20 per month more for an extra 5GB. That doesn't sound like a particularly worthwhile alternative but thanks anyway.

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  Reply # 165466 18-Sep-2008 20:38
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I was on the 1gb plan sine 2004 then we got a letter in mail saying that teleom was changing there plans and change our plan to 3gb and thats the only change i have seen now i am on the pro advanced plan 30gb . its worth it but the cost sure is a lot :/

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  Reply # 165480 18-Sep-2008 21:46
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NonprayingMantis:...for $10 extra you get much cheaper excess usage...
$3/GB for the ‘advanced’ plan compared to $20/GB for the equivalent 'Pro Advanced')

$3/GB is still expensive compared to Xnet, Snap, Orcon, Slingshot et al.

As the OP said, Xtra Broadband pricing and packages are stagnating and this "Business" offer isn't going to change that.

Where is the market leadership we used to see from Telecom?

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Geek


  Reply # 165568 19-Sep-2008 09:23

I agree. Given the way theyre being thrashesd in the fixed line and mobile market due to their refusal to hurry up next generation fixed line networks, voip and wcdma etc you would think theyd need to do really strongly in at least one area...we saw glimpses of it with their latest tstick promotion.....

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  Reply # 165893 20-Sep-2008 23:40
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I think they keep their prices high so that they
 a) Make lots of money for shareholders
 b) Appear to be giving their competitors who they resell services to a fair chance. 

They cant wholesale a dsl line at $5 per month and then go and resell it at $6, when the wholesale customers also sell it at $6. The wholesale customers (orcon, slingshot...) would find it too hard to pick up customers and then go complaining to the telecoms minister because they have no margin. They cost more so they can give the competitors / wholesale customers a chance and keep the government authorities happy.




Ray Taylor
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  Reply # 165903 21-Sep-2008 02:08
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Telecom are screwed by being the dominant player, if they drop their prices, they they have to drop the wholesale rates aswell, since they are for some reason linked.

That means that everyone else will drop prices, and everyone ends up worse off. I would have hoped that they would get some room to move with the seperation but it seems not, or its a long time coming. :(




Richard rich.ms

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  Reply # 166162 22-Sep-2008 09:04
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That’s right.  It’s a little more complicated of course (whoever heard of simple regulations :P ) but essentially Telecom Retail legally has to make a certain margin on it’s access products.  If it drops it’s price so that it makes less margin, then Telecom Wholesale must also drop the wholesale price at which it sells to other ISPs. Any gains retail made through the lower price would be eroded very quickly by it’s competitors dropping prices. The regulation is actually encouraging higher prices (stupid isn’t it?).

The only way retail can legally try to compete is to use non-price measures (like the free security suite, and free Flikr pro for example)


 Having said that, with operational separation there will be a bit more leeway in terms of price (something to do with overall margins, rather than individual products – I don’t know the details), but it may take a while to happen.  If anyone has worked in a large company you know how much red tape bullsh*t there is to go through when making decisions and implementing changes.

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  Reply # 167088 25-Sep-2008 15:57

Well, as if in answer to this forum, check out the new plans on offer

http://www.geekzone.co.nz/forums.asp?ForumId=39&TopicId=26549



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  Reply # 167440 26-Sep-2008 21:25
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undecided: Well, as if in answer to this forum, check out the new plans on offer

http://www.geekzone.co.nz/forums.asp?ForumId=39&TopicId=26549


Hmm a dead link...?

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  Reply # 167441 26-Sep-2008 21:28
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@steve98, that's because the new plans are not public yet.




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  Reply # 167457 27-Sep-2008 08:39
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munchkin: @steve98, that's because the new plans are not public yet.

Can you give us any info on the plans?

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Reply # 167459 27-Sep-2008 08:53
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The plans were briefly posted here on Geekzone but at Telecom's request the information was removed - since it is a non-announced product yet they deemed the information as "confidential" and "commercial sensitive".

These changes should be unveiled earlier in October 2008.

This is also a reminder for people (specially Telecom and Vodafone employees, but anyone else really) about the possible consequences of disclosing proprietary confidential information here and any other forum. One thing is posting some information you got somewhere else, but another thing is posting information taken directly from internal networks...




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