[TelstraClear] Do ISP's have a responsibility to inform Customers of new Plans?

Forums › One New Zealand (including Vodafone, WxC, Farmside) › [TelstraClear] Do ISP's have a responsibility to inform Customers of new Plans?

wreck90

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#82680 4-May-2011 08:47

Check this story out,

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10723201

"Internet provider TelstraClear kept a long-term customer on a plan with rates nearly 10 times higher than those offered to new customers.

For several years, the 2CLight company of Christchurch has been on a TelstraClear internet plan that charges about $20 for every gigabyte used over the monthly usage limit.

The telco's newer customers pay about $2 for every extra gigabyte used.

2CLight chief executive Simon Dyer has written to TelstraClear boss Allan Freeth, demanding a refund of $2470 - the amount he calculated as the difference between the rates in the past year."

Surely the customer is a moron for not monitoring that he was on the most appropriate plan?

He then goes on to say that slingshot is a much better deal. Good luck with that.

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#465134 4-May-2011 09:00

Legal responsability definitely not.

Moral responsability...I guess it depends on your outlook, but in my mind also no, so I agree with you. IMO it is up to the consumer to monitor and adjust their plans, contracts, for anything including ISP or other Telco services.

It's no different to any other consumer contract items. For example it is up to me to ring around and review my insurance requirements and costs, or power supply contract, or anything else like that

I do however know of a power company that annually reviews your situation and advise if there is something better they can offer. I see this as an additional service to gain and retain customers at their choice. I don't know if any Telco's do that however

Things change. People need to take some responsability for their own situation.

Lazy is such an ugly word, I prefer to call it selective participation

Tabuti

134 posts

Master Geek

#465146 4-May-2011 09:19

Do Telstra still offer the Old Plan?

If not they should have swapped him to the newer plans...

They would be very quick to change your plan if the old one was cheaper and the new more expensive

NonprayingMantis

6434 posts

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#465148 4-May-2011 09:24

I would say no.

Does any company have a responsibility to tell you are purchasing a product which works out more expensive?

Should I expect cottonsoft to tell me that I could have saved money by purchasing their 12 pack of toilet roll instead of the 4 pack? Do I have the right to a refund for all the money I have wasted over the last year by only buying the 4-pack?

NonprayingMantis

6434 posts

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#465149 4-May-2011 09:26

Tabuti: Do Telstra still offer the Old Plan?

If not they should have swapped him to the newer plans...

They would be very quick to change your plan if the old one was cheaper and the new more expensive

would they?
Do you have any evidence to suggest that?

Gigs

95 posts

Master Geek

#465153 4-May-2011 09:40

Totally the users responsibility to once and a while look at their bill and see what they're actually paying for.

Nety

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#465155 4-May-2011 09:41

Tabuti: Do Telstra still offer the Old Plan?

If not they should have swapped him to the newer plans...

They would be very quick to change your plan if the old one was cheaper and the new more expensive

IMHO no... I right now have a Fatso account which I am paying well under the current rate. It was a old plan they had. As long as I do not change it they will leave me on that rate and for that I am very thankful.
My experience which included a similar situation (to the fatso account) with Telstra a number of years back is that if they release a new plan they will not switch you to it unless you ask them too. In the case of the Telstra plan I was on it for a long time, it was not until years later when they released a plan that was a better deal that I switched.
I agree with the OP. The guy needs to take it as a learning experience and keep a closer watch on what he is being charge compared to the current rates.

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itxtme

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#465163 4-May-2011 09:48

scuwp: Legal responsability definitely not.

Moral responsability...I guess it depends on your outlook, but in my mind also no, so I agree with you. IMO it is up to the consumer to monitor and adjust their plans, contracts, for anything including ISP or other Telco services.

Things change. People need to take some responsability for their own situation.

I wholeheartedly agree with what you are saying. Ultimate responsibility lies with the person paying the bill, I dont think I would have gone so publice as a company, makes you look a little amatuerish. That being said you can bet not resigning clients will cost you big $$$ in the end. Looks like this customer will be off somewhere else!

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mooder

9 posts

Wannabe Geek

#465197 4-May-2011 10:55

I would like to share with you all my experience.

I was on the Total Home - Landline & Broadband rental and added an extra 10GB to broadband (total 30GB per month) and paid $111.76.
At the end of last year, I found out (by chance) that there was a new plan Total Home Broadband & Landline rental plan for $108.06 with **40GB Broadband**. I had to call Telecom to change the plans.

If I didn't visit the Telecom website, I would have just continued paying the bills with lower monthly GB allocation.

I agree that the customers should review things, but companies should at least send a notification (brochure, email, etc) to inform customers about a change in their product!

If companies are able to send out brochures about discounts & sales on physical products (like the junk mails we get weekly in our posts), I can't see why they can't do the same with these services (telecom, broadband, electricity)

amanzi

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#465203 4-May-2011 11:05

It's is in the interest of all businesses to ensure that their customers are always getting the best possible deal. Customers shouldn't have to keep checking if they are on the right plan or not.

Why would businesses pro-actively give their customers the best deal? Because it builds long term goodwill and ensures that you have a customer for life.

Case in point - had TCL been more proactive about this, they would have a very happy customer who would be keen to spread the word about how awesome TCL are. Instead they are getting bad press and are losing a customer.

As a business you have to weigh it up: would you rather have the short-term gain of overcharging your customers, or have a long term customer happy to recommend you to others?

GH33

65 posts

Master Geek

#465234 4-May-2011 12:15

So this is a guy running a company. If he has time crying to the press, I'm pretty sure he's got time to review the costs periodically. Running a company needs keep costs at minimum where possible, I wouldn't want to associate with a company with the CEO not taking any responsibility and accountability. I wonder where else he could cut costs in his company, I bet broadband isn't the only thing. You have to look after yourself in this world, noone owes you a favour. In regard to total home package and total home broadband package,the former one includes national toll calls while the later gives you more bandwidth. So clearly they satisfy different market's needs I congratulate you on falling within 1 of those 2 market.

nzkc

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#465247 4-May-2011 12:36

I don't think a company has an obligation to tell you of their new products and whether you'd be better suited on another product/plan/whatever.

However; a good company would do this to foster customer loyalty. Look after the customer, provide them good service and they have less of a reason to go looking for an alternative. If they're "really onto it" they'll charge you the lesser cost for a given month and explain why on your bill.

Ragnor

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#465263 4-May-2011 12:58

2CLight come across as morons, what company doesn't review costs at the least once per year (end of financial year/budget time)?

jonb

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#465270 4-May-2011 13:14

It's standard business practice for banks to introduce deals for new savers, but neglect to tell existing accounts about the better deal avilable.

Tabuti

134 posts

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#465288 4-May-2011 13:37

NonprayingMantis:
Tabuti: Do Telstra still offer the Old Plan?

If not they should have swapped him to the newer plans...

They would be very quick to change your plan if the old one was cheaper and the new more expensive

would they?
Do you have any evidence to suggest that?

I'm sorry I should have put - In my Opinion...

Tabuti

134 posts

Master Geek

#465289 4-May-2011 13:40

jonb: It's standard business practice for banks to introduce deals for new savers, but neglect to tell existing accounts about the better deal avilable.

If you mean a new product? well thats what the mail outs are for, but if a customer has opted out of them then you are not allowed to send them.

They also cannot just swap an account over without permission.

But if they were to discountinue a certain account or product the customers would be told & given the new 'Options'

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