[Snap] Chorus cutting price of premium copper product

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › [Snap] Chorus cutting price of premium copper product - Reduced vdsl pricing?

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myfullflavour

896 posts

Ultimate Geek

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Full Flavour

#849569 5-Jul-2013 10:40

Dairusire: Well, I ended up going with Full Flavour Media in the end. Loving it so far.

I also reduced my internet bill from 170 p/m to 119 incl. Well worth it imho

Appreciate the positive feedback.

We followed through with our price-drop last month:

- We dropped the Clothed VDSL option as 80% of problems were related to these installs
- We dropped Naked VDSL down by $20 (excl GST)
- We dropped our pricing down for existing customers by a variable amount depending on their contract and the costs we incurred up-front getting them setup. The price drop for existing customers varied between $10 and $30.

Dairusire

298 posts

Ultimate Geek

#849595 5-Jul-2013 11:07

myfullflavour:
Dairusire: Well, I ended up going with Full Flavour Media in the end. Loving it so far.

I also reduced my internet bill from 170 p/m to 119 incl. Well worth it imho

Appreciate the positive feedback.

We followed through with our price-drop last month:

- We dropped the Clothed VDSL option as 80% of problems were related to these installs
- We dropped Naked VDSL down by $20 (excl GST)
- We dropped our pricing down for existing customers by a variable amount depending on their contract and the costs we incurred up-front getting them setup. The price drop for existing customers varied between $10 and $30.

Worth it for me to be honest, hahaha A pretty much $50 drop in monthly bill is pretty epic haha

Benoire

2798 posts

Uber Geek

#849598 5-Jul-2013 11:12

I have to say Fullflavour seems interesting, a $115 per month ($15 over what I pay for ADSL) with VOIP and 'unlimited data'... So far Snap is $135 a month for the same product effectively (300GB cap, assuming that the unlimited data is consderd to be around 300 a month).

Dairusire

298 posts

Ultimate Geek

#849619 5-Jul-2013 11:46

Benoire: I have to say Fullflavour seems interesting, a $115 per month ($15 over what I pay for ADSL) with VOIP and 'unlimited data'... So far Snap is $135 a month for the same product effectively (300GB cap, assuming that the unlimited data is consderd to be around 300 a month).

They way I understood things was, there was the unlimited 'pool'. I believe what they define being 'fair use' to 300GB is basically between normal business hours. So that would be basically between 7:30 or 8am - maybe 8 or something at night. Outside of these hours its balls to the wall, go nuts.

Benoire

2798 posts

Uber Geek

#849645 5-Jul-2013 12:14

I could justify without trouble fullflavourmedia VDSL on this basis as it is still cheaper than Snap with VOIP. Interesting....

myfullflavour

896 posts

Ultimate Geek

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Full Flavour

#849665 5-Jul-2013 12:29

Dairusire:
Benoire: I have to say Fullflavour seems interesting, a $115 per month ($15 over what I pay for ADSL) with VOIP and 'unlimited data'... So far Snap is $135 a month for the same product effectively (300GB cap, assuming that the unlimited data is consderd to be around 300 a month).

They way I understood things was, there was the unlimited 'pool'. I believe what they define being 'fair use' to 300GB is basically between normal business hours. So that would be basically between 7:30 or 8am - maybe 8 or something at night. Outside of these hours its balls to the wall, go nuts.

There is a brief description under our VDSL FAQ (on our website) about Fair Use, and also detail included in each agreement with the customer.

We review the accounts of all customers who do more than 300GB in a calendar month. If most of that usage is in off-peak hours, then no problem.

We have three timezones:

Business: 7am-7pm (business customers have priority on the network)
Evening: 7pm-12am (keep your torrents down here if you can)
Overnight: 12am-7am. Go nuts.

surfisup1000

5288 posts

Uber Geek

#849686 5-Jul-2013 12:55

myfullflavour:
We have three timezones:

Business: 7am-7pm (business customers have priority on the network)
Evening: 7pm-12am (keep your torrents down here if you can)
Overnight: 12am-7am. Go nuts.

Interesting, if you had have made this clear when I was looking for a vdsl ISP I probably would have joined.

Basically when I looked at your plan it seemed that you had a 300gb cap and it was not unlimited at all . Good to see the wording is now clear, just a bit late now as I'm tied into snap.

Equinox IT

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Benoire

2798 posts

Uber Geek

#849693 5-Jul-2013 13:04

MyFullFlavour, do the business hours stretch to Sat/Sun too? Not that I actually use torrents that much (if at all!)... I guess I'd be more concerned about how much data I could use at the weekend wihtout causing your businesses too much trouble... For example, I purchase a few games from Steam/Xbox live.... 20-30GB in data and download them on sat, would that be problematic as long as it didn't happen that often?

eXDee

4032 posts

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#849703 5-Jul-2013 13:32

Perhaps you guys should take this over to the broadband forum, rather than Snap.

Benoire

2798 posts

Uber Geek

#849705 5-Jul-2013 13:35

Yeah sorry, it was about Snap originally, but as they've stated via twitter that their prices are competative enough, I don't think they are going to drop at all.

hotsupes

161 posts

Master Geek

#858591 18-Jul-2013 12:55

Mint news from Chorus

Nil Einne

469 posts

Ultimate Geek

#873285 7-Aug-2013 15:31

eXDee: That's a good point. There are many factors involved in delivering a higher speed service, im sure someone at an ISP or familiar with their costs could point them out. I imagine infrastructure upgrades might be necessary to cope with overall higher throughput. And a high speed service is going to be a lot more bursty in bandwidth usage than a lower speed.
ISPs pay by the megabit or gigabit per second, whereas customers pay the ISPs per gigabyte of usage. Dealing with 1000 ADSL2+ customers on a 150gb plan would be easier than dealing with 1000 customers on a 150gb VDSL2 plan, particularly during peak times.

Anyway, we know a price cut is coming soon enough, but it will definitely still be at a premium to ADSL services. It'll be up to the market to decide exactly how much.

For me the point of comparison is not so much ADSL since as you say there are other factors which may make it more expensive to offer VDSL, rather the comparison is more fibre. A number of ISPs who offer fibre and ADSL2+ including Snap have their lowest price fibre offering, 30/10 with no improved service undertakings but with a VoIP phone line, the same or not much more than their ADSL plans. Yet, among those ISPs, many of those who also offer VDSL2 are still charging a significant premium compared to ADSL.

Snap who we're talking about here charge $10 for VDSL2 without a phone line and $20 ($10 again) for VDSL2 with a phone line whether naked and with a VoIP line or clothed so with a traditional line.

I know the government and Chorus are heavily pushing fibre given their investments and don't want copper to be too competitive and I'm still a bit confused how the wholesale price of fibre compares to ADSL/VDSL (I know fibre generally has free installation subsidised by the UFB provider). It may be with the heavy push, that fibre is actually cheaper so ISPs are able to make up for the extra infrastructure etc that way. (Obviously fibre has the advantage you only need a router with a FXS if you want a phone line, compared to a router-modem for VDSL2.) It may also be that VDSL actually has slightly higher average downstream than fibre although it can't be by much and the upstream must be lower average and I think many are more attracted by the upstream but I presume most ISPs are saturated in downstream. And I guess for those ISPs which offer two levels of home user 30/10 one with a higher level of service commitments, they will probably only offer their VDSL in their higher service category.

But the premium is still there for many ISPs and likely to discourage uptake. Of course some ISPs like Telecom and Lightwave charge the same or more for their fibre compared to VDSL although their rates are relatively uncompetitive compared to some of the cheaper ISPs.

Don't get me wrong, I'd greatly prefer fibre over VDSL as well, the problem is I'm in UFB hole, most of the houses 360 degrees around a small area where I live have it but I'm not getting it for 2-3 years. One of the issues I guess is those ISPs with the more competitive plans e.g. Slingshot, Orcon and perhaps Compass still aren't offering VDSL and while these may not have the best reputations at times, for many including me they work well enough.

To be fair prices are on a downward trajectory and things are looking better than when I looked last year what with Telecom's entry, FFM cutting their prices and Snap adding more data (can't remember if they were more when I looked).

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