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Handsomedan

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#154674 4-Nov-2014 09:18
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Now I'm no fool...I work in a commercial world and understand that there are costs associated with offering services, but to receive an email out of the blue with this news is frankly outrageous.

"On December 1, the way ISPs and phone companies are charged by our supplier for your connection will change. Essentially, the price of providing you with a broadband line increases substantially.
 
So, we’d like you to make one of the following choices:
 
- bundle your homeline and broadband with us (we have some really great value plans).
- get broadband with someone else (most likely a bundle will be your best option – but we're pretty sure we have better deals! And great NZ based service too).
- the third option (and one we initially didn’t want to offer, but due to feedback from people with specialised set ups, we have decided to) is to do nothing, but be aware that your broadband rental costs will increase to cover our increased costs.
 
We will introduce two broadband only plans:
$55 a month for 80GB data
$75 a month for unlimited
 
These new prices will start from your December bill, and we propose to put you on the $75 plan unless we hear from you."


I currently pay $53.00 a month for unlimited broadband...have only just moved to that after being on $48.00 80gb plan for some time.

What I don't understand is how they can possibly justify a nearly 50% hike in price!
If they had said it was going to increase by $10 I probabl;y would have sucked it up without complaint, but to try and hit me with a massive increase in cost and then to throw in some shoddy marketing of their "all inclusive packages" as a means to make this more palatable?


No thanks.

Time to go ISP shopping.

And to think that for all these years I have defended Slingshot against the naysayers and critics...no more.




Handsome Dan Has Spoken.
Handsome Dan is also still somewhat perplexed...


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Bee

Bee
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  #1168248 4-Nov-2014 09:24
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Where in the world do you live to get unlimited for $53??  Thats a good deal to start with!!!

Currently pay $75 for 40GB so either of the above would suit me!  

Amosnz
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  #1168251 4-Nov-2014 09:26
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Looks like Peter Reader needs a new auto-reply setup.




Speedtest


 
 
 
 


sbiddle
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  #1168252 4-Nov-2014 09:26
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The increase if a result of the changes to the way the cost of copper is recovered for a connection.

You can read more about this on my blog

http://www.geekzone.co.nz/sbiddle/8734

Or read the number of existing threads on here that already discuss this issue.

Changing ISP won't fix the problem - the only way to avoid such an increase is to have your phone and broadband with the same provider. Any ISP just offering broadband services but not billing the phoneline associated with the UBA account will face the exact same increase and will either have to put their prices up or make a significant loss.



Handsomedan

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  #1168257 4-Nov-2014 09:37
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It's not the fact that there's an increase coming that grinds my gears...it's the 50% increase that really gets me!





Handsome Dan Has Spoken.
Handsome Dan is also still somewhat perplexed...


quentinreade
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  #1168260 4-Nov-2014 09:42
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Hi all,
Steve's post explains the issue really well.
There is a fundamental and substantial change to the way ISPs are charged in New Zealand.
Most people bundle broadband and phone services these days (and that's the rationale for the change), so this only affects a few percent of our customers.
But, the changes are substantial and mean we have to change the way we charge for broadband only plans or we make a loss. 
We are encouraging people to bundle services - we'd of course prefer they bundle with us, but of course you are free to go elsewhere.
If you are opposed to bundling because you have specialised set up that will be complicated if you bundle, we just want you to be aware that you will start paying more - with us or any other ISP.
Please sing out with any questions.
We are trying to communicate the (complex) change as clearly and as quickly as possible. Hopefully industry bodies will join Steve and write supporting material that outlines these changes.
Thanks, 






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sbiddle
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  #1168263 4-Nov-2014 09:45
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Handsomedan: It's not the fact that there's an increase coming that grinds my gears...it's the 50% increase that really gets me!



That price is exactly the same as their naked plan - and the costs of providing a Naked UBA connection and a clothed UBA connection (if you don't have POTS bundled with the same provider) will be identical from the 1st Dec so it's logical that both would be priced the same.


Handsomedan

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  #1168275 4-Nov-2014 09:50
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sbiddle:
Handsomedan: It's not the fact that there's an increase coming that grinds my gears...it's the 50% increase that really gets me!



That price is exactly the same as their naked plan - and the costs of providing a Naked UBA connection and a clothed UBA connection (if you don't have POTS bundled with the same provider) will be identical from the 1st Dec so it's logical that both would be priced the same.


Irrespective of what the naked plans are - I have been with this ISP for 8 years (ish) and I have just changed to the $53.00 plan - which incidentally, when checking which plans are available to me, is still offered as an option - it's a 50% increase on what I pay - frankly couldn't care less what new or other customers would pay. I have a plan and that's now increasing by 50%.

As I said...outrageous.






Handsome Dan Has Spoken.
Handsome Dan is also still somewhat perplexed...


 
 
 
 


hairy1
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  #1168276 4-Nov-2014 09:52
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You need to be outraged at the Commerce commission who have implemented the changes to the regulated product. All ISP's are in the same boat. 




My views (except when I am looking out their windows) are not those of my employer.


quentinreade
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  #1168277 4-Nov-2014 09:55
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Anyone on a broadband only plan also needs to factor in their homeline only rental as well.
OP - you'll pay $53 to us, and probably at least $45 to a homeline provider. So $98 a month.
Our unlimited plan with a homeline is $89 a month.
Thanks.





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Handsomedan

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  #1168281 4-Nov-2014 10:03
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quentinreade: Anyone on a broadband only plan also needs to factor in their homeline only rental as well.
OP - you'll pay $53 to us, and probably at least $45 to a homeline provider. So $98 a month.
Our unlimited plan with a homeline is $89 a month.
Thanks.


And if were likely to take that offer up, what is the likelihood that the price will increase again in a few weeks/months?

There was no indication to me as a customer that the $53.00 price was going to increase until I received that email, so what sort of guarantee do I have that by changing my phone provider to Slingshot I'll have any certainty of cost going forward?






Handsome Dan Has Spoken.
Handsome Dan is also still somewhat perplexed...


sbiddle
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  #1168288 4-Nov-2014 10:13
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Handsomedan:
quentinreade: Anyone on a broadband only plan also needs to factor in their homeline only rental as well.
OP - you'll pay $53 to us, and probably at least $45 to a homeline provider. So $98 a month.
Our unlimited plan with a homeline is $89 a month.
Thanks.


And if were likely to take that offer up, what is the likelihood that the price will increase again in a few weeks/months?

There was no indication to me as a customer that the $53.00 price was going to increase until I received that email, so what sort of guarantee do I have that by changing my phone provider to Slingshot I'll have any certainty of cost going forward?




There is clearly nothing to stopping putting up their price, but this change resulted from the change in the regulated pricing which is set by the MBIE and Commerce Commission. It did not result from Slingshot suddenly deciding to change their pricing. If the Commerce Commission IPP investigation was to result in a determination that the new pricing was set too low, there is every chance that pricing could increase further but this would be a change to regulated pricing that would affect every ISP in the same way.

This change has only been known to the industry for a few weeks now, and the effects and way it'll be dealt with is still something that there is a lot of industry discussion occurring about.




hairy1
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  #1168292 4-Nov-2014 10:18
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Handsomedan:
quentinreade: Anyone on a broadband only plan also needs to factor in their homeline only rental as well.
OP - you'll pay $53 to us, and probably at least $45 to a homeline provider. So $98 a month.
Our unlimited plan with a homeline is $89 a month.
Thanks.


And if were likely to take that offer up, what is the likelihood that the price will increase again in a few weeks/months?

There was no indication to me as a customer that the $53.00 price was going to increase until I received that email, so what sort of guarantee do I have that by changing my phone provider to Slingshot I'll have any certainty of cost going forward?




You have no guarantee of price increases. Perhaps Slingshot will drop the contract or lock in if you bring your line across. Just out of interest, what are you currently paying for the current line - phone number and broadband combined total?

Cheers, Matt.




My views (except when I am looking out their windows) are not those of my employer.


PhantomNVD
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  #1168308 4-Nov-2014 10:55
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Handsomedan: 

We will introduce two broadband only plans:
$55 a month for 80GB data
$75 a month for unlimited
 
These new prices will start from your December bill, and we propose to put you on the $75 plan unless we hear from you."


I currently pay $53.00 a month for unlimited broadband...have only just moved to that after being on $48.00 80gb plan for some time.

What I don't understand is how they can possibly justify a nearly 50% hike in price!
If they had said it was going to increase by $10 I probabl;y would have sucked it up without complaint, but to try and hit me with a massive increase in cost and then to throw in some shoddy marketing of their "all inclusive packages" as a means to make this more palatable?


from Steves blog I see:

> The wholesale cost of a naked UBA DSL connection (naked ADSL, ADSL2+ or VDSL2) drops from $44.98 to $34.44 per month

> The wholesale cost of clothed UBA product (when UBA is combined with an existing POTS phone service from a different provider) increases from $21.46 to $34.44 per month. If you have a phone and broadband from different providers the total cost is $41.44 to the provider of the POTS phone service provider, and $34.44 per month to the UBA broadband provider.

So by my understanding, his 'naked' plan would be REDUCED in price, except if he has a POTS connection, in which case the POTS will be 'subsidised' by the UBA (so his POTS price should decrease equally?) Ergo he should be asking his POTS provider why they aren't passing the saving too!


@OP - best plan is to drop the POTS service, go naked and use 2Talk (or other VOIP) for 'landline' calls?

@Steve - did i mistake anything there?

sbiddle
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  #1168319 4-Nov-2014 11:12
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PhantomNVD:
So by my understanding, his 'naked' plan would be REDUCED in price, except if he has a POTS connection, in which case the POTS will be 'subsidised' by the UBA (so his POTS price should decrease equally?) Ergo he should be asking his POTS provider why they aren't passing the saving too!


I haven't kept up to date with all the announcements in the last week but my understanding (and I'm sure Quentin will be able to correct me if I'm wrong) is that something like $23 will be credited to the POTS account when UBA exists on the same line regardless of whether UBA is from the same provider or another provider.



quentinreade
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  #1168327 4-Nov-2014 11:21
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Handsomedan:
quentinreade: Anyone on a broadband only plan also needs to factor in their homeline only rental as well.
OP - you'll pay $53 to us, and probably at least $45 to a homeline provider. So $98 a month.
Our unlimited plan with a homeline is $89 a month.
Thanks.


And if were likely to take that offer up, what is the likelihood that the price will increase again in a few weeks/months?

There was no indication to me as a customer that the $53.00 price was going to increase until I received that email, so what sort of guarantee do I have that by changing my phone provider to Slingshot I'll have any certainty of cost going forward?




I'm not aware of any plans to put our prices up - in fact broadband prices have been trending down, so it would buck an ongoing trend if we did. And, it's a highly competitive market out there, Slingshot has always competed on price.

Sorry again for the changes to your broadband only plan. As others have pointed out, this isn't driven by us, it's a reaction to the regulated price the entire industry is charged.




Head of Communications
Vocus NZ


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