Orcon increases prices on ADSL and 30Mbps Fibre

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › Orcon increases prices on ADSL and 30Mbps Fibre

staticnz

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Master Geek

#165887 23-Feb-2015 18:29

Just noticed on Orcon's site, they've increased the price for their ADSL and 30Mbps Fibre capped plans by $3/month:

50GB now $78 (on the bright side, they've increased the cap from 30GB)
100GB now $88
Unlimited still $95

Presume its only for new customers!

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Ultimate Geek

#1245082 23-Feb-2015 18:59

It's for old customers as well, recevied the notice last week

toejam316

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#1245097 23-Feb-2015 19:21

Ah good - so they will INCREASE the price without a new contract, but not decrease it.

Seems fair.

Anything I say is the ramblings of an ill informed, opinionated so-and-so, and not representative of any of my past, present or future employers, and is also probably best disregarded.

michaelmurfy

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#1245102 23-Feb-2015 19:30

toejam316: Ah good - so they will INCREASE the price without a new contract, but not decrease it. Seems fair.

Try running an ISP is all I can say then you'll realise that it is a cut-throat industry dealing with very low margins and customers complaining things are too expensive, demanding credits for outages (despite being a best effort service) etc.

Fully understandable.

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marpada

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Ultimate Geek

#1245103 23-Feb-2015 19:43

https://www.orcon.net.nz/support/gfaq_page/changes_to_some_orcon_broadband_plans

toejam316

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#1245105 23-Feb-2015 19:45

michaelmurfy:
toejam316: Ah good - so they will INCREASE the price without a new contract, but not decrease it. Seems fair.

Try running an ISP is all I can say then you'll realise that it is a cut-throat industry dealing with very low margins and customers complaining things are too expensive, demanding credits for outages (despite being a best effort service) etc.

Fully understandable.

Very hard to run an ISP without customer retention.

Anything I say is the ramblings of an ill informed, opinionated so-and-so, and not representative of any of my past, present or future employers, and is also probably best disregarded.

FireEngine

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#1245117 23-Feb-2015 20:20

toejam316:
michaelmurfy:
toejam316: Ah good - so they will INCREASE the price without a new contract, but not decrease it. Seems fair.

Try running an ISP is all I can say then you'll realise that it is a cut-throat industry dealing with very low margins and customers complaining things are too expensive, demanding credits for outages (despite being a best effort service) etc.

Fully understandable.

Very hard to run an ISP without customer retention.

This is due to Chorus increasing the wholesale prices, all ISPs are affected.

Regards FireEngine

toejam316

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#1245125 23-Feb-2015 20:23

FireEngine:
toejam316:
michaelmurfy:
toejam316: Ah good - so they will INCREASE the price without a new contract, but not decrease it. Seems fair.

Try running an ISP is all I can say then you'll realise that it is a cut-throat industry dealing with very low margins and customers complaining things are too expensive, demanding credits for outages (despite being a best effort service) etc.

Fully understandable.

Very hard to run an ISP without customer retention.

This is due to Chorus increasing the wholesale prices, all ISPs are affected.

A common cop out. The regulated pricing on ufb services is unchanged. Honestly when that is the line it makes me and a few others that much less likely to buy or recommend others to buy services from the companies in question.

Anything I say is the ramblings of an ill informed, opinionated so-and-so, and not representative of any of my past, present or future employers, and is also probably best disregarded.

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Jase2985

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#1245237 23-Feb-2015 22:07

because they want you to go for the unlimited/higher speed plans

michaelmurfy

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#1245259 23-Feb-2015 22:41

toejam316:
FireEngine:
toejam316:
michaelmurfy:
toejam316: Ah good - so they will INCREASE the price without a new contract, but not decrease it. Seems fair.

Try running an ISP is all I can say then you'll realise that it is a cut-throat industry dealing with very low margins and customers complaining things are too expensive, demanding credits for outages (despite being a best effort service) etc.

Fully understandable.

Very hard to run an ISP without customer retention.

This is due to Chorus increasing the wholesale prices, all ISPs are affected.

A common cop out. The regulated pricing on ufb services is unchanged. Honestly when that is the line it makes me and a few others that much less likely to buy or recommend others to buy services from the companies in question.

As people want more and more things for free, fancier routers and all that you'll note that the margins diminish to the point it is not worth them doing hence why prices have to go up. There is no point being a business if you don't return a profit.

Posted in 2013 - http://www.geekzone.co.nz/sbiddle/8579 - prices have not gone up since then however you've got a bigger data cap, they're also giving away better routers and you also get things like Global Mode hence why they have to increase pricing. If you don't want all those things then maybe a no-frills ISP like BigPipe is for you.

Salami

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Master Geek

#1245358 24-Feb-2015 08:14

michaelmurfy:
toejam316: Ah good - so they will INCREASE the price without a new contract, but not decrease it. Seems fair.

Try running an ISP is all I can say then you'll realise that it is a cut-throat industry dealing with very low margins and customers complaining things are too expensive, demanding credits for outages (despite being a best effort service) etc.

Fully understandable.

Not to meantion you have to politely ask chorus or UFF, Enable for an earlier connection then being told there ain't any..

Customers swears at you , you can't do anything about it and they don't understand why .

Very hard to be a good ISP when everything is outside the control of the ISP.

SteveON

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#1245423 24-Feb-2015 10:06

michaelmurfy:
toejam316:
FireEngine:
toejam316:
michaelmurfy:
toejam316: Ah good - so they will INCREASE the price without a new contract, but not decrease it. Seems fair.

Try running an ISP is all I can say then you'll realise that it is a cut-throat industry dealing with very low margins and customers complaining things are too expensive, demanding credits for outages (despite being a best effort service) etc.

Fully understandable.

Very hard to run an ISP without customer retention.

This is due to Chorus increasing the wholesale prices, all ISPs are affected.

A common cop out. The regulated pricing on ufb services is unchanged. Honestly when that is the line it makes me and a few others that much less likely to buy or recommend others to buy services from the companies in question.

As people want more and more things for free, fancier routers and all that you'll note that the margins diminish to the point it is not worth them doing hence why prices have to go up. There is no point being a business if you don't return a profit.

Posted in 2013 - http://www.geekzone.co.nz/sbiddle/8579 - prices have not gone up since then however you've got a bigger data cap, they're also giving away better routers and you also get things like Global Mode hence why they have to increase pricing. If you don't want all those things then maybe a no-frills ISP like BigPipe is for you.

Its as if people expect companies to be charities these days. Grow up people.

toejam316

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#1245429 24-Feb-2015 10:16

SteveON:
michaelmurfy:
toejam316:
FireEngine:
toejam316:
michaelmurfy:
toejam316: Ah good - so they will INCREASE the price without a new contract, but not decrease it. Seems fair.

Try running an ISP is all I can say then you'll realise that it is a cut-throat industry dealing with very low margins and customers complaining things are too expensive, demanding credits for outages (despite being a best effort service) etc.

Fully understandable.

Very hard to run an ISP without customer retention.

This is due to Chorus increasing the wholesale prices, all ISPs are affected.

A common cop out. The regulated pricing on ufb services is unchanged. Honestly when that is the line it makes me and a few others that much less likely to buy or recommend others to buy services from the companies in question.

As people want more and more things for free, fancier routers and all that you'll note that the margins diminish to the point it is not worth them doing hence why prices have to go up. There is no point being a business if you don't return a profit.

Posted in 2013 - http://www.geekzone.co.nz/sbiddle/8579 - prices have not gone up since then however you've got a bigger data cap, they're also giving away better routers and you also get things like Global Mode hence why they have to increase pricing. If you don't want all those things then maybe a no-frills ISP like BigPipe is for you.

Its as if people expect companies to be charities these days. Grow up people.

All valid reasons to be sure, but counteracted by the fact that the finger has been pointed at Chorus for a hike in cost.

Also you guys aren't accounting for things like localisation of access to content at the APE as well as internal network additions like CDNs reducing use of international transit and thus reducing that cost, as well as cost reductions in the transit prices themselves with signalling for more to come.

The reality is the cost will always be fluctuating, and if there is a cost increase it should be transparent to the consumer. If you can't tell me why then it's profiteering pure and simple, and I'll go elsewhere for my services.

Anything I say is the ramblings of an ill informed, opinionated so-and-so, and not representative of any of my past, present or future employers, and is also probably best disregarded.

Satch

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#1245458 24-Feb-2015 11:57

I think all arguments here are valid. The only thing that I will re-highlight is the fact that it alleged that they are automatically increasing prices for customers already on contract when they don't do the same if they lower the price of a plan for contracted customers. This bit doesn't appear to be fair. A contract should be a contract and held in good faith.

Talkiet

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#1245467 24-Feb-2015 12:14

toejam316: [snip]
Also you guys aren't accounting for things like localisation of access to content at the APE as well as internal network additions like CDNs reducing use of international transit and thus reducing that cost, as well as cost reductions in the transit prices themselves with signalling for more to come.

The reality is the cost will always be fluctuating, and if there is a cost increase it should be transparent to the consumer. If you can't tell me why then it's profiteering pure and simple, and I'll go elsewhere for my services.

You don't have a clue what the breakdown is of costs for an ISP. I do, and it's entirely unsurprising that several ISPs have increased retail pricing since the Chorus price increases. It's certainly not all due to that shange though - but any responsible company is going to periodically re-assess pricing based on all factors.

I'd hazard a guess that infrequent price increases across multiple products is preferable to several smaller increases over time, especially seeing the vitriol often directed at them when the prices go up by any amount.

As businesses, if the ISPs aren't profitable, then things get worse for the consumer. I guarantee you that every ISP in the country has a better long term view of the market than you do.

Cheers - N

Please note all comments are from my own brain and don't necessarily represent the position or opinions of my employer, previous employers, colleagues, friends or pets.

toejam316

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#1245470 24-Feb-2015 12:18

Talkiet:

You don't have a clue what the breakdown is of costs for an ISP. I do, and it's entirely unsurprising that several ISPs have increased retail pricing since the Chorus price increases. It's certainly not all due to that shange though - but any responsible company is going to periodically re-assess pricing based on all factors.

I'd hazard a guess that infrequent price increases across multiple products is preferable to several smaller increases over time, especially seeing the vitriol often directed at them when the prices go up by any amount.

As businesses, if the ISPs aren't profitable, then things get worse for the consumer. I guarantee you that every ISP in the country has a better long term view of the market than you do.

Cheers - N

Absolutely not claiming to know more than the ISPs. I am claiming that if an ISP can't account for price changes and resorts to blaming Chorus for unrelated services as the source of that price change, then it's hard to believe that as truth.

Anything I say is the ramblings of an ill informed, opinionated so-and-so, and not representative of any of my past, present or future employers, and is also probably best disregarded.

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