$199 vs $1680

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › $199 vs $1680

moxpearl

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Master Geek

#99195 14-Mar-2012 14:27

Current pricing for ADSL = $1680 for 1TB of Data
New pricing for Fibre = $199 for 1TB of Data ($199 would buy 150GB with current ADSL pricing)

Its all going throu the same route in and out of the country right?? ... soo someone tell me how it costs $1481 more to do it with ADSL ....

Cheers :)

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#595101 14-Mar-2012 14:30

international bandwidth is far from the only cost of providing data,

furthermore, anyone can put a price on something that nobody can actually buy yet.

networkn

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#595107 14-Mar-2012 14:33

moxpearl: Current pricing for ADSL = $1680 for 1TB of Data
New pricing for Fibre = $199 for 1TB of Data ($199 would buy 150GB with current ADSL pricing)

Its all going throu the same route in and out of the country right?? ... soo someone tell me how it costs $1481 more to do it with ADSL ....

Cheers :)

Yah I would be interested as well. ;)

I just want VF to put a plan in place between 60GB and 200GB! Surely a 120GB Plan would fit there.

ptinson

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#595111 14-Mar-2012 14:38

NonprayingMantis: international bandwidth is far from the only cost of providing data,

furthermore, anyone can put a price on something that nobody can actually buy yet.

We are taking orders now. So 'nobody' is not true:)

I have no view on costs to provide the service though so cant make any informed input there...

Paul

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moxpearl

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#595115 14-Mar-2012 14:41

NonprayingMantis: international bandwidth is far from the only cost of providing data,

Ok then, enlighten me... how does it cost $1481 more to provide it with current tech ???

NonprayingMantis: furthermore, anyone can put a price on something that nobody can actually buy yet.

What ?? These are official prices you can order..

sbiddle

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#595124 14-Mar-2012 14:55

Why are oranges and apples not the same price? They are both fruit.

ptinson

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#595131 14-Mar-2012 14:58

because oranges have pith and its harder to get that through the SxC Steve, i thought you knew this..

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NonprayingMantis

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#595135 14-Mar-2012 15:01

ptinson:
NonprayingMantis: international bandwidth is far from the only cost of providing data,

furthermore, anyone can put a price on something that nobody can actually buy yet.

We are taking orders now. So 'nobody' is not true:)

I have no view on costs to provide the service though so cant make any informed input there...

Paul

I said buying, not ordering. I could order Orcon UFB right now but if I can’t actually get it connected for 6 months (or longer) then it doesn’t really matter what the price is.

How many people have you connected so far?

I would have expected to see a press release or story in the paper announcing the first customer connected to a UFB plan in Auckland though. I saw one a while back about schools, but am yet to see one for residential UFB. Maybe I missed it. Do you have a link?

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ptinson

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#595144 14-Mar-2012 15:13

NonprayingMantis:
ptinson:
NonprayingMantis: international bandwidth is far from the only cost of providing data,

furthermore, anyone can put a price on something that nobody can actually buy yet.

We are taking orders now. So 'nobody' is not true:)

I have no view on costs to provide the service though so cant make any informed input there...

Paul

I said buying, not ordering. I could order Orcon UFB right now but if I can’t actually get it connected for 6 months (or longer) then it doesn’t really matter what the price is.

How many people have you connected so far?

I would have expected to see a press release or story in the paper announcing the first customer connected to a UFB plan in Auckland though. I saw one a while back about schools, but am yet to see one for residential UFB. Maybe I missed it. Do you have a link?

Ah you mean paying for now as a service?
There has been no press release with the first Orcon UFB customer yet, but that does not mean much.

Correct there was a School in the north we connected.

If you are in a serviced area where UFB goes past your door and Chorus has released it to the RSP's then i expect the wait to be less than 6 months.

But hey, i am years away from it...

Do you want me to pre-qual your address for you?

Paul

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networkn

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#595145 14-Mar-2012 15:15

NonprayingMantis:

I said buying, not ordering. I could order Orcon UFB right now but if I can’t actually get it connected for 6 months (or longer) then it doesn’t really matter what the price is.

How many people have you connected so far?

I would have expected to see a press release or story in the paper announcing the first customer connected to a UFB plan in Auckland though. I saw one a while back about schools, but am yet to see one for residential UFB. Maybe I missed it. Do you have a link?

Are you suggesting that Orcon and WXC are pricing below what they are prepared to actually sell at? I can't see the Commerce Commission nor the Govt standing for that.

I am wondering what will happen with DSL Pricing in the short to medium term.

NonprayingMantis

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#595147 14-Mar-2012 15:15

moxpearl:
NonprayingMantis: international bandwidth is far from the only cost of providing data,

Ok then, enlighten me... how does it cost $1481 more to provide it with current tech ???

It’s not so much the tech, it’s all about the price relativities between the other plans. By having a jump in datacap between 100GB and 1TB, Orcon know that people who want anything between 150GB and 1TB will take the 1TB plan. The average usage on that plan even once they get people on it, will probably be somewhere in the vicinity of around 200GB.

Compare that to the 300GB plan they offer on ADSL. The next biggest is 200GB, meaning that people will need to be using quite a bit more than 200GB before it becomes worthwhile.
So I wouldn’t be surprised if the utilisation on the 300GB plan is LOWER than the utilisation will be on the 1TB plan , when people actually start connecting to it. And utilisation is what drives cost, not the allowance itself.

So if you like the idea of the 1TB plan for $200, you need to accept that Orcon can’t afford to offer plans in between that and 100GB

NonprayingMantis: furthermore, anyone can put a price on something that nobody can actually buy yet.

What ?? These are official prices you can order..

Do you know anybody who has connected and enjoying this terabyte plan? Nope? Didn’t think so.

There is an old trick by consumer electric stores (Harvey Norman, Dick Smith etc) where they put a very low price on goods that are currently out of stock. Since they are out of stock, virtually nobody will buy them and be willing to wait weeks for the order to arrive, but it might put the person off buying it from a competitor who has the normal price, but the goods in stock. the person can place an order at the lower price if they want, but most won't bother. the few who do get a bargain. When the person comes back a few weeks later and the item is in stock, the price has mysteriously gone back up unless they put an order in. It’s why price match offers always require that the items from competitors stores be in stock.

NonprayingMantis

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#595148 14-Mar-2012 15:17

networkn:
NonprayingMantis:

I said buying, not ordering. I could order Orcon UFB right now but if I can’t actually get it connected for 6 months (or longer) then it doesn’t really matter what the price is.

How many people have you connected so far?

I would have expected to see a press release or story in the paper announcing the first customer connected to a UFB plan in Auckland though. I saw one a while back about schools, but am yet to see one for residential UFB. Maybe I missed it. Do you have a link?

Are you suggesting that Orcon and WXC are pricing below what they are prepared to actually sell at? I can't see the Commerce Commission nor the Govt standing for that.

I am wondering what will happen with DSL Pricing in the short to medium term.

Oh no, they are prepared to sell, but it’s just that the number of customers will be so tiny in the next year or two that the risk of having a cost blowout is minimal, meaning they can put much more PR friendly pricing out there and not worry too much about the impact if they get it wrong.

networkn

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#595153 14-Mar-2012 15:24

Nonpraying: I'm sorry but I can't agree with you here. Even if what you are saying is correct, I can't see a dramatic shift in the pricing in the next 2 years. There are mandated pricing structures in place I believe and set amounts that providers are allowed to increase by.

Talkiet

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#595160 14-Mar-2012 15:36

networkn: Nonpraying: I'm sorry but I can't agree with you here. Even if what you are saying is correct, I can't see a dramatic shift in the pricing in the next 2 years. There are mandated pricing structures in place I believe and set amounts that providers are allowed to increase by.

I don't believe there are any retail price controls.

The mandated priced are LFC prices for RSPs. They make up a PART of the overall cost, and in any case, teh RSP can charge what they like for the resulting retail service.

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.

kyhwana2

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#595166 14-Mar-2012 15:48

networkn:

I am wondering what will happen with DSL Pricing in the short to medium term.

Nothing, the price of wholesale DSL is regulated. (Except VDSL which isn't, but chorus/wholesale are charging $50 more for it, since it's a "premium" service.

moxpearl

123 posts

Master Geek

#595443 15-Mar-2012 08:18

sbiddle: Why are oranges and apples not the same price? They are both fruit.

That does not really help, neither do the rest of the comments

I am asking how can they justify the extra $1481 dollars..

Not just "Because"

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