Thursday, October 16. 2008We'll build a world of our own, that Telstra won't share...John Linton .....All our problems and costs we'll leave be-hind us there And I know that you'll find, there'll be peace of mind http://www.youtube.com/watch?v=S9oaXzrsV3Q .....so when you actually come to think about it - why do you need a Telstra land line to provide a broadband service? You don't - isn't it just another 'legacy' that has suited Telstra and has never, until now been challenged by Telstra wannabes, to extend the, what appear to be, considerable profits it makes from the 'sun set' years of a hundred year old (based) copper network. It's very useful and its very convenient but because it's controlled by a monopoly it's very expensive. So I started my List A yesterday with the first entry being that as long as Exetel based any service on any infrastructure 'provided' by Telstra we would never be able to succeed in building a viable business. Easy enough to determine - so many other companies who buy various services from Telstra reached that conclusion a long time ago and have spoken publicly about it for many years. Optus, AAPT, iPrimus, iinet, Internode, TPG 'spokespeople' have all made reference to this scenario in announcing their own versions of fibre, cable, satellite and, more recently, ADSL2 builds of their own to either eliminate or reduce their dependence on Telstra. The only major successes have been the mobile networks built by Optus, Vodafone and '3' and it took a long time for those to reach 'equality' with Telstra and they suffered for many years from the disparity in user numbers via the 'inter-carrier' charging regime. Your own ADSL2 DSLAM network doesn't really address the problem (you have to rent Telstra 'real estate' to house your equipment, you have to rent Telstra copper lines from the exchange to the end user, you also may have some fairly difficult and time consuming operational 'hoops' to jump through) and no matter what you do the end user still also pays Telstra if they want to make land line telephone calls (or pay Telstra via the ISP for that privilege). So - any version of ADSL2 is still far more expensive than it should be when provided by a non-Testra ISP or communictions company - at least that's the way it looks to me. But why is there this 'hang up' on providing broadband ONLY via a network owned and controlled by Telstra? Why is that the "safety" of a Telstra land line for 'emergencies' such a major 'stumbling block' to removing Telstra's charging regimes from every deployment of broadband? In the 1970s it was called FUD (Fear - Uncertainty and Doubt spread by the incumbent dominator in a particular market. I suspect it's still FUD. So here's my current thoughts to deal with List A - Point 1: 1) Use HSPA for 256 kbps ADSL1 users a) 90% of Exetel's current 256/64 kpbs users download less than 1 gb a month b) HSPA is 2/3 the price of ADSL1 at less than 1 gb download per month (maximum $20.00 instead of minimum $30.00) c) Replace land line telephone calls with VOIP - save 50%, at least, of current call charges (10 cent local calls and 10 cent STD calls 20 cent per minute calls to mobiles) d) Cancel land line rental (save $19.90 to $30.00+) e) Replace land line with mobile 'standby' service at a cost of $10.00 tops including free hand set. f) Amend the web site along the lines that any sensible user would be crazy not to replace their 256/64 kbps service with an HSPA service that is so much cheaper and probably 6 times faster. g) We have removed the 256/64 ADSL1 services from our web site pricing sections and replaced the 'old' pricing with this statement: "If you are considering an ADSL plan at 256 kbps download speeds we believe you would be much better off considering an Exetel HSPA plan that will give you speeds between 512 kbps up to over 1,000 kbps and will cost you less than an ADSL service for low download usage. To see whether an HSPA plan will suit you please click here" h) Contact our current ADSL1 users who download less than 2 gb per month and appraise them of the compelling reasons why they might like to consider moving from ADSL1 to a much faster and much cheaper service. What we learn from these 'initiatives' we will then use to address the 512/128 kbps users and 1500/256 kbps users.I think it is probably best if we just discontinue offering the telstra 8192/384 service to new users and use ADSL2 as the alternative. That's as far as I got yesterday in 're-constructing' Exetel's business plan to allow Exetel to retain more control of any future business it might be able to do and to simplify the relationships it has to 'manage'. Our aim would be, one way or another, not to supply any 256/64 kbps ADSL1 services by some time in early 2009 by replacing them with much faster and much lower cost alternative services. Trackbacks
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On Whirlpool members often enquire after suitable broadband plans for pensioners (low cost, low usage). I think Exetel's HSPA product that you've described is a compelling option for this demographic in particular.
However, these potential switchers may be put off by the prospect of excess usage charges. Is the option of a cap on your HSPA plans a possibility? Comment (1)
That's very difficult to do - we will continue to look in to it but short of locking the service once some limit has been reached I don't see a way of 'capping' such a price sensitive service.
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Good point. Trying to explain how much browsing/usage 2gb entails can be quite tricky.... when I said, it's only $3 if you go over it... they were like... oh, that's okay then, Telstra charge a lot more.
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Another FUD related to inertia in us end users getting rid of Telstra is the fact that some of us have had our home phone number for a long time (in our case 20 years across multiple home addresses), and we would like to keep that number, so if you can organise to port phone numbers to VoIP DIDs then that might help
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We have been looking in to that, on and off, for over two years.
Right now we are only a little closer to getting a realistic system in place to do it. Comments (10)
It's all well and good to recommend this. My parents fall into the 512/128 less than 4gb category, however they have FUD and with good reason. Two hour or so long outages in 15 days (one by a supplier sending a cease code to your router and the other an electrician stuffing around in your datacentre - hope he scared the %$$^& out of himself).
Each of these outages has resulted in a quick phone call to myself from my parents and then a long return phone call from myself to them for assistance. If they had mobile backups that I had to call instead of a landline these outages would have exceeded the $$$ saved for the month. I however would switch to NAKED ADSL however until you introduce landline --> VOIP phone number porting it won't happen. (The wife wants to keep our 7+ year old phone no.) T. Comments (2)
You make sensible points and there will always be circumstances where it would not be suitable.
As a general approach we think it's sensible in a market that will continue to change. Comments (10)
For 256/64 users still in contract, would you allow a switch to the HSPA C2 24 month contract without penalty?
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I don't know - we'll look at what the specific offer to 256/64 users is and write to each user before the end of October.
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The low monthly cost is attractive to anyone, the hardware costs required to make it a true replacement are still prohibitive though, I know for a fact that will change in time but is still perhaps one of the reasons that people will be reluctant to lose the landline at this stage anyway, the poor attempt by Virgin to introduce a viable alternative probably hasn't helped inspire confidence in the market either
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I saw something strange in a customer's premises yesterday while fixing their printer. They had Optus wireless broadband; but they also had a wireless landline replacement device as well - a smallish black box with green LEDs, a power cord, and an attached Panasonic cordless.
I tried to find out more about this service, but unfortunately one of the customers was not on site and the other knew little about it, other than to say they'd been with Optus for years and that they were very happy with it; and had dumped Telstra. I tried to find more information about this online, and also asked on Whirlpool but so far no success. If they have got what it appears they have, then they're well on the way to doing what you want to do, as it's only the DID issue that remains. As a side note, I have three landlines - one ISDN and one PSTN; and the rates on the ISDN are going up 30% next year, so I'm also trying to find ways to dump it. I'd do it all through VoIP but again I need to keep the numbers If I can combine "Second Number" and "Duet" I might be able to dump them all onto the one PSTN line and keep the PSTN number (which I don't need, but which if I change may kill my ADSL.) I dare say Telstra will be unwilling to have numbers snaffled by Exetel. Perhaps you can do something tricky with Optus to get them to take over the number, run them as a virtual service then do a forwarding to your own DID numbers? Good luck with it all! Comments (2)
That sounds like the Optus Wireless Fusion package. They new sign ups a little while ago.
Virgin still sell their equivilent service. http://www.virginbroadband.com.au/wirelessbroadband/broadband-at-home.aspx Comment (1)
Thanks for that Looks like it's still available as a standalone product for residential and business, as per http://personal.optus.com.au/web/ocaportal.portal?_nfpb=true&_pageLabel=Template_wRHS&FP=/smallbusiness/telephony/wirelesstelephony&site=smallbusiness
I'll find out more tomorrow. Comments (2)
I wonder if there is (or will be) an HSPA modem with onboard VoIP that could accept a PSTN line (and therefore PSTN calls)? A modem basically the same as an ADSL all in one device, except it draws it's internet from spectrum instead of the phone line, would allow outbound calls to be made with VoIP, but inbound calls to be received from both VoIP and PSTN.
So replace the $10 backup mobile with $20 homeline poverty pack (sorry I have forgotten it's name) and all problems mentioned above are solved. If at sometime in the future number porting becomes a possability... bonus. Comments (2)
that's possible already using two extra devices, Billion, Netcomm or Draytek 3G router and a simple Linksys or similar ATA, I guess once the market matures a little more though you'll see an all in one unit, not sure if they'll add the modem though as it takes away some of the flexibility of being able to just plug the USB modem into other devices
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The Billion 7404VGOX will do this when it is released later this year. ADSL2+, 3G, VOIP, PSTN.
http://billion-uk.com/downloads/literature/2008_product_portfolio_pamphlet.pdf Comment (1)
I see 3 UK are stepping up their offer now http://www.three.co.uk/personal/products_services_/mobile_broadband_/router_share.omp
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A way around the "fear" of excess usage fees would be to redirect users to a page where they can purchase additional data "blocks" or agree to pay excess fees when they reach their limit.
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That would be a sensible method - making it a pre-paid service with the ability to buy more downloads on line when a user 'runs out' of pre-paid data.
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I have considered moving my brothers 1500/256 service over to HSPA as he uses about 2 to 3 gigs a month tops when I am not there. But HSPA is just too expensive after the first gig.
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Why not find a way to make the pricing structure you have now work for more users?
Stick with the $x per month access charge. Start at $xx for 1Gb, with the price per Gb decreasing for each additional Gb used. You could either make the first Gb $15, the 2nd $14, 3rd $13 (etc - figures are examples only) or make it that if you use 1Gb it is $15.Gb, use 2Gb's and it's $14/Gb, 3Gb and it's $13/Gb (etc). If you could overcome the two potential flaws (comprehension and profitability of the plan) you could maintain a the unique structure (I think) you desire. Comments (2)
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Absolutely right John.. Same deal as optus $49.95 for 5GB. Your on an absolute winner with HSPA -- give some medium download plans.. You'll corner the market. It takes balls to take the inititive away from the established compannies. Exetel has the systems in place and the will to innovate -- have a go. Comments (3)
I currently have a HSPA C3 plan - as a replacement for my backup dialup account.
I'll also use it as a replacement for a seldomly used ADSL account I have in Brisbane. But it would be good to be able to use Voip directly from the HSPA modem without suffering too much from the additional capital outlay. Harry. Comment (1)
I have had 2 friends this week ask me about the possibility of dumping telstra and going to a voip mobile service and wireless BB , i said let me look at the Exetel mobile plans that can use voip / data calls and i'll let you know the story.
I looked at the plans -- yep suits them fine - but all this fring program went past me .. Im pretty knowledgible on voip via adsl and use the exetel voip at home exclusivley. The people im talking too dont mind buying a new mobile for $500 but you need better setup / user instructions on how to setup each of the phones in your approved list of mobiles that are suitable for the Exetel voip service. If i cant work it out, the average user has no chance. One question they asked, was if their friends ring them when they have ditched the telstra landline -- will their friends be ringing a mobile number that costs heaps / min or will the did number call be the cost of a std landline number to ring. Is it possible to have simple language setup and plan detail document that I can print out off your site that i can print and handout to them. Comments (3)
All your points are valid.
The mobile plans come with a DID. Many phones have built in SIP - fring is or the 0nes that don't or that don't work. Please email your comments and questions to: davidh@exetel.com.au I can't answer them. Perhaps ost them on th HSPA part of the exetel forum. Comments (10)
I have trouble convincing low end uses to except a service with excess usage fees (even if they are reasonable). Would it be possible for the user to set a download limit (for the HSDPA service)at witch they would be capped? ie at 1GB or 2GB
I understand that this might take some extra work at your end, but I think you'd benefit from a lot more low end users making the jump to HSDPA. Thanks, Rob Comment (1)
Yes - we've always intended to do it.
It will come up as a 'block page' with a warniing that if they click on OK it will then cost 2.5 cents per mb with a further block page at 1.5 gb then at 2 gb and so on every 500 mb. We also intend to introduce a pre-paid version. Comments (10)
If the amount of activity on this thread alone doesnt vindicate your thoughts about hspa being the future, you are not seeing the vision / feeling you have always had.
Take a big breath -- think very carefully about it.. Ask yourself this question if HSPA isnt the future --------------------- what is? you know telsra has all the cards -- or do they .. i trust you.. Comments (3)
A wise man once said - "play the cards you're dealt the best way you can."
A wiser man replied - "stack the deck and ensure you are dealt the cards you want to play." If we keep playing with the cards from Telstra's stacked deck we can never win. Comments (10)
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