Wednesday, October 7. 2009Truth And ISP's Public Statements........John Linton .......two completely different things that bear no relationship to each other. I don't know whether its the result of month of talking only to real people while on holidays in rural England or the jaundiced eye with which I have had to look at so many situations in the week or so I have been back in Australia but the award for most lies in a single brief newspaper article must go to Internode's spokesmen in this particular article (assuming they were reported correctly): Now the head line of the article describes the actuality correctly -"bigger data allowances" - but this is the final result of months/years of hype about the 'new' Pipe cable signaling the era of lower ADSL plan prices. Fair enough - there was never any chance of lower ADSL plan prices from ISPs such as Internode and iinet (let alone Telstra or Optus) but for almost two years that has been the claims by at least iinet and Internode. It doesn't really matter because, of course, the assumption is that no-one who reads statements from such people ever remember what they previously said.
"Internode spokesperson John Harris told PC Authority Why not? It is very obviously a "cost cutting exercise". Why has it been trumpeted for two years as a way of obtaining cheaper international IP transit if it isn't a cost cutting exercise? Why do it if it doesn't provide cost benefits? Why the attempt to disguise the fact that Internode (and iinet et alia) have constantly been saying in the press for two years that it will "massively reduce costs of IP" and will result in lower prices to the end user? The there's another equally silly statement: "Internode's and: "Michael You just have to laugh out loud at this total misrepresentation of the truth. How is increasing someone's quota by up to 20 gigabytes a month delivering them any better value? The simple answer is that - it doesn't deliver better value in any way......unless you think that on this particular day everyone of Internode's and iinet's customers suddenly found a need to download what for the majority of them would be more than double what they downloaded previously it is not delivering value it is simply a totally cynical way of saying : "hey, we just reduced our operating costs by millions of dollars a year but you get none of the benefits of that" Or you could look at it another way if you wanted to take the view that most ADSL users want to increase their internet usage by more than double (or at least by 20 gigabytes a month as claimed by Internode). Exetel, a much smaller company than either iinet or Internode of course, now pays around 30 cents a gigabyte for international IP traffic and expects that to fall to less than 25 cents per gigabyte by Christmas. If Internode was genuine in passing on the wind fall cost savings it claims it has just made it would simply reduce its plan costs to provide downloads at a 100% mark up on its new, claimed much lower, IP costs - which in the case of its current "30 gb plans" would be reduction of a minimum of $A5.00 a month. The 'justification' not to expressed as: "And No sh** - but it very much does decrease your IP costs so what relevance does introducing other costs have on the issues? (Presumably those other costs continue to fall as greater economies of scale are reached?). None whatsoever unless you are trying to hide the fact that you are desperate to take a windfall cost gain for reasons undisclosed. There is NO benefit from increasing the included download in a plan by a large amount unless there is a range of plans that allows a user to DOWNgrade to a lower priced plan for the same amount of data he/she actually used in a month. There is no problem at all in a commercial company improving its monthly/yearly profit by buying from its suppliers at lower prices. Trying to explain why the promised customer lower plan prices haven't happened by lying flim flam isn't an appropriate thing to do. So the actions of Internode and iinet will make this claim by Pipe a nonsense: "PIPE International chairman Bevan Slattery hailed the new cable as sufficient motivation to cut ISP costs throughout Australia," Nothing to see here in terms of lower ADSL pricing.....perhaps the reason is........ that SX IP bandwidth is already offered at a lower price than the vaunted for years Pipe price?
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How is increasing someone's quota by up to 20 gigabytes a month delivering them any better value?
The scammers can scam more before their service is shaped? Comments (2)
it would be good if optus or worse telstra increased there lowest quota by 20 gb's as then they will be on par with every other ISP.
I think exetels ADSL1 plans are great in terms of usuage but i would like the 8mb plans reduced in price if possible but i know that is cause of telstra being...(make ur own ending to the statement ) with there renting of there lines etc. Comments (3)
Exetel make almost nothing out of the 8 mbps plans - less than $2.00 per user.
Comments (4)
yeah i understand that and i love exetel for it. as if i was not able to get a adsl 8mb plan i would have to pay the same amount for adsl2+ and only 7gb usage
Comments (3)
Exetel have taken a /massive/ step in the right direction with the (re-)introduction of your PAYU use plans. A base connection fee with zero included data and a very reasonable unit price per GB on top is a very pro-consumer move. The end user can decide for /themselves/ how much to use and spend per month.
To my knowledge Exetel is the only ISP that does it, and I think you should be commended for the risky move. Is the concept proving popular? My only concern with PAYU plans is what protections are in place to stop customers inadvertently racking up a big bill? Can users choose to cap themselves at a set maximum dollar/data limit? Comment (1)
Stanley,
At Exetel's usage charges it would take an extraordinary amount of downloading to get "a huge bill". Having said that the system notifies the user each time they use 1 gb. Comments (4)
[There is NO benefit from increasing the included download in a plan by a large amount unless there is a range of plans that allows a user to DOWNgrade to a lower priced plan for the same amount of data he/she actually used in a month.]
Well said, totally agree! Comment (1)
There is a way increasing the download quota might be able to save you money.
If and only if it allows you to down size your plan to a cheaper one that gives you same downloads as your old plan. This does not work if the ISP does not allow this plan jumping, or if you are already on the cheapest plan. Comment (1)
John,
why do expend so much time and energy into an business sector, that just sucks the you dry. Sorry john -- I must inject some of my logic here - you know you can sell your Sydney home for $1 mill plus and move out from Sydney and live in a very comfortable lifestyle - you’re not young now at 60+ . Why do you continue to bash your head against the brick wall - of incompetent governments / unfair playing fields / whinging customers and a feeling that at some point your going to have to do it someday. I'm a bit different to most - I just call it, as I see it. Are you looking after your and Annette’s best interest , or your kids. cheers bill. Comments (2)
Hi Bill,
You obviously see it differntly to me, but I see my dad contributing as much as he can to ensuring our users have the best possible service at the lowest possible price, while at the same time donating significant sums of money to worthy flora/fauna causes, and ensuring his family is very comfortable. James Linton Comment (1)
Bill, last time Annette raised the topic our house could be sold for many time $A1 million - we paid over $A2 million for it some 18 years ago and have added to it considerably since then.
I do what I do because I have a desire to do more than earn money (of which I have more than enough to see out our lifetimes). Annette and I work together, thus sharing our lives, on the mutual objective of making Australia a better place for its human and non-human inhabitants. Sounds corny? I don't give a sh**; it's what we do. Comments (4)
and if John bails or never started exetel i would be at least $50 out of pocket with crappy speeds and like 7gb per month. even though exetel is a small company it has a big impact on its users (those that are not rtards saying they have slow speeds with P2P etc.)
If John ever bails I hope he leave the company in good hands where they still look after customers first and then profits second. Comments (3)
some time ago, saw an interview with jerry lewis where he said there's not enough silly in the world these days & had to agree
there's also not enough corny keep doing it Comments (2)
John and James,
I have a slightly skewed version of life, and dont wish to put either off your choosen paths through life I must first off say that my life now consists of looking after my wife of 7 years younger than me , who unfortunately developed a Neurological condition very similar to MS however the doctors are unable to say exactly what she has, or what is going to happen to her. I say this now, this has jaded my view on many things. the only real advice I can give, is understand what you want, work hard to get it, and know when it’s time to enjoy what you have achieved. cheers. bill. Comments (2)
I can't believe how many suckers line up to pay Internode's inflated prices for bogus reasons like "better" support. It seems that some people equate a foreign accent with inferior support ...
The best internet connection is one where you don't need to phone support! Comments (3)
Internode do have a place in the market. They provide competition in the corporate space much like Exetel does, and this country needs more of that.
That said, I cannot remember the last time I called a carrier for support and got someone who had some sort of accent many would not consider "native". Being brought up in a part of Sydney that was home to many families from overseas has conditioned me to understand the majority of accents without a problem. I would hope that more Australians of my generation experience the same benefits. What sort of accent someone speaks with has no bearing on their abilities. The way many Australians speak with a lazy tongue is surely construed in a negative fashion by some, once again in a completely ignorant fashion. Comments (3)
Earlier this year, I spoke to each of the "Group of Four" about buying IP transit, mainly to show a cost comparison to my boss.
The Verizon guys were very open about what cables they were on, and how excited they were about PPC-1. For Verizon it's not about cheaper bandwidth, as the transit provider on the other end is Tata and they already peer with Tata in a settlement free fashion all over the world and they're a big user of SX and stated they get excellent rates. The reason they gave for looking forward to PPC-1 going live was to do with their mesh strategy. They were talking about getting capacity on Telstra's newest cable as well. If anything, one of the real positives of PPC-1 is an additional path for international traffic, and the possible future project of connecting PPC-1 to Brisbane would be an excellent extension of that. Comments (3)
We will get revised pricing from Pipe today; however I doubt that it, at least initially, will be lower cost, or lower transit time, than we get currently and we expect IP transit pricing to fall further before Christmas.
Comments (4)
OMG not the lamest excuse ever offered, "someone stole teh wireless"
or even a stranger passing an account holder's unsecured wireless network. Comment (1)
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