Analysis: Internode plans leave users up in arms

By Ry Crozier on Apr 28, 2010 3:21 PM
Filed under Telco/ISP

Your name on a pineapple.

ISP Internode has defended a revamp of its Easy Broadband plans that some users believed was less attractive than the Telstra offer it was trying to better.

Managing director Simon Hackett spent the best part of the day in a burgeoning Whirlpool thread that highlighted the ‘winners' and ‘losers' of the revamp.

Internode and other ISPs have been under pressure to match or compete with a limited-time ADSL2+ bundle offer by Telstra that has attracted heavy interest from broadband users.

Several users accused Internode of setting false expectations when it foreshadowed plan changes last month in response to the Telstra offer - a suggestion vehemently denied by Hackett.

"My intention in disclosing something new was coming at all was to avoid people changing plans or providers just before we released something new to consider," Hackett said today.

"The intention was not to compete on a 1:1 basis [with Telstra] but to improve value wherever there was room to move, and to do it sustainably. This is exactly what Internode did.

"There was no deliberate intention to create false expectations whatsoever."

Hackett said he made sure customers "knew we had a revision in the works.

"I intentionally didn't set expectations beyond that in order to allow us to complete ongoing negotiations that were happening in parallel to the release process," he said.

"I am not responsible for the mistaken expectations other people manufacture in their heads based on the speculations of others."

Hackett said plan specifics were subject to 11th hour negotiations with the ISP's suppliers prior to today's announcement.

He said Internode had "improved the service delivery to the absolute maximum that we can economically improve it at this time."

Internode's new Easy Broadband plan offered ADSL2+ speeds to customers located near around 550 ‘Zone 1' Telstra exchanges and doubled over-quota shaping speeds.

It offered 50 GB of data - double Telstra's quota offer - for $49.95 a month when bundled with NodeLine.

It was customers whose homes were located in Zones 2 and 3 that hit forums such as Whirlpool to voice frustration at the new plans.

While there was no requirement for these users to move to the new Internode plans, many claimed to have had expectations that they might have enjoyed speed or quota improvements from today's announcement.

Internode said such customers could benefit from revised Fast plans, also announced today.

Hackett outlined several reasons why Internode's plans were an improvement on the Telstra offer.

"BigPond's offer is for a limited time only. Internode's is permanent," he said.

"BigPond's offer has a mandatory 24-month contract term. Internode offers a rolling 1-month contract.

"BigPond's offer is for 25 GB. Internode offers 50 GB."

Hackett jokingly acknowledged that not every Internode customer would receive a "pony" under the new plans but warned customers contemplating switching to BigPond that there could be a sting in the tail.

"Somewhere else, in a corner you haven't yet found, a little pony dies and a pineapple has been planted with your name on it," Hackett joked [the post has since been removed].

"But it's OK - you've got 24 months to work out where they planted that pineapple. (Hint: It's somewhere the sun doesn't shine)."

Analysis: Internode plans leave users up in arms

23 comments in this discussion

"firey1: "Bullshit!! Most ISP's don't want access to the Zone 2,3 areas because it's not profitable enough for them." It's got nothing to do with profitable mate. It's about whether the excessive ..."

By Bazwalt

Tags

internode, plan, revisions, whirlpool, broadband, adsl, fast, easy

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Comments: 23

singo79 Apr 28, 2010 7:10 PM	Those people who have been on Whirpool.net.au complaining need to rethink the reasons why they are whinging in the first place. Let us all take a step back in time 10+ years and have a look at ISPs on the market, speeds offered, prices and data allowances. Now who was the most expensive price gouging company at the time.... Telstra! Then a small little company calling itself Internode comes along and starts to shake up the ISP industry. Internode have and continue to offer a great alternative to the overly expensive Telstra/Bigpond. Internode have been voted Australia's best ISP and have the most satisfied customers of all the ISPs in Australia. Unfortunately you can't please everyone, but they do a damn good job at what they do. It is just unfortunate that some people have take Simon's announcement out of context and listened to other people's rumours and innuendo. I still think that Internode are the best value ISP in Australia all-round. Unfortunately I cannot get Internode ADSL2+ internet, however I have the next best thing which is their ADSL Fast service. The reliability of the service/network, good data allowances, competitive prices, good (Australian) technical support, no lock-in contracts, plenty of un-metered content to download makes Internode a prime choice for many people out there. I wouldn't consider myself an Internode "fanboy" but I do appreciate good service and a competitive product package that they offer.
Mitch Apr 28, 2010 7:23 PM	Well put singo79.
firey1 Apr 28, 2010 8:13 PM	Of course you wouldn't call yourselves fanbois, So let me do it for you. Fanbois!!
NumbNuts2009 Apr 28, 2010 9:15 PM	I am happy with the new plans - moving to the Easy broadband together with Node phone will save me around $25 per month. My quota goes up from 40-50gb. Even though uploads are counted my highest monthly upload for the past 6 months was 4gb so I come out in front.
Snark Apr 28, 2010 10:32 PM	The thing that annoys me with this, is how this new plan provides no benefit at all to, statistically speaking, almost 30% of existing Internode Easy broadband users, Yet no mention at all was made of that fact that these plans would involve only those fortunate enough to be in the right zone. I realise that this is not Internode's fault (although I'm sure if they had tried they could have found a solution that would have been good for all) due to Telstra's monopoly of infrastructure, but to blithely discount the fact that it would be a pointless plan update for so many people and not even hint at this fact is pretty annoying.
firey1 Apr 28, 2010 11:01 PM	The thing that annoys me most is that most people living in Zone 1 areas already have access to other ADSL2 ISP's.
umbria Apr 28, 2010 11:19 PM	But snark, Internode has just doubled to 70% the number of its customers who can get speeds above 1500/256 on the $49.95 50GB easy broadband plan. As Simon has pointed out, Zone 2 and Zone 3 users' real enemy is Telstra, who monopolistically charge ISPs more for its DSLAM ports when they are the only game in town, but cut the wholesale price when another provider has a DSLAM in the same exchange. This action discourages would-be competitors from deploying DSLAMs, perpetuating the monopoly. Because the TIO only regulates ADSL up to 1500/256, they get away with it.
firey1 Apr 28, 2010 11:33 PM	Yes they always blame Telstra.
peterniss Apr 29, 2010 5:05 AM	Sif go with Telstrafail. 24 month contracts, Indian helpdesk and general fail allround. Is Internodes prices only gone up on the exchanges they cant get their own equipment into and thus have to use Smelstra at extortionate pricing? I'm sure internode will sort it out because they have the best management in the business.
Digger11 Apr 29, 2010 2:25 PM	Looks like Hackett the spin king and his sub-standard management team has decided to cash in by screwing its existing cusotmers (aka Fanboi's). I predict a "for sale" sign coming up soon for the Node, that would be the only reason for this price gauging. Also, good to see the Fanboi's blaming Telstra for when the Node increases it prices - that really make sense-NOT
anonymous Apr 29, 2010 2:26 PM	Perhaps we should only blame Telstra if they have a long and clear history of using their legal muscle to play games with any company trying to offer competitive services to endusers. Which sort of answers itself, doesn't it? And what was that you were saying about fanbois, firey1?
firey1 Apr 29, 2010 3:41 PM	"And what was that you were saying about fanbois, firey1?" Don't remember saying anything about them just saying they were. Can you not read?
firey1 Apr 29, 2010 3:43 PM	Why would you blame Telstra for another ISP not installing a DSLAM in your exchange?
BrettWinterford Apr 29, 2010 3:49 PM	I for one don't see how anybody has a right to complain - these are new plans, they are optional. Take them or leave them.
anonymous Apr 29, 2010 5:53 PM	Some mothers do 'ave them, like firey1. In post 3 on this thread you called two people fanbois because they were truthful about Telstra. I called you a fanboi for Telstra because that is what you sound like. We blame Telstra for saying that other telcos cannot have access to exchanges for their DSLAMs because it seems that in some cases it may have been just a ploy to get around competition requirements and shut out other service providers.
toner Apr 29, 2010 6:32 PM	I'm an Internode customer on a Zone 1 exchange. Before the plan changes I only had one other option for ADSL2 - Telstra. Optus have gear in my exchange but I'm behind a sub-exchange of some kind, leaving Telstra as the only option. Before anyone has a complain about the changes, think about the heap of people who still can't get ANY ADSL at all. I'm not really sure what there is to whinge about when Node is only trying to improve their service - after all, they have to battle with Telstra too...
firey1 Apr 29, 2010 6:35 PM	"We blame Telstra for saying that other telcos cannot have access to exchanges for their DSLAMs" Bullshit!! Most ISP's don't want access to the Zone 2,3 areas because it's not profitable enough for them.
Digger11 Apr 30, 2010 8:38 AM	@firey1, This has been discussed on many forums adnauseum. Telstra has a backhaul monopoly in most Zone 2 and 3 Regions and charge so much to access it that it makes it totally uneconomic for other ISP's to roll out DSLAM's in these areas. Telstra then "whinge and whine" that it's competitors only rollout DSLAM's in Zone 1 !!!! WHAT DO THEY EXPECT ???? It is this type of deceptive behaviour by Telstra that has made everyone in the industry hate them and we will all be glad when NBN replaces them. We all have to buy from Telstra presently due to their monopoly in many areas - the second there is a viable alternative they will be dropped like a hot potato as there really is total disgust behind the scenes at what they have done to tthe Aussie Telco industry. I don't think it is Thodey's fault - he inherited this mess from Trujillo and the prior Telstra Board. Do you really think Internode would be buying wholesale services from Telstra if there was a viable alternative ????
Mordd Apr 30, 2010 2:00 PM	Digger I agree with you (wierd isn't it) but keep in mind Firey1 is just doing what you did during the AFACT trial imho in his comments. Personally I would not touch Telstra with a 500,000 foot pole though and have proudly been Telstra free for more than 6 years now.
ivi May 5, 2010 10:51 AM	A colleague's post / pole was -removed- from Whirlpool.net.au (protectors of Internode?): Earlier, Internode spoke of "going mainstream" (whatever that meant); we now see that this "old dog" of an ISP can't learn TPG's new tricks. Fair enough, they can be the "Premium ISP" for those "ga-ga" groupies. most in SA, still happy to support a local co., as others leave it behind. --- We didn't get Internode's intention to "Go Mainstream" now we do: Like new cucumbers dipping into vinegar (ie, with older pickles), Internode have hung out w/high-priced Telstra long enough now to have become nearly as uncompetitive as Telstra's Big Pond. TPG continues to win more market share, simply by competing: TPG: $50 for 130 GB; over-quota 1 Mb/Sec; in-quota ADSL-2+ node $60 for 50 GB; over-quota 128 Kb/S; (min. 1.5-8 Mb/Sec?) --- Who'd go with Internode, in the face of TPG's competitiveness? We think it's only: - those who can't get TPG or similar plans at their exchange, - folks in SA, supporting another overpriced local player, & - maybe those who make believe they're "driving a BMW" :-) In fact, they're helping Simon buy another Tesla sports car; I'm sure these folks'll be satisfied -reading- about it on WP. (We give Simon full-marks for selecting an Electric Car, but don't think it's the best way to help the rest of SA's people get -affordable- EV's... not that Internode should do that; only that it -could- - for a Triple-Bottom-Line win... I'll change that: Internode, etc. -should- help do that IMO) --- Sadly, Internode may be "successful" in -stopping- the movement of Australian Intenet plans upward towards "world best" Unlimited. Simon, would you actually be -proud- of such an achievement? Whether or not you'd be, we're -not- proud of you for trying. :-/ --- Meanwhile, the French & Swedes continue enjoy: . Cheap, Fast, Unlimited (eg, symmetric 100 Mb/Sec) $50 plans
ivi May 5, 2010 10:54 AM	Poll at bottom of (previously published) colleague's post: 1 Internode is good enough for me 2 TPG's competitive plans are good enough for me 3 I want "World Best" - Fast, Cheap, Unlimited [FR/SE] 3 Australia should aim f "World Next" Even Better plans 4 I want "something very else" [I'll tell you in a post]
umbria May 5, 2010 5:05 PM	@ivi, it's just horses for course, mate, like Brett said. Both TPG and Internode are delivering for their respective customers. TPG's happy customers aspire to download most of the Interwebs onto their NAS drives each month, and some grumble but they ultimately accept slow performance and the odd outage during the evening peak due to oversold bandwidth being drained by the leeches. Internode's happy customers want reliability and top support, and are prepared to forego a huge download allowance (or buy extra data blocks) in exchange for it. And of course some customers of each spend all their time gazing at the green-looking grass over the fence. Oh, and most people in France and Sweden don't get Paris and Stockholm speeds, by the way, just like the city-country divide Down Under.
Bazwalt Jun 17, 2010 9:42 AM	firey1: "Bullshit!! Most ISP's don't want access to the Zone 2,3 areas because it's not profitable enough for them." It's got nothing to do with profitable mate. It's about whether the excessive backhaul costs by Telstra can be justified by the market in the area. I'm fairly sure that alot of ISPs would LOVE to setup their gear in more exchanges if the backhaul wasn't so costly. It's rare that an ISP will ever actually buy into Telstra backhaul if there are alternatives in the area -- and unfortunately that's not always the case. You gotta remember mate -- They may be a business but not all ISPs are profiteering scum that are just after your money.