Telstra launches 200GB ADSL assault

By Ry Crozier on Jul 26, 2010 11:24 AM
Filed under Telco/ISP

ISP Internode steps up calls for ACCC intervention.

Telstra has again put the squeeze on its competitors by undercutting resellers of its wholesale ADSL ports by up to $100 a month on high-quota plans.

The telco confirmed rumoured plans yesterday, by slashing the cost of its BigPond Elite products, shaving $40 a month off the 50GB plan and $90 a month from its 200GB offer.

The aggressive move widened the gap between the incumbent's retail and wholesale prices and will renew pressure on competition regulators to intervene.

ISP Internode last week accused Telstra of engaging in "anti-competitive conduct" in a letter to Australian Competition and Consumer Commission chairman Graeme Samuel.

Telstra's 200GB plan was now $89.95 a month when bundled with a "full-service fixed phone" from the carrier.

Internode's 200GB ‘Fast' plan (which used Telstra Wholesale infrastructure) was $189.95 a month - now $100 (rather than $10) more than Telstra's retail equivalent.

At the weekend, Internode managing director Simon Hackett said he expected "to add ... to the complaint already filed" against Telstra with the regulator.

By 8am, Hackett posted in the Whirlpool forums that Internode staff were "off talking to the ACCC", promising that "lots is going on behind the scenes".

He said Internode "can't and won't go broke matching pricing [on resold Telstra ports] that is now so far underwater financially that it would be insane to try".

Hackett said that Internode would "re-examine our pricing where we can do something especially on our own ports and Optus ones in the light of the new BigPond release".

"We think we're worth the prices we charge today - and the history of past price squeezes has shown us that the world doesn't end when such things happen," he wrote.

"We'll keep doing a great job for everyone who trusts us to do so."

Telstra ignited the price war earlier this year with a short-term 25GB offer for the $50 sweet spot in the market.

7 comments in this discussion

"wjc, When you rang Australia's second biggest Telco SingTel Optus for a 'competitive' service what did they say?"

By advocate

Tags

telstra, retail, wholesale, price, accc, internode, isp, undercut

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Comments: 7

Res Jul 26, 2010 3:07 PM	It is not often I stick up for them, but credit given where credit due, so I congratulate telstra for finally, after nearly 20 years, waking up and actually offering a competitive retail service to end users, for years most ISP's have had the advantage over them, I mean who seriously in their right state of mind pays $50 a month for 200mb of data when other ISP's offered gigs of data for same price, yes, this is true of only a few short years ago, those ISP's (including those I have worked for) reaped the benefits, now, telstra finally giving the retail market a bit of a shake up, some ISP's are crying foul, it is just too cut throat in this day and age to sit back and relax. Now, we will never know what todays price is on telstra wholesale port access, because they are all behind NDA's, but I'd be really surprised if any ISP was paying TW more than 90 a month for the port these days.
Mordd Jul 26, 2010 4:28 PM	Funny how telstra only do it when they can screw over the wholesale division in the process though. This only underscores the need for physical seperation of Telstra Retail and Wholesale arms, until then I hope the ACCC take a strong stance on this and take the necessary action to stop Telstra abusing its market position. Bring on the ACCC!
zag Jul 26, 2010 7:04 PM	Telstra have sold off their network. so if labour win they can set the price to anything they like as it's all government owned, which means the more people who are on Telstra will get swapped to NBN connections as once fibre is installed in an area they have disconnect the copper loop and force everyone onto fibre connections. Even though Telstra is privately owned it's all run by government laws so guess who really runs Telstra, do dear pricing and the government can grab cash out of Telstra and then sell it off grab more cash and use laws to dictate what the company can do afterwards. ISPs can complain as much as they want with with labour in control they won't get anything as Telstra doesn't exist as long as NBN exists and is running.
crispincurly Jul 26, 2010 7:26 PM	Yeah, it works fine. Doesn't cost a cent. I have an unlocked phone on telstra too and hasn't cost me anything http://choyungteatrial.org
btone Jul 27, 2010 4:59 PM	Upload charges, people, upload charges!
wjc Jul 29, 2010 3:58 PM	Yes - but what makes us "RIM-Pair Gain" Telstra small business victims utterly sick of Telstra is the way it (yes - Mr Thodey) utterly ignores its customers (victims) that are stuck with Telstra's (yes Mr Thodey's) pair gain mess... with - wait for it - a speed of 31.2Kbits/sec! AND he dares to say that he wants Telstra to be customer oriented! What cynicism! AND - Telstra could not care less!!! Action? Interest? an Australia "fair go" spirit? No way for us RIM/pair gain victims....from Mr Thody or his Board ... and they keep sending us brochures about their great new ADSL broadband services!! What cynical behaviour! Yes - there is a Gunghallan - there is a Gold Coast - there is Broken Hill - but to Telstra - "what, us care?"
advocate Jul 30, 2010 11:08 AM	wjc, When you rang Australia's second biggest Telco SingTel Optus for a 'competitive' service what did they say?