iiNet drops 20GB NBN satellite plan on congestion fears

ISP iiNet will immediately withdraw its 20GB plan on the National Broadband Network's interim satellite service over congestion concerns.

The firm said existing customers on the 20GB plan would be unaffected — the decision only affects new customer sign-ups.

"The popularity of both our 10GB and 20GB plans have put considerable strain on the network designed by NBN Co," iiNet's chief regulatory officer Steve Dalby said in a statement.

"With no possibility of a network upgrade available from NBN Co, each new customer was adversely impacting the speed and experience of our current satellite customers."

Dalby said iiNet would now offer only a 10GB quota plan.

The ISP currently has about 7000 NBN satellite customers, according to statistics released last week.

An iiNet spokesperson told iTnews that approximately 65 percent of those customers (4550 in real terms) had signed on to the 20 GB plan, making it by far the most popular NBN satellite offering on iiNet's books.

An NBN Co spokesperson declined to comment.

NBN Co launched its interim satellite service in July 2011, which is underpinned by capacity from Optus and IPstar.

There are approximately 34,600 customers on the interim satellite service as at June 30 this year, according to NBN Co.

NBN Co is working on a long-term satellite service. Those satellites are expected to launch in 2015.