iiNet to revise plans after Telstra retail price cuts

ISP iiNet has indicated it will launch revised broadband plans in "one-to-two months" to counter aggressive price and quota competition from Telstra.

The Perth ISP's chief Michael Malone briefly laid out the timeline in a Whirlpool post today.

The reactionary changes to Telstra's latest round of retail offers was first rumoured in late July but no timeframe was offered at that time.

Few other details were made available, save that iiNet would maintain its peak/offpeak plan structure and wouldn't extend Annex M to residential services. Annex M is a high speed mode of ADSL2+ on iiNet's network that allows faster upstream data rates. It is currently limited to business plans.

ISP Internode yesterday released a 240 GB offer for $99.95 standalone or $89.95 when bundled with a NodeLine phone service.

The product was designed to beat Telstra's latest offer - 200 GB for $89.95 when bundled with a phone service - but was limited to Internode's own Agile DSLAM network.

Internode was also forced to cut back on some of its offers that relied on Telstra infrastructure, including the suspension of its Easy Broadband product on Telstra ports.

Both Internode and iiNet were known to have filed complaints with the Australian Competition and Consumer Commission (ACCC) to intervene on Telstra's pricing conduct.

ISPs said Telstra was abusing its market power by cutting retail broadband prices without making proportionate changes to the wholesale rates it gives them.

The result was that customers of independent ISPs served via resold Telstra ports were increasingly eyeing Telstra's own retail offers, knowing that their ISP could not match the incumbent's own offers.