iTnews

Vocus drops 12Mbps NBN plans from iPrimus and Dodo

By Ry Crozier on Apr 2, 2019 3:08PM
Vocus drops 12Mbps NBN plans from iPrimus and Dodo

As bandwidth discount ends.

Vocus has stopped selling 12Mbps NBN services via its retail brands iPrimus and Dodo following a change made by NBN Co to wholesale bandwidth fees.

The telco today pulled both 12Mbps offers that Dodo had been selling as well as a 12Mbps product from iPrimus.

As reported by iTnews last week, NBN Co will no longer discount the cost of connectivity virtual circuit or CVC - used to offload traffic from the NBN to a service provider’s network - in instances where the provider has not switched to a new wholesale pricing construct.

Affected service providers face a substantial increase in basic wholesale costs as a result, meaning they must either raise retail prices or offer more congested retail services.

The decision disproportionately impacts retail providers and customers with plans on the lowest NBN tier of 12/1Mbps, of which there are about 1.16 million - a quarter of all active fixed line services.

However, NBN Co admitted this week that 30 percent of all users on its network are on plans using this legacy pricing - and therefore face the likely prospect of imminent price hikes for their internet services.

Until today, Dodo had been offered a $50 a month plan on the NBN12 tier with 101GB of quota, as well as a $60 a month plan on NBN12 with unlimited data.

Now, it offers just two plans: a $60 a month plan with 101GB of quota on the NBN25 tier, and a $70 a month plan with unlimited data on the NBN50 tier.

Choices are also considerably slimmer at iPrimus. It had been offering 12Mbps plans at a $60 a month entry point with 100GB of data or $70 a month with unlimited data.

It now offers only an NBN50 plan with unlimited data priced at $80 a month.

“To manage the changing environment and the different needs of different customer groups, we are releasing new NBN offers across both our Dodo and iPrimus brands,” Vocus chief executive of business and consumer Antony de Jong told iTnews.  

“Dodo now sells 101GB plans on the NBN25 speed tier for $60 per month and an unlimited data plan on the NBN50 speed tier at a special promotional price of $70 per month.”

It is understood that in-contract 12Mbps users on either brand can continue to use their services.

Vocus is no longer aggressively pursuing growth of its NBN customer base anyway, though it is maintaining some in-market offerings and presence.

NBN Co has turned up the pressure on retail service providers over the past year to pay higher wholesale costs for services, which is translating into higher retail prices and s growing barrier to entry.

Optus had to axe its own $60 a month entry-level NBN plans in June last year, with its products now starting at $70 a month.

It isn’t clear how other retail providers with large installed bases of 12Mbps users plan to respond to the loss of the CVC discount.

The gradual increase in the cost of entry-level NBN services could put broadband affordability into sharp focus, particularly as the future of the NBN looms as an active federal election issue.

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © iTnews.com.au . All rights reserved.
Tags:
broadband dodo entry level iprimus nbn plan telco telco/isp vocus

Partner Content

Beat the DDoS blackmails in 2021
Partner Content Beat the DDoS blackmails in 2021
Why companies fail at picking cloud modernisation partners
Partner Content Why companies fail at picking cloud modernisation partners
Shut the door on ransomware
Partner Content Shut the door on ransomware
MSI shows first laptops with Wi-Fi 6E, Nvidia RTX 30 graphics
Partner Content MSI shows first laptops with Wi-Fi 6E, Nvidia RTX 30 graphics

Sponsored Whitepapers

Five questions to ask before you upgrade to a SIEM solution
Five questions to ask before you upgrade to a SIEM solution
Effectively addressing advanced threats
Effectively addressing advanced threats
The risky business of open source
The risky business of open source
Ensure your e-signatures are legally binding
Ensure your e-signatures are legally binding
Mitigating open source risk in your organisation
Mitigating open source risk in your organisation

Events

  • On-Demand Webinar: How Poly and Microsoft are Embracing Future Work Environments
  • Beat the DDoS blackmailers in 2021
By Ry Crozier
Apr 2 2019
3:08PM
0 Comments

Related Articles

  • Vocus backs LEO satellites to bridge regional broadband divide
  • Details of NBN Co's $3bn FTTN upgrade are still undecided
  • Vocus returns Dodo, iPrimus contact centres to 85 percent capacity
  • NBN enterprise cross-subsidy probe set for 'early 2021'
Share on Twitter Share on Facebook Share on LinkedIn Share on Whatsapp Email A Friend

Most Read Articles

Australia Post is building a digital twin of its delivery network

Australia Post is building a digital twin of its delivery network

Google threatens to withdraw search engine in Australia

Google threatens to withdraw search engine in Australia

Trump pardons former Google self-driving car engineer

Trump pardons former Google self-driving car engineer

NBN Co runs fixed wireless tower on diesel generator for over two years

NBN Co runs fixed wireless tower on diesel generator for over two years

You must be a registered member of iTnews to post a comment.
Log In | Register
All rights reserved. This material may not be published, broadcast, rewritten or redistributed in any form without prior authorisation.
Your use of this website constitutes acceptance of nextmedia's Privacy Policy and Terms & Conditions.