OzEmail deals out 'no contract' broadband option

OzEmail is offering customers the option of taking on its business and consumer broadband services on a month-to-month basis -- with no fixed term contracts -- from today.

The Internet service provider (ISP) claims to be the first vendor to have broken the AU$30 monthly price barrier on plans and now said it had "set the bar even higher" with its no contract offers.

Managing director of OzEmail Trevor Duff said in a statement yesterday OzEmail's new offer will present a challenge to other broadband providers that "lock you in with lengthy contracts" and charge excess usage fees and penalties for contract terminations.

"Many providers have rates that appear competitive, but only if you switch your telecommunications provider. You're locked in to longer contracts, with excess charges and an expensive 'out' option if you are not happy with one or all of their services," said Duff.

A spokesman from OzEmail said today that all plans would remain the same in download allowances, speeds and monthly prices; however, he admitted that all customers are now charged an upfront fee of AU$99 for line activation and an additional AU$99 for the modem, which previously came free on the 18 month contract plan.

OzEmail also said customers that terminate their connection within the first three months will incur a fee of AU$55, which it said is passed over from the charges OzEmail receives from Telstra.

Current broadband customers will have to wait until their existing contracts expire, according to the OzEmail spokesman. However, he said new customers and dial-up customers can adopt the month-by-month payment option straight away.

"Now, with no fixed term contracts to sign-up to, our customers and business customers have the peace of mind you can only get from OzEmail Broadband," said Duff.

Monthly plans start at AU$29.95 per month for a 300MB download limit and maximum speeds of 256Kbps, which is speed-throttled if the download limit is exceeded; and unlimited plans start at AU$49.95 with a 256Kbps download speed.

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Talkback 10 comments

    I just spent $120 on a 56K mod ...Anonymous -- 06/07/04

    I just spent $120 on a 56K modem - bugger

    HOW IS THAT NOT A CONTRACT!!!! ...Anonymous -- 06/07/04

    HOW IS THAT NOT A CONTRACT!!!!

    If you have to pay $55 to cancel within the first 3 months how is that not a contract.

    "no contract' is a nice i ...Anonymous -- 06/07/04

    "no contract' is a nice idea. So nice that its merely copying initiatives from existing, larger ADSL providers than Ozemail in the market, like Internode and iiNet, who have done the same thing for some time now.

    Pure Marketing Hype! It's a 3 ...Anonymous -- 06/07/04

    Pure Marketing Hype! It's a 3 month contract! Wonder what the ACCC will have to say about this?

    In addition, the 18 month cont ...Anonymous -- 06/07/04

    In addition, the 18 month contract also included a modem - now it's extra, on top of the $99 line activation, which also used to be free with the 18 month contract. This is a much worse deal than their previous contracts.

    Wish I'd signed up yesterday - now I won't bother.

    $120 for 56K modem WHY!!!! yo ...Anonymous -- 06/07/04

    $120 for 56K modem WHY!!!! you can get them for $25 nearly everywhere.

    God bless dial-up, restricted ...Anonymous -- 08/07/04

    God bless dial-up, restricted bandwidths, slow downloads, tied up phone lines and genral no end to frustration. With the recent rush on Broadband, it's hard to know where to start to get a decent package, avoiding the major carriers who seem to know how CHARGE at best!!!
    But if i can get 512 ADSL for around $50 and all i need is to purchase a modem, then what's the catch? Show me where to sign!!!

    It's not a three month contrac ...Anonymous -- 11/07/04

    It's not a three month contract! If it were so, OzEmail would be entitled to recover the fee of providing three months service. They are, however, able to recover a Telstra incurred charge if you stop taking out the service within three months. So there is a contract that is valid for three months, but it does not imposed liability for breaking the service early beyond the aforementioned fee. See the difference? See how it's not as comprehensive three month contract as OzEmail is entitled to by law and therefore it is legitimate to say it is a month-by-month contract... Good.

    how is broadband cheaper? Bigp ...Anonymous -- 29/09/04

    how is broadband cheaper? Bigpond (excuse the swear word) is advertising "Broadband at dial-up prices". The price may be the same - but the product doesn't even sit on the same shelf. How is it possible to compare an unlimited download plan with a 300MB package. It's just nonsensical.

    They are all corporate rip-off carriers. Anonymous -- 19/01/08 (in reply to #120108546)

    Check out what's happening on the global Internet deals and compared to our Australian rip-off telco's. You will see that they all still seem to think that the Australian public are a bunch of stupid convicts, settled here a few hundred years ago and we're all dumb. The whole Aussie telco industry is run by IDIOTS who have one thing in mind. HOW TO RIP YOU OFF!

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