iPrimus pulls plug on unlimited DSL

iPrimus, is scrapping its unlimited DSL plan and has given users a month's notice to find an alternative service.

The 400 customers of the ISP's unlimited service began receiving letters this week, announcing the option to download unlimited data will become defunct in about a month's time.

-Quite simply, it's uneconomical for us to continue," iPrimus media relations manager, George Hazim, told ZDNet Australia.

-Even with our low cost to provide bandwidth from our end, Telstra's high cost of bandwidth coupled with customers who are highly abusive of the service, means it's no longer economical."

Hazim said the ISP is aware the decision will -prove to be unpopular" and although it's just a small proportion of the ISP's 400 unlimited customers that are deemed excessive users, -some are taking far too great a liberty," he said.

The move by iPrimus shadows the same decision by Telstra in June this year to cap its unlimited Freedom Plan - a move which inspired Internet petitions, marches of protest and talks of a class action by angry broadband users.

Although iPrimus users involved in a broadband forum discussion today have expressed concerns that the service provider may levy fees for costs incurred with the early termination of contracts, Hazim said: -we won't be charging them".

However, iPrimus claims to be the only direct competitor of Telstra's that is able to match the telco heavyweight in terms of DSL offerings. -Our DSL service is far more reliable than Telstra's," Hazim said. -We're still the second largest DSL provider in the country...I don't think jumping ship would be a wise thing to do."

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Talkback 11 comments

    Once again, false and misleading advertising. >Hazim said the ISP is aware the decision will “prove to be unpopular” and although it’s just a small proportion of the ISP’s 400 unlimited customers that are deemed excessive users, “some are tAnonymous -- 09/10/01

    Once again, false and misleading advertising.

    >Hazim said the ISP is aware the decision will “prove to be unpopular” and although it’s just a small proportion of the ISP’s 400 unlimited customers that are deemed excessive users, “some are taking far too great a liberty,” he said.

    [...]
    I am not with Iprimus, therefore I am not affected.

    However, if the service is not unlimited than it shouldn't be falsely and misleadingly be advertised as such!

    Apart form that, I have an unlimited dail up account.
    Why would anyone change from that to a limited DSL account?

    The only advantage of broadband is the possible huge downloads, if that is not allowed than there is no point in subscribing to broadband.

    I am an ex-telstra broadband customer and feel that it is most unlikely that I will look again at broadband for another 5 years.

    It all seemed interesting before I did sign up for Telstra's unlimited broadband but it was an excessively disappointing experience.

    To anyone out there,
    do not pay any creedence to broadband advertising, as you will not get what you think you were promised.

    PS
    I want to sell a Mars bar for ONLY $10,000- dollars but the purchaser must not eat more than 10%.
    Am I unreasonable?

    the only way to keep telstra inline is to chanage its structure , cut it back to providing only the basic essentials to telecomunications companies and let the private secter only supply sevices to the public. the ;privatised telstra gets the worse iAnonymous -- 09/10/01

    the only way to keep telstra inline is to chanage its structure , cut it back to providing only the basic essentials to telecomunications companies and let the private secter only supply sevices to the public.
    the ;privatised telstra gets the worse it becomes.
    the government should buy back the shares it sold.
    this way prices can be kept down.

    Another one bites the dust........... I just hope Optus keeps its user policy. As for broadband not being worth it, well let me tell you since having broadband I have enjoyed streaming video,live concerts and the ability to download hundereds oAnonymous -- 09/10/01

    Another one bites the dust...........
    I just hope Optus keeps its user policy.
    As for broadband not being worth it, well let me tell you since having broadband I have enjoyed streaming video,live concerts and the ability to download hundereds of mp3's,movies and the latest software. All of which I couldn't do on a dial up service. Broadband will go from strength to stregth in Australia but it seems Telstra is doing everything in its power to stop it doing so.

    What most don't know is that wholesale ISPs have to pay real $ for the Internet data that gets downloaded via their networks. These costs are naturally passed on to retail ISPs. What most ISPs gambled on was that unlimited volume users would not be consiAnonymous -- 09/10/01

    What most don't know is that wholesale ISPs have to pay real $ for the Internet data that gets downloaded via their networks. These costs are naturally passed on to retail ISPs. What most ISPs gambled on was that unlimited volume users would not be consistently downloading 100's Gb per month. I would love to know what these users are storing all that data on. iPrimus has indicated only some users "abuse" the service. These users are probably costing the iPrimus up to 3 or 4 times more than what they are receiving in subscription fees. Because of this "abuse", ISPs have had to implement download caps so they can at least break even. What these few have done is stuffed it up for everyone else that may have occasionally needed to download a lot in a month.

    I was an Optus@Home subscriber during the magical unlimited download days. I still don't understand why companies can't have a cap and then make download hogs pay for their excess downloads. Currently, I'm aware of Telstra (cable) and iHug (satellite) oMovie Downloader -- 09/10/01

    I was an Optus@Home subscriber during the magical unlimited download days. I still don't understand why companies can't have a cap and then make download hogs pay for their excess downloads. Currently, I'm aware of Telstra (cable) and iHug (satellite) offering such plans, but their services and customer support are lousy. I'd be happy to pay $100 per month for my movie downloads, as long as the service was as fast as advertised and reliable.

    A very, very basic part of selling is that, occasionally, you'll lose money on a sale (for any number of reasons). What you do is set your pricing structure so that you make a profit most of the time, and ensure that it more than makes up for anAnonymous -- 09/10/01

    A very, very basic part of selling is that, occasionally, you'll lose money on a sale (for any number of reasons).

    What you do is set your pricing structure so that you make a profit most of the time, and ensure that it more than makes up for any loss you make on 'dud' sales (or, in this case, heavy downloaders).

    Is that too difficult for the iprimus accountants to understand?

    Peace. Shooting the fair player does not earn you macho points. iPrimus tried unlimited dowload as a business. It really was fair and open. It did not work. So they gave reasonable notice and closed it down. There is no reasonable complaint. Or John Hadlow -- 09/10/01

    Peace. Shooting the fair player does not earn you macho points.

    iPrimus tried unlimited dowload as a business. It really was fair and open. It did not work. So they gave reasonable notice and closed it down. There is no reasonable complaint. Or did you expect a charity?

    The key problem is the obscene cost of data bandwidth in this country and Telstra is the culprit. No point abusing them either. If you have an effective monopoly , there is little point giving it away and letting the competitors in.

    Until the Telstra sale is complete or cancelled, there will be no long term solution as it is not in the interests of the major players.

    That a government issue. And it is no going to change this year.

    As for broadband not being worthwile. ARE YOU INSANE! The only people who could make that comment , haven't experineced it . For business, entertainment and communication it is unsurpased.

    There are so many thing I can do that I would not even try on dial up.
    I never download movies or MP3s, but I only watch news by streaming video, when ever I want and only hte stories I desire. I pick up the financial reports from NY in the morning, in original video and check the Aussie current affairs programs at my leisure. ahh the luxury. And my online gaming will never go back to dial up.

    Nice try iPrimus, I am only sorry it didn't work.

    An optus user.

    The real issue here, is that because of a few people Primus is prepared to lose everyone else. Their new plans are way overpriced but they only give you the option to cancel or pay through the nose. I was on a 12 month contract, I should have 5Anonymous -- 10/10/01

    The real issue here, is that because of a few people Primus is prepared to lose everyone else. Their new plans are way overpriced but they only give you the option to cancel or pay through the nose.

    I was on a 12 month contract, I should have 5 more months of service at the contract I agreed to. I did not abuse the service but I am paying the price. This is wrong, they will be losing my internet account AND my phone account and believe me I am more than happy to tell everyone I meet not to ever bother with Primus.

    I don't think it is possible to "abuse" an unlimited service by downloading to much. If the service is unlimited, than it is impossible to go over the limit. However, I consider Iprimus' action a cheap trick to agitate cuAnonymous -- 10/10/01

    I don't think it is possible to "abuse" an unlimited service by downloading to much.

    If the service is unlimited, than it is impossible to go over the limit.

    However, I consider Iprimus' action a cheap trick to agitate customers against fellow customers.
    Very disgusting if you think about it.

    Why do some companies DISHONISTLY offer something that they are not delivering.
    If it is not dishonisty, don't they employ anyone with average math skills?

    If they know they can not deliver, then why mislead the clients/customers.

    I don't like been lied to.

    I am an extremely frustrated iPrimus customer after receiving a letter from them that in effect tells me my 12 month contract for ADSL with iPrimus is not worth the paper it is written on. They want to terminate the service within 30 days oAnonymous -- 11/10/01

    I am an extremely frustrated iPrimus customer after receiving a letter from
    them that in effect tells me my 12 month contract for ADSL with iPrimus is
    not worth the paper it is written on.
    They want to terminate the service within 30 days or I can stay on, on a new
    plan ( capped at 1GB) ,which costs 50% more( from $74 / month to $109/
    month - their new minimum plan for ADSL ).

    I'm afraid I have to disagree with George Hazim here, how any reasonable
    minded customer could accept such highway robbery is beyond me, considering
    the fact that their upstream proivider , Telstra , is charging $73 for the
    same service ( but capped at 3GB ).

    Primus are trying to put a positive spin on the story by implying that they
    brought this about because of customer abuse ( read "people downloading more
    than they were allowed" ) but this does not count in my case ( average
    useage is +- 500MB / month - half of the cap of 1GB). In addition - there
    was always a cap on the plan - according to their web site it was always 1G.
    All they would then have needed to do is police the limit - telstra and
    optus do this, and it is preferable to putting up prices by 50%.

    Their new plan also does not take into account the "preselection" for loyal
    customers - previously there was a small ( +- $5 /month ) discount , if you
    had telephone services through Primus. This is standard industry practice,
    which they seem to be abandoning now.

    The "new" service is 50% more expensive. This is what most people are not realising, because Primus hopes they can obfuscate the issue by getting on to the "me too" bandwidth baddies bandwagon. The issue is the price increase. I was usAntony Day -- 11/10/01

    The "new" service is 50% more expensive. This is what most people are not realising, because Primus hopes they can obfuscate the issue by getting on to the "me too" bandwidth baddies bandwagon. The issue is the price increase. I was using half of the 1GB cap ( it was NEVER unlimited ). My monthly tariff will go up from $74 to $109 with no discount for using Primus's phone network - thats the simple fact which will send most users to Optus or back to Telstra.

    Other Primus ADSL users please email me , maybe we can get together to fight this.

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