WA-based Internet Service Provider iiNet has slapped a price tag on its high-speed Internet access lines that it claims should scoop 'better savings' for customers.
Australia's top carrier Telstra set the pace for Asymmetrical Digital Subscriber Line (ADSL) pricing in early August with a "best price" flat fee of AU$78 per month for residential customers and a AU$73 a month fee for business accounts.
At first glance iiNet, which plans initially to resell Telstra's wholesale ADSL product, tops the number one telco's fees at AU$85 per month for residential customers or a higher end product for AU$125 a month.
So where are the "better savings" for customers?
Well, with Telstra's pricing plan there's a catch. In order to achieve its best price, users are required to pre-select Telstra as their long-distance carrier.
Telstra ADSL customers who pre-select an alternative carrier can expect to pay a higher price -- AU$94.50 a month for residential access and AU$89.50 per month for business customers.
"It shows [Telstra] think they can't make enough profit out of ADSL alone," ISP analyst Paul Montgomery said, "and are making sure they skim profits off more than one service to make the whole thing viable".
iiNet, on the other hand "doesn't impose that requirement," iiNet executive director, Andrew Milner told ZDNet Australia.
iiNet's customers can choose their preferred long-distance telephone provider and aren't penalised with higher pricing, therefore customers can "more effectively leverage their voice and data services to improve cost savings," Milner said.
Montgomery believes that Telstra is using its monopoly carrier position to undercut wholesale ADSL.
"The whole system is Telstra's way of making it completely untenable for any other ISPs to make profits from reselling Telstra's wholesale ADSL service," Montgomery said.
Why bother with either.
Eftel www.eftel.com has unlimited/no shaping/no min sign up period plans.
$50 256
%69 500