atw: Exetel to offer 1.5Mbit for $25

On that horrible $29.95/month Telstra plan? This would get you all
interested:

(http://www.whirlpool.net.au)

UPDATE | Exetel has upgraded the plan to 1GB, and has confirmed to Whirlpool
that signups are being accepted from today.
----------------------------------------------------------------------------
----

Exetel has announced that on November 1st it will offer a 1.5Mbit/s ADSL
plan with 500MB usage for $25, a price point that could create a major new
flurry of competition in the broadband industry.

The company's Annette Linton says she expects Telstra will "drop all 256k
and 512k plans" before Christmas. This coupled with industry speculation
that Telstra will zero the $80 line activation fee, should create a huge
surge in broadband uptake with 1.5Mbit/s as the new entry speed.

When questioned by Whirlpool, a Telstra spokesperson did not deny that the
changes were taking place, choosing instead to reiterate that deals with
customers are negotiated on an "individual basis".

It is these changes that Exetel says will allow it to offer a 1500/256 plan
for $25/month, plus a once-off activation fee of $125.00 (with a modem) or
$175.00 (with a modem/router). The plan includes 500MB of downloads and
excess fees of only $3/GB. However, Exetel ADSL is only offered in NSW.

Price wars are about market-share, so it is no surprise to see that this
plan is only available to new customers.

This plan has the potential to turn the market on its head, repeating the
shock waves caused by Bigpond's $29.95/month 256/64 deals earlier this year.
Only one other 1500/256 plan exists in this price range from TPG, but with
$150/GB in excess fees (capped to $59.95) it quickly becomes expensive.

A similar price battle is now on the cards and profit-margins will not be
the only victim. We may soon see the end of dial-up in capital cities,
except for those few people who need hotel-room access. This will be
hastened by the pressure that these new plans will exert on the cost of ADSL
hardware, as ISPs race to make broadband a no-cost upfront proposition.

Having enjoyed an initial burst of success, the new Wireless ISPs will feel
the squeeze as new low ADSL prices swing the market back to land-line
providers.

As previously reported, TPG's foray into the cut-price 1.5Mbit market was
not a customer relations success. As the stakes for ISPs rise, users will
need to weigh the best deals carefully against the terms and conditions
which go with them.





**************************************************
To post a message to austechwriter, send the message to 
austechwriter@xxxxxxxxxxxxxx

To subscribe to austechwriter, send a message to 
austechwriter-request@xxxxxxxxxxxxx with "subscribe" in the Subject field.

To unsubscribe, send a message to austechwriter-request@xxxxxxxxxxxxx with 
"unsubscribe" in the Subject field.

To search the austechwriter archives, go to 
www.freelists.org/archives/austechwriter

To contact the list administrator, send a message to 
austechwriter-admins@xxxxxxxxxxxxx
**************************************************

Other related posts: