Dan Warne21 February 2007, 10:38 AM
Telstra is cutting speeds and raising prices on its four-month-old Next G wireless broadband network, while simultaneously introducing three year contracts.
UPDATE | Telstra spokesman Craig Middleton says, "This pricing reflects the fact that it's the best product on the market for wireless broadband. If you want to travel first class, you'll be prepared to pay more. If you want to travel on the bus with our competitors..."
Middleton denied that the price rises were related to capacity limitations on the network. "Absolutely not, this is a premium product," he said.
"If APC doubled its circulation, your advertising sales guys would be out there putting prices up, wouldn’t they. It’s just a commercial reality… it’s a $5 increase and it’s the best product on the market," he said.
Middleton was keen to point out that the new pricing only affects new customers and that twelve month contracts were still available if people were prepared to forego the six month half-price discount.
 Telstra boss Sol Trujillo: now charging BigPond customers more for less |
Telstra is raising prices and reducing speeds on its wireless broadband just months after switching on its you-beaut Next G network.
Prices on BigPond Wireless plans will be raised across the board by $5, except for the most expensive $200 plan, which will fall by $15.
A dealer bulletin leaked to APC outlines the changes in detail. [Telstra has taken down the dealer bulletin to prevent APC readers from looking at it, but its public website now shows the updated pricing.]
BigPond will also dramatically reduce the value of its 'half price' promotion, which previously offered customers half price for the first 12 months of a 24 month contract.
Under new rules, customers will only get the first 6 months half price on a 36 month contract (one sixth of the total length of the contract, compared to half in the previous deal.)
In an ironic demonstration of Telstra's desire not to lose its vice-like grip on monopoly landline revenues, customers who want the half price rates for wireless broadband must also have a wired phoneline, with all their local and long distance calls preselected to Telstra.
The bad news doesn't end there. Telstra previously offered a $29.95 plan with 10 hours usage at up to 1.5Mbit/s speed, but this has been cut back to 256Kbit/s -- equivalent to the slowest ADSL available.
A BigPond spokesman was not immediately available to comment on the reason behind the price rises. However, an FAQ for Telstra dealers states that the new requirement for a 36 month contract is "just part of the terms and conditions of the offer, just like the lifecycle of a laptop."
Telstra's mobile division now undercuts BigPond
Since Telstra's 3G network was switched on, there has been an odd tug-of-war between Telstra BigPond and Telstra Business Mobile, each undercutting the other from time to time with pricing revisions.
When Next G was introduced, BigPond's plans were better value than Telstra Mobile's across the board, but some of Mobile's plans are now more attractive.
For example, the $29.95 10 hour plan has uncapped speed on Telstra Mobile, but, as noted above, has been reduced to 256Kbit/s on BigPond.
A 1GB plan is $15/mth cheaper with Telstra Business Mobile at $99, rather than BigPond's $115.00.
UPDATE | Telstra has also raised Business Mobile pricing overnight, largely increasing rates to the same as BigPond's.