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Internode chops ADSL prices

Internode chops ADSL prices
May 7, 2008
 | 7 Comments 
Tags: Internode | ADSL
But what's the best deal on the block? Internode's new plans are good for Usenet, but we've found better.
ISP Internode fired a salvo this week in what could hopefully become a budget ADSL price war, announcing it's chopping $5 off the price of its "ADSL Plus" plans. These offer up to 8Mb/s, and now start at $69.95 per month. $5 might not seem like much per se, but it's good to see at least some competition; while there's plenty of jousting in areas such as wireless and Naked DSL, poor old ADSL plans have been rather stagnant for some time.

Internode's offering is an interesting one, with features including premium Usenet access (for all those *ahem* legitimate files you need to download rapidly without anyone knowing) and an "expectation" of better speeds than the company's standard 1.5Mb/s, although there's no specified guarantee of better speeds.

Checking around, Internode's offer is a good one, as long as you take the additional services such as premium Usenet into account. Having said that, you can still get a lot more data for $70 than Internode's offering on these plans -- and given the variability of line speeds, we'd argue that data is the most important base metric for any broadband plan, as it's the one thing you can rely on getting each and every month.

Even Internode's own ADSL 2+ plans outpace the value of ADSL Plus; $75 will get you 40GB of ADSL2+, and there are even better plans out there. If you're in a coverage area, TPG's $69.99 ADSL2+ Super Heavy 2 plan, will give you a whopping 150GB of downloads, although you'll have to sneak 110GB of that data inbetween 3am and 9am. On the wireless front, $55 a month could get you 6GB of downloads via 3 Mobile, albeit in a rather limited sphere of availability.

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Comments: 7
danwarne
May 7, 2008 12:27 PM
You can buy more potato chips if they're Homebrand -- doesn't mean they taste as good as Pringles or don't come broken up in the bag. Comparing TPG (which proxies web traffic through a frequently broken and slow proxy, based on the reader complaints we receive at APC) with Internode (which consistently rates at the top of customer satisfaction lists in Whirlpool surveys) is a fraught comparison in my opinion...!

And, of course ADSL2+ plans outpace 8Mbit/s plans -- the 8Mbit/s plans are resold Telstra Wholesale plans, while ADSL2+ is provided through ISPs' hardware directly. No-one would order an 8Mbit/s plan if an ADSL2+ plan was available to them.

The point behind Internode's repricing of 8Mbit/s plans was not to spark a price war in ADSL, but rather to bring their pricing in line with BigPond's pricing for 8Mbit/s. Telstra sells 8Mbit/s at such a high wholesale price that it has been difficult for any ISPs to sell at retail at the same price as BigPond. Internode has evidently decided it doesn't want BigPond getting all the 8Mbit/s customers, even if it means it has to take a smaller margin on those plans -- and it also allows Internode to offer a fast broadband service to people who can't get any ADSL2+ coverage but Telstra, and don't want to pay Telstra's disproportionately high ADSL2+ rates.


Comment made about the PC Authority article:
Internode chops ADSL prices?
But what's the best deal on the block? Internode's new plans are good for Usenet, but we've found some better deals out there.

What do you think? Join the discussion.
geller
May 7, 2008 1:48 PM
Please dear Minister for Communications, allow these guys access to ADSL2+ wholesale.

I've got to say, naked is the way to go if you're after a basic plan - it's $10 cheaper pretty much across the board at the entry level. If you want 10GB+ it's not going to be your cup of tea, but otherwise I'm recommending it to friends. My pick is iiNet for Naked.
Alex Kidman
May 7, 2008 5:48 PM
I don't entirely disagree with you Dan, except that all these things are relative; one person's connection can be excellent while others suffer due to poor modems, dodgy wiring, etc, etc. Hence why I qualified against Data -- it's the only thing that any ISP (including Internode) will guarantee. I'm not sure how one ISP (Internode) against another (Telstra) and dipping prices isn't at least price competitive, if not a war -- and who doesn't enjoy a good war, anyway?

Actually, within a certain distance bracket (above around 4km from the exchange) there is a spot where you would be better off with ADSL rather than ADSL2+, although again whether you'd see a large difference is debatable.
jonsey151
May 7, 2008 8:12 PM
in reply Alex, its all great to have a plan that is 150 gb a month. However, if you can not get that much per month then it is just an advertising ploy. I would dare say that not a single person on TPG could download there entire 150 gb quota in a month. Not from lack of trying but because of the network my 2 cents. At least with Internode what they advertise they can deliver at full speed and not having to download at peak and off-peak times.

I believe the method of comparing the ISP's is seriously flawed.
Alex Kidman
May 8, 2008 12:11 PM
I'd be all ears for a better methodology of comparing baseline ISP offerings (sans line testing, etc). TPG's offering was chosen not because I'm an apologist for them -- I too have heard the horror stories, and it's exactly why I noted that the off-peak window is amazingly small in the final para of the story -- but simply because it provides the most stark example of the disparity between ADSL and ADSL2+ offerings. When even wireless (itself a very limited area medium, and very costly) is outpacing ADSL, and plenty of people are stuck with ADSL, something's rather wrong...
blockcentre
May 8, 2008 9:14 PM
geller wrote:
Please dear Minister for Communications, allow these guys access to ADSL2+ wholesale.


Yeah, good luck with that one. Conroy has given Telstra the all clear to monopolise ADSL2+ just so that they will play nice and build a FTTN network. The sad part is that we will be spending $5Bil of taxpayer dollars so that Telstra can end up charging us whatever they like for the network they own and don't have to share.

Definitely a step in the wrong direction.
^Woody
May 17, 2008 10:19 AM
yeah wouldnt that be real nice
1/- a simple method of evaluating isp's that comes anywhere near being seriously usefull and saving people the ridiculous se5tup fee to find out just how bad some of them are LOL wont ever happen

2/- Telstra being fair while they own the monopoly on the hardware to connect the majority of internet users to the net (and why the hell are we buying Telstra a new monopoly just so they can bend us over a barrell AGAIN)

yeah well who knows what santa mighht bring us
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