Tuesday, 08 September 2020 08:29

Aussie Broadband offers its reasons for price rises on some plans Featured

Aussie Broadband offers its reasons for price rises on some plans Pixabay

ISP Aussie Broadband has responded to the points raised in these columns on Monday about its decision to raise prices. The response was sent to me.

Given that the op-ed in question ran as a regular article, the company has been afforded the same treatment.

The response has been used in full, with only minor tweaks for style and grammar.

"[We] understand the confusion, but let’s try to make it really clear:

"We are only increasing prices for plans that are not currently making any money, or on which we are losing money.

"This largely affects our 100Mbps plans, and legacy plans that have been around for a while.

"We are not making any money on these plans for a number of reasons, including:

"Customers in the 100 speed tier are using more peak-time data than NBN Co has allowed for in its wholesale product, and thus we’re paying “overage” to avoid congested services (as a comparison, people on 100 Mbps plans use about 100% more peak-time data than those on 50 Mbps plans yet NBN Co only has 60% more CVC included).

"Other costs across the network and business have also gone up.

"We’ve held off introducing this price rise because of COVID-19, but we’ve reached the point where we really have to go ahead.

"It is our commercial choice to aim for a congestion-free network; other ISPs will be making other commercial choices about the quality of their product versus price.

"To address your specific concerns:

"In July, we flagged our concerns about the CVC construct and how it causes uncertainty for ISPs because customers’ usage patterns are constantly changing, and predicted that it would affect prices in the future. That is part of the reason why our prices are increasing.

"NBN Co charges us a different wholesale price on the 100/20 plan to what it offers on the 100/40 plan, which is why we can offer to adjust your upload speed down and have the plan remain at the same price.

"If we were using COVID-19 as an excuse to put this price rise through, we’d be doing it for all our other speed plans (12/25/50/250/1GB) but we’re not. The inclusions with those wholesale speed tiers are enough for us to be making some profit on those plans (at the lower speeds, customers don’t use as much data and the high speed plans have much bigger inclusions from NBN Co in the wholesale bundle).

"As an example, NBN Co’s next change to the CVC inclusions is in May 2021 and we believe the usage pattern we are seeing on the 50/20 unlimited will make it through until then."

Katrina Salhioui, media and communications officer, Aussie Broadband.

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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