Time To Change ADSL Plans?

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Time To Change ADSL Plans?

Post by ForumAdmin » Sun Mar 09, 2008 10:30 am

Exetel hasn't changed its plans/prices for over a year now with the exception of some minor included peak time quota changes and the gradual increase of the off peak download allowance from 36 gb to 48 gb and the extention of the off peak period to a full 12 hours a day each day of the month.

We have added 20 free SMS, low cost fax and increased the free web space allowance but these 'add ons' don't affect the basic plans.

So I spent some time yesterday trying to determine what could be done (no reductions in Telstra, Optus or Powertel port/back haul prices have occurred as yet) so any 'reduction in prices would have to come from already paper thin profit margins - typically Exetel makes around $1.50 per month from its ADSL services which usually results in a 'breakeven' result from going to all of the expense, effort and heartache of providing ADSL to the Australian marketplaces we currently service.

With the not too distant contract end dates for our premises, IP traffic, GigE links and several other less expensive monthly costs now could be a good time to decide to get out of the ADSL business completely over the coming 12 to 18 months. It makes a lot of sense to seriously consider that option as the other 9 services offered by Exetel are now of sufficient size to provide a good, and growing income, and all deliver realistic profit levels with minimal infrastructure and support costs.

I spent much of the 'small hours' of this morning watching Manchester and Chelsea lose their respective FA cup matches while mulling this over. It has a lot to commend it and would provide a significant profit increase while it was happening as the best way of accomplishing it would be to increase all current plan prices by $5.00, $7.50 and $10.00 (depending on current monthly charges) which would immediately generate an additional $A300,000 profit a month - which would be a pleasant bonus for the past four years incredible efforts.

However as first Chelsea and then Manchester lost their respective games (which perversely cheered me up immensely after Arsenal's dismal performance in the previous round) and the extreme pain I was suffering from which had made it impossible for me to sleep eased losing its fight with the 4 Neurophins, I started looking at the other concept of producing lower cost plans. This is, obviously, much more difficult to do and after some consideration I came back to the conclusion I have always come to when trying to find ways of reducing plan costs in the absence of carrier cost reductions - it could only be done by devising plans that suit completely different sectors of the market than the current Exetel customer bases.

I had begun to devise lower costplans based on 'bundling' low cost mobile minutes and low cost telephone calls/VoIP calls and equipment which were beginning to make some sense when my mind followed my left knee's pain in being overcome by the Neurophin assault and I fell asleep.

This morning, over breakfast, I looked at the notes I had been making, at least the ones I could decipher, and there are some germs of good ideas in those 'drug influenced' thoughts. One of the concepts that, drug induced or not, appeals to me immensely as all simple ideas always do. That was the one plan fits all concept of:

1) Base monthly charge - $30.00
2) Includes 1 gb of download with additional downloads at $2.00 (no off peak allowances)
3) Speed 1500/256
4) Includes mobile sim with lowest in the market call charges
5) Includes 100 VoIP calls per gb with subsequent calls at lowest in the market VoIP rates
6) Activation charge of $145.00 - includes VoIP/ADSL pre set up modem

It needs more work but it may well be something that can produce a real result.

Les
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Post by Les » Sun Mar 09, 2008 4:19 pm

I for one think this plan has appeal.

I assume the 100 free VOIP calls excludes calls to mobiles, but maybe including some minutes for calls to mobiles at the expense loosing some of the free landlien calls might be an area for conisderation.

I would personally like to see the ADSL, VOIP R and Mobile X for combined a single monthly fee, and am quite prepared to pay for my usage at those sorts of rates.
Last edited by Les on Sun Mar 09, 2008 4:41 pm, edited 2 times in total.

ForumAdmin
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Post by ForumAdmin » Sun Mar 09, 2008 4:25 pm

Les wrote:I for one think this plan has appeal.

I assume the 100 free VOIP calls excludes calls to mobiles, but maybe including some minutes for calls to mobiles at the expense loosing some of the free landlien calls might be an area for conisderation.

I would personally like to see the ADSL, VOIP R and Mobile X for combined a single monthly fee, and am quite prepared to pay for my usage at those sorts of rates.
We'll try for something like that.

We need to get some 'accommodations' from a couple of suppliers next week.

Les
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Post by Les » Sun Mar 09, 2008 4:45 pm

I would personally sign-up for a plan that combined ADSL with the VOIP R and Mobile X plans for a single monthly fee, provided the usage costs were in-line with the current costs for those plans.

I would hope you would also bundle SMS and Fax as part of the service even if there were no included SMS or Fax, and usage charges in-line with the current costs for those services.

You may also want to consider offering multiple Mobile SIMs as standard, or offering additional SIM's at a low monthly fee so as to capture the mobile spend of the users spouse and family members.

I would also still require the ability to subscribe for in-bound VOIP, SMS and Fax numbers for for a low monthly fee and would like if you added the ability to allow for users to subscribe for a multipe DID numbers in different area codes for the single VOIP service.

DarkLotus
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Post by DarkLotus » Sun Mar 09, 2008 5:38 pm

I can see the upside of an idea like this, but what about people who only want internet.

I dont use a mobile phone, and i make less than 5 calls per week.

A change to this scheme would see me go from 72gb total on 1500/256 down to 18.5gb for the same price.

I understand your making a very small profit margin, but at least for me this would be devastating.

I would cop a $5 price rise rather than a 50gb quota cut.

Is it more cost effective at all for people who like downloading to do it in off peak? I'm sure a lot of us would happily swap peak data for off peak data.

cryptwizard
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Re: Time To Change ADSL Plans?

Post by cryptwizard » Sun Mar 09, 2008 6:11 pm

ForumAdmin wrote: 1) Base monthly charge - $30.00
2) Includes 1 gb of download with additional downloads at $2.00 (no off peak allowances)
3) Speed 1500/256
4) Includes mobile sim with lowest in the market call charges
5) Includes 100 VoIP calls per gb with subsequent calls at lowest in the market VoIP rates
6) Activation charge of $145.00 - includes VoIP/ADSL pre set up modem

It needs more work but it may well be something that can produce a real result.
Something similar with ADSL2+ would be nice, but I know it will cost slightly more.

tocpcs
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Post by tocpcs » Sun Mar 09, 2008 8:11 pm

The plan has merits, so long as the existing plan structure is maintained (so grandfathered), and offer alternatives for those who don't want VoIP / Mobiles (so straight up broadband).

Perhaps look at the iiNet bundled offers for example, which simply take a base product, add VoIP, and you get more quota.

That said though, I say Exetel shouldn't base it's business from iiNcompetent iiNet.

SIGGY
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Post by SIGGY » Sun Mar 09, 2008 8:36 pm

DarkLotus wrote:I can see the upside of an idea like this, but what about people who only want internet.

I dont use a mobile phone, and i make less than 5 calls per week.

A change to this scheme would see me go from 72gb total on 1500/256 down to 18.5gb for the same price.

I understand your making a very small profit margin, but at least for me this would be devastating.

I would cop a $5 price rise rather than a 50gb quota cut.

Is it more cost effective at all for people who like downloading to do it in off peak? I'm sure a lot of us would happily swap peak data for off peak data.
Please please !! dont change the plans to this i would have no worrys paying and extra $ 5 to keep my 48gb's most of us are with exetel because of the off peak i really hope exetel doesnt change these plans :(

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Post by ForumAdmin » Sun Mar 09, 2008 10:23 pm

SIGGY wrote:
DarkLotus wrote:I can see the upside of an idea like this, but what about people who only want internet.

I dont use a mobile phone, and i make less than 5 calls per week.

A change to this scheme would see me go from 72gb total on 1500/256 down to 18.5gb for the same price.

I understand your making a very small profit margin, but at least for me this would be devastating.

I would cop a $5 price rise rather than a 50gb quota cut.

Is it more cost effective at all for people who like downloading to do it in off peak? I'm sure a lot of us would happily swap peak data for off peak data.
Please please !! dont change the plans to this i would have no worrys paying and extra $ 5 to keep my 48gb's most of us are with exetel because of the off peak i really hope exetel doesnt change these plans :(
This would be a new plan - we understand very few current Exetel users would be interested in such a plan - but there are other markets.

nihonjin
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Post by nihonjin » Mon Mar 10, 2008 9:57 am

Currently i spend about $100 per month on:

Internet $40
Mobile $30
Landline incl all calls and rental $30

I am on the ADSL2+ no phone $40 with 8G Peak and 48G off Peak

I spend $30 for mobile and get $140 worth of calls.

I use voip and i am on the telstra budget so $30 is all i spend for all calls and line rental.

If exetel could come up with a bundle to still give me the same value i would be happy to spend $100 per month with exetel instead of only $40.

ForumAdmin
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Post by ForumAdmin » Mon Mar 10, 2008 1:15 pm

nihonjin wrote:Currently i spend about $100 per month on:

Internet $40
Mobile $30
Landline incl all calls and rental $30

I am on the ADSL2+ no phone $40 with 8G Peak and 48G off Peak

I spend $30 for mobile and get $140 worth of calls.

I use voip and i am on the telstra budget so $30 is all i spend for all calls and line rental.

If exetel could come up with a bundle to still give me the same value i would be happy to spend $100 per month with Exetel instead of only $40.
You 'hit the nail on the head'.

Trying to find the right pricing for all three services is the hard bit.

10 cent untimed local and national VoIP calls is simple.

Low cost mobile and international VoIP calls is simple.

Mobile calls - 35 cents per minute / no flagfall is about the best we can see

We would need to put minimum spends on the mobile and VoIP monthly spends or raise the base price of the 1500/256 plan (and being a person who loves simplicity I prefer the simplest view of that.

I can't see how we can offer the VoIP modem/router at a good enough price though and may have to go with the equipmentless VoIP option.

The provisioning issues are my only hang up at the moment.

Looking at our ADSL1 user base, I think something along these lines would be very attractive to new users.

Doing the same thing on a naked ADSL2 service will be a challenge but, maybe, possible but at a higher base price. (and I haven't begun to work that out yet).

nihonjin
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Location: Brisbane

Post by nihonjin » Mon Mar 10, 2008 2:28 pm

best of luck.

I hope you succeed.

alburyman
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Post by alburyman » Mon Mar 10, 2008 5:29 pm

Didnt prices go up $10? When i joined 15 months ago i was paying $76, now im paying $86?! And that price rise is under 12 months.

SIGGY
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Location: NSW

Post by SIGGY » Mon Mar 10, 2008 6:30 pm

So is this final so it really is the end of bang for buck from exetel ? meaning are the plans definitly going to be changed & the end of off peak ?

** edit & also will all people who signed up before the plan change stay on the old plan with 48gb off peak ?

CoreyPlover
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Post by CoreyPlover » Mon Mar 10, 2008 6:44 pm

SIGGY wrote:So is this final so it really is the end of bang for buck from exetel ? meaning are the plans definitly going to be changed & the end of off peak ?

** edit & also will all people who signed up before the plan change stay on the old plan with 48gb off peak ?
This announcement doesn't make any comment about any changes to existing plans. It is just ForumAdmin's thoughts in trying to introduce a new low-cost, low-usage to complement Exetel's existing plans

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