Another Price Increase - AFTER the Whirlpool voting finished

[QPR_FC]

Hi,

I know there are some threads (check out whirlpool) already discussing the email that most of us received last night about the $5 price increase, just a month after the 10c charge was introduced on VOIP calls.
Oh, and a couple of months after ISP voting for the year has been exercised...I might add!

I've been with Exetel for many years, although I have moved house many times and keep getting treated like a new customer with a new contract term....anyway, I'm out of contract as at last month, however on the NAK2C plan and with the naked part, I'm pretty much locked in unless I want to go through the costly exercise of reconnecting with Telstra and then joining another ISP with naked plans & VOIP.
Can't believe there are no 'naked' churns available in this day and age!!!

Right, back to prices. Each year I get an email like this from Exetel, informing me that they are near poverty and need to increase prices. Firstly, if that's the case then shut up shop and do something else that makes you happy...oh and earns money!!!
The frustrating thing is, is that if I choose to stay with Exetel, I have to pay $10 to change plans to a newer one as a result of their price increase on my existing plan.
The new plans are actually better value for me, so I don't see how they are losing money in providing me with my current plan, but are 'encouraging me' (through price increases) to change plans where I will get 6gb more download for $15 less...huh?!?!?

NAK2C 24gb/60gb $65 + VOIP 10c each = $65 + $5 increase = $70

NF/22NOTEL 30gb/60gb + VOIP 10c each = $55

Sorry, needed to get it off my chest.

PS. my iPhone 3GS Virgin data connection is six times as fast as my ADSL2+ syncing at 13000 (I live 1.2kms from exchange)
Results from Speedtest.net:
Exetel = 490kbps or 0.48Mbps or 61.2kB/s
iPhone Data Package = 3409 or 3.33Mbps or 426.1kB/s

So, Exetel will you waive the $10 change of plan fee if I change to a plan which makes you money?

PPS. Just called Exetel sales to see if they would make the plan change at no cost and was told outright "NO". The sales person had no comment to make regarding the 'unfairness' of this issue, either pay $5 per month extra or pay $10 now to change plan.

[jokiin]

The sales person had no comment to make regarding the 'unfairness' of this issue, either pay $5 per month extra or pay $10 now to change plan.

it will cost you $10 once off to change to a plan that's $15 a month cheaper, isn't that a good thing?

[QPR_FC]

Hi,

So, Exetel will you waive the $10 change of plan fee if I change to a plan which makes you money?

What a complete disappointing response.
If I wanted to change plans, I would have done so on my own doings....not being forced to choose one at $10, or suffer another increase in monthly fees.

You didn't even answer the question. Why didn't you answer the question? That's a rhetorical one!
So, Exetel will you waive the $10 change of plan fee if I change to a plan which makes you money?

I hear on whirlpool (I would go there and 'feel' some of the animosity amongst your customers by the way) that the change of plan fee was introduced immediately after the fee increase email was sent out. Some managed to get in before the site started charging $10.

Do you need a capital injection or something?

Am I correct in thinking that I do not need to enter into a new contract when changing plans? As my contract expired last month.

[CoreyPlover]

So, Exetel will you waive the $10 change of plan fee if I change to a plan which makes you money?

This has already been answered and the answer is "no".

Do you need a capital injection or something?

I'll assume that one is rhetorical. And while I'm not privy to Exetel's operations there are numerous posts by Exetel founders which adamantly deny that Exetel is in business to generate profit. Seems contrary to what you might think but you only need to learn about some of Exetel's recent actions to recognise their altruistic nature (free(!) upgrades for users on compatible ADSL1 infrastructure to cheaper and faster ADSL2+, continual increases in download quota while you are still on contract, etc).

Now we have what on the surface is a $5 increase in fees, but in reality is simply an encouragement for users to look at Exetel's current plans and find one that saves you money. Many users are able to do so and save $5-10 per month and/or get higher download limits (see http://forum.exetel.com.au/viewtopic.php?f=288&t=35455 for instance).

Am I correct in thinking that I do not need to enter into a new contract when changing plans? As my contract expired last month.

So long as you stay within the same plan family (bundled, naked or BYO) there is no extension of contract.

[Ravenous]

The sales person had no comment to make regarding the 'unfairness' of this issue, either pay $5 per month extra or pay $10 now to change plan.

It has been said before that the change plan fee is demand driven. My bet is that it going to increase as we head towards the end of the month as, speculating, most people will leave their decision to change later rather than sooner in the month.

Or on the flip side wait until everything calms down towards the end of April you may find the 'change plan' fee head back $0. Unless I am missing something here?

[drupe]

I just spoke to sales on the phone about this $10 change plan fee and they confirmed it cannot be waived and that a lot of customers have been ringing up complaining about this. No surprises of course!

I am going to change plan though, I'm over-serviced anyway and I can save money, plus the sales person said that the $3 direct debit processing fee is not part of the new plans. I'm just disappointed, I feel like I'm being mislead as it doesn't make sense to whack your customers with a once off fee for moving to plans that are more affordable to Exetel.

BTW, the agreement on the change plan page says this of the change plan fee:

If you move to another plan, there will currently be a charge of $10.00. The charge for changing plans varies from time to time and you should check close to the time that you are considering changing plans.

[jokiin]

I am going to change plan though, I'm over-serviced anyway and I can save money, plus the sales person said that the $3 direct debit processing fee is not part of the new plans. I'm just disappointed, I feel like I'm being mislead as it doesn't make sense to whack your customers with a once off fee for moving to plans that are more affordable to Exetel.

as you mentioned just now, you will save money, not just Exetel

BTW, the agreement on the change plan page says this of the change plan fee:

If you move to another plan, there will currently be a charge of $10.00. The charge for changing plans varies from time to time and you should check close to the time that you are considering changing plans.

correct, it has been free in the past, it has also been $90 in the past though, $10 is certainly a lot more reasonable than $90

[drupe]

Regarding the $90 amount to change plan, what is the context of that amount? Ie, was it applicable if you had served the minimum term of your contract?

[jokiin]

Regarding the $90 amount to change plan, what is the context of that amount? Ie, was it applicable if you had served the minimum term of your contract?

yes it was, only happened for a limited time

[CoreyPlover]

Regarding the $90 amount to change plan, what is the context of that amount

I think mainly it was a high nominal amount to help alleviate the high number of plan change requests at that time. Once the volume of plan changes reduced, it was removed.

[drupe]

Thank you for your replies.

I hope you understand all I am trying to do here is to make sense of this charge, because it doesn't make sense. I need to understand it because at present this type of charge lacks transparency, and could be applied to my (and others) accounts again.

What was the full context of the $90 amount? Had Exetel announced new accounts that had such outstanding value that there was an unusually high demand for these accounts by existing users?

Note that this is not comparable to the situation now, it is opposite in fact. While some plans may be better value, the existing plans have had their value reduced by nature of an extra monthly charge. Users are not changing plans to receive higher value, they are doing so to avoid getting less value.

[Klaas]

As an aside, and not directed at anyone in particular, I don't understand why people believe that a business needs to justify their pricing strategy or the changes they make to it.

Is it just ISPs that get this close examination, or do people also ask their phone company, for example, why their prices have changed?

Businesses change pricing to cover changed costs, and to manage demand (higher pricing decreases demand, lower pricing increases demand).

[Mixer]

Right, back to prices. Each year I get an email like this from Exetel, informing me that they are near poverty and need to increase prices. Firstly, if that's the case then shut up shop and do something else that makes you happy...oh and earns money!!!

Exetel are very open about the fact that they are running their business at break even plus a moderate profit.
That is how you and I get the value we do.
All this hoo haa about $10 and the frequency of plan changes.
Get with the programme guys learn to adapt to change and survive. Ten bucks over 12 months = nothing.

[Ravenous]

Drupe,

To place a 'positive' spin, the change speed on ADSL1 has indeed reduced from $25 to $10 so there are a few winners out of the current situation.

What was the full context of the $90 amount?

This John Linton Musing preceeded the temporary $90 plan change fee hike during early Feb 2010.

Edit: See post below. I forgot about that one and it was in response to one of my own posts

[CoreyPlover]

This John Linton Musing preceeded the temporary $90 plan change fee hike during early Feb 2010.

Actually, Drupe, http://forum.exetel.com.au/viewtopic.ph ... 87#p267587 is probably the most direct response to the $90 plan change fee that you will get from senior Exetel management