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New Concept ADSL Plans

Posted: Tue Sep 30, 2008 2:45 pm
by ForumAdmin
We have been considering a new type of ADSL plan that has no included download but the customer simply pays for what he/she uses each month.

We have used this concept in the introduction of the HSPA services and have experimented with it in the inctelephoney plan.

Our current thoughts are to introduce a new range of this sort of plan for new users who might like the idea of only paying for what they use in any given month rather than getting the feeling that their lack of use of their included downloads just benefits other users rather than themselves.

As we have built the current business on the plan types all current users have selected it isn't our intention to discontinue the current type of plan and the current plan 'constructions' wil remain.

Perhaps you'd like to comment on our ideas and make other suggestions before any decision is made on this issue.

The current pricing is likely to be:

ADSL1

256/64 - $25.00 monthly service charge

512/128 - $35.00 monthly service charge

1500/256 - $40.00 monthly service charge

8192/384 - $65.00 monthly service charge

ADSL2 - Naked

$42.50 monthly service charge

ADSL2 + Telephone Line Rental

$50.00 monthly service charge rental

Data Download Charges

12 noon to 12 midnight - $1.30 per gb or part thereof

12 midnight to 12 noon - $0.35 per gb or part thereof.

Re: Possible New Concept ADSL Plans

Posted: Tue Sep 30, 2008 3:10 pm
by Aquard
With the ADSL1 plans, aside from the 256k, Exetel already offer plans at those prices with generous download quotas... for that reason, the plan type wouldn't appeal to me.

For someone like my mum, an 'elder' user, the concept may appeal, but I feel a set limit plus shaping would win for her rather than an unknown amount.

I can only see it being taken up by very low quota users, as using any more than a few gig would take the cost above current ADSL1 offerings.

Re: Possible New Concept ADSL Plans

Posted: Tue Sep 30, 2008 3:27 pm
by hornet48
I like the concept.

... and lower monthly access charges would make them attractive to me.

Maybe if you defined who your prospective customers would be?

For example, if you were targeting customers of other ISPs who have "honeymoon" accounts (with low capacities (200MB!) and high usage charges) - you might have a base account with say 1 GB/mo and increase the usage charges slightly.

... and similarly, if you were targeting current dialup customers.

The HSPA plans were attractive to me - as a replacement of my "backup" dialup facility.

Regards,

H.

Re: Possible New Concept ADSL Plans

Posted: Tue Sep 30, 2008 4:26 pm
by ForumAdmin
hornet48 wrote:I like the concept.

... and lower monthly access charges would make them attractive to me.

Maybe if you defined who your prospective customers would be?

For example, if you were targeting customers of other ISPs who have "honeymoon" accounts (with low capacities (200MB!) and high usage charges) - you might have a base account with say 1 GB/mo and increase the usage charges slightly.

... and similarly, if you were targeting current dialup customers.

The HSPA plans were attractive to me - as a replacement of my "backup" dialup facility.

Regards,


H.

Re: Possible New Concept ADSL Plans

Posted: Tue Sep 30, 2008 4:27 pm
by ForumAdmin
I think there are hard financial times coming.

I think that some significant percentage of ADSL users, in Exetel's case over 50% use less than 1 gb on 256 plans and the percentage holds true at 512/2gb, 1500/4 gb.

Almost 40% of ADSL2 users (again Exetel users) use less than 3 gb.

It's my guess that Telstra users are a higher percentage at these low levels and I would think that would also be true for all of the other 'larger' ISPs.

$1.00 per gb is awfully cheap and the 'off peak' charge of $0.25 per gb is almost so tiny it wouldn't register - but many customers use their service in the mornings.

For those people who have never seen a depression in Australia (or have been fortunate enough to not have to pay bills in that time) you won't realise how scarce money becomes.

I think that there are going to be a quite large number of people (and undoubtedly some Exetel customers) who might like to keep their internet but reduce their payments for a period of time.

The HSPA service will be ideal for this scenario below 2 gb but for those who need 4 or 5 gb then this type of plan would be very useful.

I could be quite wrong.

Re: Possible New Concept ADSL Plans

Posted: Tue Sep 30, 2008 8:19 pm
by Need2No
ForumAdmin wrote:We have been considering a new type of ADSL plan that has no included download but the customer simply pays for what he/she uses each month.



ADSL2 - Naked

$42.50 monthly service charge

Data Download Charges

12 noon to 12 midnight - $1.00 per gb or part thereof

12 midnight to 12 noon - $0.25 per gb or part thereof.
I'm all for this, as it would suit me to a tee. I have always been a light to medium user, with occasional splurge when d/l a linux iso etc. When my plans have been rehashed, or increase in d/l quota, I never worried about using the off peak period as there was no advantage to me.



Regards

Re: Possible New Concept ADSL Plans

Posted: Tue Sep 30, 2008 9:04 pm
by vk3xem
A very interesting concept and worth commending Exetel. As ForumAdmin points out many people are going to struggle with the way the economy is going. Rather than loose customers it is great idea to have the option to keep the cost to a bare minimum.

If there is still the option to shape on these plans, even if it a minimum of 1 ~ 5 Gig is required that would make it an ideal way to cap the cost each month for those on a strict budget.

About the only other thing I can think of to make it easier for customers to have the option to make early part or full payments before the bill is due via credit card, this could make it easier for some to budget also.

Re: Possible New Concept ADSL Plans

Posted: Wed Oct 01, 2008 8:58 am
by dbr
Nice concept. I've plotted some usage patterns on the attached spreadsheet, for anyone interested (only for ADSL2 - Inc & Naked). You can compare to current plans and also see what it would cost for different download patterns.
vk3xem wrote:About the only other thing I can think of to make it easier for customers to have the option to make early part or full payments before the bill is due via credit card, this could make it easier for some to budget also.
I'd agree with this. I know people who like to use this facility for other bills e.g. pay $12 a week instead of $48 a month.


I had planned to attach a spreadsheet, however I could not attach an .xls or .pdf (rules) and the conversion to jpg made the file too big, or unreadable. Sorry. If anyone is really interested, PM me your email and I'll send it. :?

Re: Possible New Concept ADSL Plans

Posted: Wed Oct 01, 2008 1:12 pm
by Country Bumkin
I had planned to attach a spreadsheet, however I could not attach an .xls or .pdf (rules) and the conversion to jpg made the file too big, or unreadable. Sorry. If anyone is really interested, PM me your email and I'll send it. :?
I suggest you save the spreadsheet as a .CSV file and include it in a posting using the 'Code' facility. Readers can then cut & paste to their own spreadsheet.

Regards C Bumkin

Re: Possible New Concept ADSL Plans

Posted: Wed Oct 01, 2008 2:14 pm
by dbr
It's not very exciting, but considering you went to the effort to provide a solution (thanks Mr Bumpkin), and in the interests of me learning a new facility, the spreadsheet is below.

To line it all back up in the cells, copy and paste the data below into a text editor (eg notepad). Save it as a something.csv then open the .csv with Excel. Of course, you don't get the nice borders and colour highlighting, nor the formulas to play with, but you'll get the idea - I think....

Code: Select all

,ADSL 2 INCPHONE,,,,,,,,,,,,,,,,,,,,,,,
PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
OFF PEAK GB,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0
COST,$51.00,$52.00,$53.00,$54.00,$55.00,$56.00,$57.00,$58.00,$59.00,$60.00,$61.00,$62.00,$65.00,$68.00,$70.00,$75.00,$80.00,$90.00,$92.00,$100.00,$104.00,$122.00,$125.00,$150.00
,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,Z,,A,,,B,,C,,D,E,,
PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
OFF PEAK GB,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48
COST,$63.00,$64.00,$65.00,$66.00,$67.00,$68.00,$69.00,$70.00,$71.00,$72.00,$73.00,$74.00,$77.00,$80.00,$82.00,$87.00,$92.00,$102.00,$104.00,$112.00,$116.00,$134.00,$137.00,$162.00
,,,,,,,,,,,,,,,,,,,,,,,,
,Y,,,,,,,,,,,,,,,,,,,,,,,
PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
OFF PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
COST,$51.25,$52.50,$53.75,$55.00,$56.25,$57.50,$58.75,$60.00,$61.25,$62.50,$63.75,$65.00,$68.75,$72.50,$75.00,$81.25,$87.50,$100.00,$102.50,$112.50,$117.50,$140.00,$143.75,$175.00
,,,,,,,,,,,,,,,,,,,,,,,,
PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
OFF PEAK GB,2,4,6,8,10,12,14,16,18,20,22,24,30,36,40,50,60,80,84,100,108,144,150,200
COST,$51.50,$53.00,$54.50,$56.00,$57.50,$59.00,$60.50,$62.00,$63.50,$65.00,$66.50,$68.00,$72.50,$77.00,$80.00,$87.50,$95.00,$110.00,$113.00,$125.00,$131.00,$158.00,$162.50,$200.00
,,,,,,,,,,,,,,,,,,,,,,,,
PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
OFF PEAK GB,4,8,12,16,20,24,28,32,36,40,44,48,60,72,80,100,120,160,168,200,216,288,300,400
COST,$52.00,$54.00,$56.00,$58.00,$60.00,$62.00,$64.00,$66.00,$68.00,$70.00,$72.00,$74.00,$80.00,$86.00,$90.00,$100.00,$110.00,$130.00,$134.00,$150.00,$158.00,$194.00,$200.00,$250.00
,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,
,Naked ADSL,,,,,,,,,,,,,,,,,,,,,,,
PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
OFF PEAK GB,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0
COST,$43.50,$44.50,$45.50,$46.50,$47.50,$48.50,$49.50,$50.50,$51.50,$52.50,$53.50,$54.50,$57.50,$60.50,$62.50,$67.50,$72.50,$82.50,$84.50,$92.50,$96.50,$114.50,$117.50,$142.50
,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,Z,,A,,,B,,C,,D,E,,
PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
OFF PEAK GB,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48,48
COST,$55.50,$56.50,$57.50,$58.50,$59.50,$60.50,$61.50,$62.50,$63.50,$64.50,$65.50,$66.50,$69.50,$72.50,$74.50,$79.50,$84.50,$94.50,$96.50,$104.50,$108.50,$126.50,$129.50,$154.50
,,,,,,,,,,,,,,,,,,,,,,,,
,Y,,,,,,,,,,,,,,,,,,,,,,,
PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
OFF PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
COST,$43.75,$45.00,$46.25,$47.50,$48.75,$50.00,$51.25,$52.50,$53.75,$55.00,$56.25,$57.50,$61.25,$65.00,$67.50,$73.75,$80.00,$92.50,$95.00,$105.00,$110.00,$132.50,$136.25,$167.50
,,,,,,,,,,,,,,,,,,,,,,,,
PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
OFF PEAK GB,2,4,6,8,10,12,14,16,18,20,22,24,30,36,40,50,60,80,84,100,108,144,150,200
COST,$44.00,$45.50,$47.00,$48.50,$50.00,$51.50,$53.00,$54.50,$56.00,$57.50,$59.00,$60.50,$65.00,$69.50,$72.50,$80.00,$87.50,$102.50,$105.50,$117.50,$123.50,$150.50,$155.00,$192.50
,,,,,,,,,,,,,,,,,,,,,,,,
PEAK GB,1,2,3,4,5,6,7,8,9,10,11,12,15,18,20,25,30,40,42,50,54,72,75,100
OFF PEAK GB,4,8,12,16,20,24,28,32,36,40,44,48,60,72,80,100,120,160,168,200,216,288,300,400
COST,$44.50,$46.50,$48.50,$50.50,$52.50,$54.50,$56.50,$58.50,$60.50,$62.50,$64.50,$66.50,$72.50,$78.50,$82.50,$92.50,$102.50,$122.50,$126.50,$142.50,$150.50,$186.50,$192.50,$242.50

Re: Possible New Concept ADSL Plans

Posted: Wed Oct 01, 2008 3:29 pm
by Col
As I commented on your blog I think that this concept is very interesting and might have some potential. However, I am not sure how effective these plans will be. The 256 plan and the ADSL2+ plans will probably be the best ones in that they will be what they are designed to be - plans for the low user. A person can download around 3-4GB a month (a mixture of peak and off-peak) and come out even or (just) better off compared to the existing plans. I think that the other ADSL1 plans might miss their target market though due to the existing entry-level plans at the same price already satisfying most people with the included quota.

I also think that these plans might draw in a few big downloaders who will milk the off-peak period and barely use the peak period. This is I guess both good (as you get more customers) and bad (because those customers have a higher chance of being inconsiderate midnight schedulers).

Re: Possible New Concept ADSL Plans

Posted: Wed Oct 01, 2008 5:15 pm
by Edwin
I plotted my usage since January 2007 and compared my spent based on different INCPHONE plans from the same period. I have a highly fluctuating usage pattern from very low usage (Off Peak 1GB, Peak 2GB), to going over my included plan allowance (Off Peak 56GB, Peak 36GB). The only times the old style plans are cheaper is when I'm very close to my download allowance but don't go over it. The new style plan would be cheaper any other time (18 out of 21 months).

So I would definitely use the new style plans.

Maybe it would be an idea to include 1GB in both Peak and Off Peak periods to be more attractive for those people who consider the low end plans from Bigpond, Optus, etc. It would cost Exetel virtually nothing extra ($1.25) or could be offset by slightly increasing the plan price.

Re: Possible New Concept ADSL Plans

Posted: Wed Oct 01, 2008 8:32 pm
by Country Bumkin
A few thoughts on this plan...

ForumAdmin wrote..
We have been considering a new type of ADSL plan that has no included download but the customer simply pays for what he/she uses each month.
I think this is a misleading description because of the 'part thereof' pricing system nothing can be achieved without paying for 1GB of data and probably 2Gb (1 Peak and 1 Off Peak), While I concede the cost difference is not much, for a low end user this would not meet their expectations of the description 'pay for what you use'. I suggest charge by the Mb or include the 2Gb as standard.


Other replies have highlighted the value anomalies of this plan compared to existing plans, to me these anomalies sound like a prelude to significant price increases in existing plans. My suggestion is that any price review maintain comparative value between the present 'included data' style plans and a consumption charge based plan. This would allow users to offset a price increase against their variable consumption over a year. (as indicated by the previous post by Edwin.)

Regards C Bumkin

Re: Possible New Concept ADSL Plans

Posted: Sat Oct 04, 2008 4:46 pm
by Country Bumkin
To be interesting these plans obviously need some better pricing, here are my suggestions for revised ADSL1 costs.

Service charge - includes 1Gb peak and 1Gb off peak

256K - $27.50

512k - $32.50

1500k - $39.50

8192k - $59.50

Extra Data Charges - $1/Gb Peak, $0.25/Gb Off peak - Data charges between $20 and $40/month discounted by 10%, charges over $40/month discounted by 25%

Only 1 email address included, nothing else is 'free'. (more email addresses, SMS messages, web space are extra cost)

PS - At the last Telstra port cost I heard there can't be much profit in the TELH plan!

Regards C Bumkin

Re: Possible New Concept ADSL Plans

Posted: Sat Oct 04, 2008 5:40 pm
by hornet48
Country Bumkin wrote:To be interesting these plans obviously need some better pricing
I was speaking to my sister just today about moving to Exetel from Telstra.

She has an account with only 400 mb/month before extra charges.

She says her friends send her "brag (grandchildren) pictures and she constantly exceeds her limit.

When I told her Exetel only charges for downloads (not uploads) she became interested.

The "excess" costs were also very attractive to her.

But, she still wanted to think about it. Why?

Because:

"I get some free sms on my mobile with Telstra"

"Its nice to only have one (1) bill to pay each month"

I pointed out that she's using voip regularly - (I set her up with an ATA last year)......... and pays that automatically through her credit card.

It seems to me that she has been led to believe that if all her comms (telephone, mobile and broadband) are with one supplier, there are cost savings so substantial that nothing else could compete.

I think she will only change:

- when costs get the better of her or

- when I can get her data and demonstrate the benefits to her.

The above concept should make those explanations easier.

H.