Why I prefer user-pays pricing

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Posts: 8
Joined: Thu May 06, 2010 12:00 am
Location: Sydney

Why I prefer user-pays pricing

Post by pecifieote » Tue May 11, 2010 12:28 am

Dear Exetel my beloved and most preferred ISP,

I made a comment that was suddenly lost to a thread closure so I wish to raise an issue that is close to my heart.

Some of the recent controversy in discussions about Exetel reflect unease at suggestions of measures that negatively impact all users when the cause of the problem is a minority of users who are not paying enough to cover their use.

My comment referred to customers who are creating losses for Exetel. I believe it is appropriate to lower the data quota and/or increase the price for these users. In the past I have received email from exetel informing me that my price must go up because my old plan is no longer economically viable, and kindly offering waiving of the exit fee if I wished to change ISP. I have always decided to stay because the value offered by Exetel is still good after some price increase. Why not apply a similar tactic upon the loss-making customers?

If there is a situation where some customers are effectively subsidising other customers, it should only be allowed to exist in a situation that promotes equity - for example city users subsidising the costs of rural users. It should not be a situation where heavy users are being subsidised by light users. If somebody downloads huge amounts they should pay more. My plan charges money per gigabyte used in excess of the set quota. If quotas and fees are set appropriately, no customer should be able to cause losses to Exetel. This is good for Exetel and good for users as we are confident that we are paying a price that reflects our usage and not subsidising heavy downloaders (who do not deserve such financial assistance).

Thank you for your consideration

Posts: 325
Joined: Thu Apr 24, 2008 4:44 pm
Location: Brisbane, Qld

Re: Why I prefer user-pays pricing

Post by Ravenous » Tue May 11, 2010 8:13 am

I think you will be pleased to see the direction Exetel is heading with its fibre pricing. Access fee and then pay for the data you use. 100% fair.

I hope they will stay true to this path!

Exetel Staff
Posts: 3663
Joined: Sun Jan 04, 2004 2:31 pm
Location: Sydney

Re: Why I prefer user-pays pricing

Post by ForumAdmin » Wed May 12, 2010 10:20 am

pecifieote wrote:
If there is a situation where some customers are effectively subsidising other customers,

Thank you for your consideration
The answer is - yes.

85% of Exetel's customers subsidise 15% of Exetel's customers.

We are in the long process of correcting that situation.

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