Internode bites back at low NBN uptake predictions
- 08 June, 2010 12:21
- Comments 5
Internode has fought off claims uptake for the National Broadband Network (NBN) will be low.
The South Australian ISP was one of three providers confirmed for the state’s fibre-to-the-premise (FTTP) NBN. It will initially service the pilot network which covers 4000 premises in Midway Point, Smithton and Scottsdale.
Estimates prepared by the Tasmanian Government, as reported in The Australian, predicted just 16 per cent of the state’s premises under the NBN’s FTTP would be connected by 2023. Tasmania had wanted a predominantly wireless rollout, according to the report.
Internode product manager, Jim Kellet, thought the figures were “unduly pessimistic”.
“I think we will pass the 16 per cent pickup rate by far in a matter of months and years,” he said. “There has been interest in fibre and the report could have been done on a much higher prediction on pricing than what is out there at the moment.”
The ISP has also unveiled its pricing for its Tasmanian NBN service with fibre-to-the-home (FTTH) NBN plans starting from $29.95 for 15GB. The company claims the deals are cheaper than ADSL plans.
Kellet admitted Internode is making “really thin margins” with low pricing but expected plans will drive interest in NBN.
iiNet is currently offering fibre services from $49.95 10GB while iPrimus prices start at $39 when bundled with a homephone on a contract.
Internode said it was enjoying the ‘honeymoon’ period for NBN wholesale pricing for the next 12 month and will still see a profit from offering cut-priced fibre plans. It will not lock customers into contracts as the ISP anticipates wholesale prices to change after 12 months.
Plans have been released just before full scale installations are due to take place in July. Internode has been preparing its backend systems and training staff to take orders.
“We’re just geared up to take orders now,” Kellet said. “The first batch of keen customers – around 5-10 people - should start getting services installed before the main rollout.”
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Comments
peterh_oz
OK, why compare to iiNet and Primus but not to Exetel, who has also announced plans? Entry level plans on each speed are the same price as Exetel but if you use 1 Gb or more less than your quota you save on Exetel. Larger quota plans may be cheaper on Internode BUT it depends on your upload v download usage:
Exetel’s plans are DOWNLOAD ONLY, Internode’s are download plus upload.
Of course Internode’s include “free downloads” whereas Exetel does not, but if you don’t use those free sites then it doesn’t matter.
umbria
Replacing household phone line rental, phone calls and Internet costs with 25 Mbps fibre for $30 plus $10 of VoIP calls is certainly going to get traction in the market, probably 90 percent in fact. Even if the final fibre pricing doubles to $60, a 25 Mbps service can sustain two rock-solid HD television streams, CD-quality VoIP calls and web surfing simultaneously, and its speed doesn't fade with distance or drop out all the time like wireless. It simply blows every alternative technology out of the water on quality and price. Well done Internode, for stoking the fire with this pilot pricing.
Chris
Honestly im looking forward to see what happens with this. i wouldnt mind it when it comes to adelaide area that im in. Will make games and movies and everything easier.
Mat@BH
@peterh_oz - "Exetel’s plans are DOWNLOAD ONLY, Internode’s are download plus upload.
Of course Internode’s include “free downloads” whereas Exetel does not, but if you don’t use those free sites then it doesn’t matter."
Also Exetel are essentially locking you in to a 12 month contract, whereas Internode will let you cancel at any time without a fee (if cancelled after 1 month).
I am very interested in the NBN, finally something that will be far more affordable and cutting edge, unlike ADSL. Currently I am limited to only Telstra infrastructure, therefore I must have a Telstra phone line. Then there is the fact that I am about 2.5kms from the exchange, therefore my maximum speed on ADSL2 is limited by the signal degradation over the length of the cable. Yet Telstra still believe it is entitled to charge me top dollar for technology that was invented decades ago.
It is great to see a Government actually willing to invest back into the country. I realise that this project is quite controversial, however I am totally behind it as it will finally give me, my family and friends an alternative to Telstra and their old and unreliable infrastructure.
I just hope that the NBN as a whole can get up and running ASAP.
Steven
There'd be no point comparing against Exetel plans as the Exetel plans are likely to change before the trial begins (or soon after) - John Linton tends to change plans more often than underwear.
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