Internode bites back at low NBN uptake predictions

Internode bites back at low NBN uptake predictions

The South Australian ISP saw estimates of low uptake as unduly pessimistic

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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