news National broadband provider iiNet this morning released its highly anticipated National Broadband Network pricing, undercutting plans released by arch-rival Internode by as much as half in some areas.
iiNet’s plans start at $49.95 per month for a plan with 20GB of on-peak and 20GB of off-peak (2AM-8AM) data and entry level speeds of 12Mbps down and 1Mbps up. When you include a $9.95 monthly charge for access to the company’s internet telephony line, iiNet’s entry-level plans are not too dissimilar from Internode’s pricing released last month.
However, as the pricing plans scale up, a radical difference between the pricing plans of the two companies becomes apparent, with Internode’s highest plan (coming with a terabyte of data and 100Mbps speeds) costing $189.95 per month and iiNet charging just $99.95 for the same (with 500GB of on-peak and 500GB of off-peak data).
Across the board, regarding the plans in between the two extremes, iiNet’s plans are generally drastically cheaper than Internode’s plans and are more in line with plans released by smaller broadband competitor Exetel in late July.
The plan release does much to verify comments by iiNet chief executive Michael Malone in mid-August that the cost of connecting customers to the NBN was similar to that of existing ADSL broadband services. The statement puts iiNet at odds with Internode, which has consistently criticised NBN Co’s pricing scheme, arguing it would not allow smaller ISPs to compete nationally.
After what appeared to be lengthy talks on the matter, NBN Co sought to address the concerns in mid-August by offering ISPs a rebate on the CVC links which provision traffic to end user customers’ premises on the NBN. ISPs won’t have to pay the CVC charges on the first 150Mbps per month served through the CVC connection until there are 30,000 premises passed in an area connected to one of its planned 121 point of interconnect.
At the time, Internode MD Simon Hackett welcomed the rebate, but noted Internode’s NBN pricing would not change as a result of the deal.
Today, Malone said iiNet had “long recognised” the power of the NBN’s planned ubiquituous, open access network to transform its business. “The NBN allows us to deliver what we have always stood for: faster, more reliable broadband for less,” he said in a statement.
“iiNet is particularly excited that the roll-out of NBN is focused on regions traditionally burdened with slower speeds and higher prices. Without the need for a fixed phone line, the customers on our most popular ADSL1 plan can move to NBN speeds and enjoy ten times the quota for the same price they’re paying now. With standard off-net access charges offered by NBNCo 40 per cent less than currently available in regional areas, we can pass substantial savings on to our customers.”
iiNet also released business-focused plans for the NBN today, which offer customers very similar tiered pricing options to the consumer-focused plans detailed above; but with slightly higher prices ranging up to $129.95 per month and a number of business-focused features such as specialised support and a static IP address.
All of iiNet’s plans will see customers’ speeds on the NBN shaped to 256kbps down and 256kbps up (512/512 for business customers) once their quotas are exhausted.
Image credit: iiNet, Delimiter