news National broadband provider TPG has launched a new, $69.99 ‘Unlimited’ ADSL2+ plan in response to a Federal Court ruling last week its previous $29.99 ‘Unlimited’ plan was misleading as it didn’t obviously disclose the additional $30 of required line rental costs.
The case was filed by the Australian Competition and Consumer Commission (ACCC) in December last year, with the regulator claiming TPG’s $29.95 ‘Unlimited’ ADSL2+ plan actually cost a great deal more. Last week, according to the Herald Sun, Justice Bernard Murphy found advertisements for the plan misleading, but had not yet fixed on a penalty for the issue.
However, in a post on broadband forum yesterday, TPG revealed it would take immediate action, changing the way it labels its Unlimited broadband plan publicly.
“TPG has recently introduced our most amazing ADSL2+ bundle,” company representative Joseph D wrote. The plan contains most of the elements of the previous $29.99 plan — an unlimited quota, home phone line rental, unlimited local and ‘standard’ national calls. It comes with a Netcomm W-Fi router and is also available over a 24 month contract for new customers only. However, the calling option can be removed, which brings the price down by $10 per month, for a total cost of $59.99. Setup fees are $79.95.
One customer asked why existing TPG customers wouldn’t be able to access the plan, and was told by another TPG representative that it would take 10 days — without any home phone or broadband connected — for their landline connection to be moved across.
“That’s unfortunately unavoidable due to the changes and physical movement that are about to take place when you subscribe with this service,” the TPG spokesperson said. It is believed the time gap occurs because TPG prefers customers using its Unlimited plans to be using the company’s own ADSL infrastructure in telephone exchanges. The company offers a range of less desirable plans for those who are using Telstra’s ADSL infrastructure via a wholesale arrangement.
opinion/analysis
Well nobody can accuse TPG of being a complicated company. When it was ordered to, the company merely re-badged its previous $29.99 ‘Unlimited’ plan into a new $69.99 plan and modified it slightly to suit its new existence. It’s all so predictable. The company gets sued. It resists. Then it complies with pretty much the letter of the law — but no more.
One does wonder whether this will have any impact on TPG’s market share. The company is known as a discount carrier, but its advertisements will have a much lower impact on consumers now that they won’t feature the $29.99 for ‘Unlimited’ deal that has gotten TPG so far.
It’s interesting to note that that other major low-cost carrier, Dodo, currently displays its own bundled prices very clearly and carefully on its web site, no doubt being a little bit cautious in the face of obvious ACCC interest in the area. It too has its $29.95 ‘Unlimited’ plan price; but next to that is the ‘Bundle’ price. I’m sure there will be a bit of thought going on this week over at Dodo as the company thinks through what, if any, implications the TPG judgement will have for its own advertising.
Update: We’ve received the following statement from TPG:
- New $69.99 deal was released 3 November,1 day before court ruling
- This 69.99 plan includes a WiFi Modem, Unlimited Local Calls, National Calls and 100 International Minutes together with the Unlimited and line rental
- Customers can still purchase the old $59.99 bundle (29.99 +30) on a 6 or 18 months contract- we have not taken this deal away- If you look at our plan pricing page we have always allowed customers to choose, they decide on the different Access, and Call options www.tpg.com.au/superchat. With the latest consumer deal we added a deal representing heaps more value for new customers to choose it they want.
Other facts: We can offer the Local and National voice because we have one of the largest voice networks in the country, we are in 65 of the 66 Call Collection Areas. The new 69.99 [plan] is a 24 month contract.
Image credit: TPG
I’m unsure where TPG actually says that the post on whingepool, about the new SuperChat, was a response to anything at all.
“TPG revealed it would take immediate action, changing the way it labels its Unlimited broadband plan publicly.” <- Renai's comments
http://forums.whirlpool.net.au/forum-replies.cfm?t=1808753#r1 has NO reference to a response you claim is there.
The SuperChat is an improvement to the previous offer (which is still freely available).
Even yesterday (3 days after the previous story broke) the Media and PT saturation still freely displays the $29.99 unlimited bundle all over town.
SuperChat was infact soft-launched last week and released on 02/11/11 (Check the printable forms if in doubt – http://www.tpg.com.au/forms/ADSL2+%20with%20TPG%20Home%20Phone%20Rego%20Form.pdf )
Again (I believe), we are looking at different ads to the one which was the centre point to the ACCC case.
But what would i know?
D
hey MitH,
if you take a look at the image above, taken from TPG’s home page, it is pretty clear they have precisely replaced the $29.99 ad with the $69.99 one — and it’s almost exactly the same plan. Sure, they didn’t say this, but a new plan released precisely two days after the Federal Court decision? It’s hardly unrelated.
I stand by the story.
Renai
Don’t worry Renai, MitH was outed as a reseller for TPG on Whirlpool multiple times, hence his hatred for the forum.
Play fair with MitH, since anything negative of TPG may affect any income he may receive from them.
As for congestion with TPG, you get what you pay for. TPG has one of the highest complaints on both Whirlpool AND on TPG’s own forums.
I think the lack of detail from the ACCC and TPG’s (so far non-public) reaction on this has said a lot as to what both parties think of the outcome.
Currently each point of the ACCC’s ruling is already clearly displayed in all ads/forms/online and have been for nearly a year. Buses today still have the same huge ‘$29.99 bundle’ ads on them.
No detail of the precise ad in question in this case has been disclosed.
Sticking on-topic with this case and not purposely clouding the debate with “TPG is congested” or stating “TPG has the most complaints on… the TPG forum” doesn’t help clear up a matter that resolves around detail and facts.
I too have tried to source the exact ad in question from the ACCC but they don’t seem forthcoming with replies. I guess it may impact me a bit, but on the larger ‘Tech’ scale it creates issues for all advertisers.
D
I agree the ad has changed but the homephone product is still the exact same bundle, just this hightlighted version includes the new SuperChat option (released 2 days BEFORE decision).
Possibly related but with TPG i guess we’ll never know. Do any other ISPs compare yet?
Of more concern is TPG’s first 24 month contract period. They would have needed to factor in the ‘free wifi modem’ in with the extra costs somewhere.
D
I agree the 24 month contract is an issue. I’m seeing more and more of that these days.
Why do they give you 100 minutes International calling. 99% of people know no one outside Australia.
Better idea would of been to give 100 free minutes to any Mobile phone in Australia.
Also why do I get a free cheapo mode/router, that I dont need it…. Does that mean I get it $10/month cheaper?
Sounds like a junk plan to me.
“Why do they give you 100 minutes International calling. 99% of people know no one outside Australia.
Better idea would of been to give 100 free minutes to any Mobile phone in Australia.”
Jason, i think this is the idea. You offer something that the majority of people wont use (eg wont cost TPG anything) but on paper looks like better value for money which results in more sales.
If you offer 100 minutes of mobile calls most people will use it, which in turn will cost TPG (either directly in the call costs or from the lost profit they would have earned when people made mobile calls anyway).
I dont necessarily agree, but it is smart advertising.
Mobile call termination in Australia is about 9c /minute.
Termination costs to many other countries (even to mobiles) are a lot cheaper that.
“Why do they give you 100 minutes International calling. 99% of people know no one outside Australia.”
Because they get cheap international traffic courtesy of their PIPE Networks acquisition :)
Pfft TPG such a lousy ISP glad I left em
ACCC took TPG to court for charging a hidden $30 on top of the $29.99 for an ‘Unlimited’ plan.
So TPG turn around and release the same plan at $40 more than previously?
I suppose the extra $10 on the plan is to cover their legal costs. :)
I think the $10 is a new feature. You can remove it and pay 60 dollars. But like, I wouldn’t read the article or anything.
Yep, you can still buy the old plan. All they’ve done is take the plan off the home page, and launch a new addon to the old plan.
I think this is the way TPG should have advertised from day one.
the whole radio announcements saying ‘UNLIMITED ADSL2 FOR 29.99 A MONTH” thats just bullcrap its not for 29.99 a month at all.
im happy the regulatory body went down on them.
plus TPG is hell congested guys so i wouldnt bother with em.
I’m a TPG customer, have been for over a year now – I have had almost no problems with their network outside of a few small routing glitches that were always fixed in reasonable time.
Some TPG customers are certainly on exchanges that are the epitome of congestion, but I think it is unfair to make such a blanket statement as ‘tpg is congested’
I just grabbed something internationally, as a example;
100%[=====================================> ] 14,600,183 846K/s in 29s
I’ve been on TPG unlimited for 2 years now, friggin love it….
I’m not sure what I average in downloads per month, but that’s the whole point, I don’t even have to worry about it, if I wanna download 100 GB of crap in a few days I can without concern :-)
Got a 3 TB NAS chock full of my favourite HD tv shows and movies ;-)
need to buy another one!
As for the false advertising – I don’t see the big deal, you gotta pay line rental to get ADSL anyway (unless you go on a naked plan)… so given that, $29.95 for the unlimited ADSL is about right :-)
24 month contract an ‘issue’ ?
Maybe it’s too long for you, but the beauty of the broadband market is that you have freedom of choice :-)
It’s not strange to have such divergence given how big TPG’s customer base is. I’ve heard of plenty of horror stories, but I know someone else who raves about how good TPG unlimited is.
Personally, if I lived at an exchange that didn’t cop too much flack on the forums, and I had a nice short, quality copper line – not wanting to deal with their support, something I haven’t heard too much support for – I’d possibly take the punt with a 6-month contract.
Then again iiNet works so well, has great support and offers plenty of GB’s. Really the moral of the ADSL story in the vast majority of cases is stick with what works, and if it doesn’t work for whatever reason: price, quality etc. Churn until it does.
If they had a non naked offnet unlimited plan would you still not like them to say 29.99 a month??
Do you think they should say 29.99 a month, and whatever Telstra extorts out of you for the home line??
since when do ISP’s have to include the line rental in their pricing?
that has never been the case before… couldnt every ISP be pulled up on this?
I mean if this is the case every isp is misquoting their real price and needs to put $30 line rental on every product as it is essential.
The line rental has to be with TPG to access this deal.
Mind you, advertised Telstra offers usually requires at least Telstra fixed line as well (and often more than just the fixed line too !!)
The ACCC must be one of the few who have seen the $29.99 without the next line indicating that a $30 phone service has to be bundled.
You do realize that $69.95 is $10 dearer then $29.95+$30?
We have to thank the ACCC for another win for the consumer.
hey everyone, FYI I’ve updated this article with a statement from TPG.
After getting continuously ripped off By Telstra and Optus I was told about TPG,in my opinion it’s the best move I’ve made by Moving across to TPG.My contract is almost over and I will most Definately Renew,I personally have not had a major Problem compared to what I was having with other Carriers and if I did have a Problem (Very minor),The support was Fantastic.As for the Misleading info TPG had regarding the $29.99,it was no big deal as they all mislead you in one way or another.Its like having to pick the Best Devil,Once again my opinion only But TPG is the Best Devil by a mile Especially compared to Telstra and Optus.
It’s amazing how some people Make such a big deal out of Something very minor,Kleenex Tissue’s must be making a Fortune at all this Sooking!!!!!
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