Catch issues early, fix them fast – Free trial
[ad] With GFI Cloud you can easily manage and secure your remote workforce – wherever they are, from wherever you are! The simple IT management platform includes patch management, antivirus, web protection, monitoring and remote control. Get the benefit of endpoint protection with the ease of central management. Start a free trial now.
Great articles on other sites
- Sydney Opal card travel history can be accessed by police
- NBN analysis 'like foxes reviewing the hen house': Clare
- Call made to end inflight phone ban
- Australian government undoing profit shifting clamp down: Labor
- National security law reforms
- Victorian Government calls for contributions to shape Victoria’s digital economy
- Will IBM pip Azure at the Aussie cloud post?
- Competition watchdog should break up Foxtel monopoly: Ludlam
- Susan Sly gives up on the CIO game
- Vic Labor puts its support behind mobile police
News, Telecommunications - Written by Renai LeMay on Tuesday, September 18, 2012 9:50 - 77 Comments
TPG reveals $69.99 unlimited NBN plan
news National provider broadband provider TPG has revealed it is planning to offer at least one plan on the National Broadband Network’s fibre infrastructure featuring the same unlimited downloads it offers on ADSL networks, with speeds of 12Mbps and a monthly charge of $69.99 including a home telephone line.
The company is well-known for its unlimited broadband packages on its ADSL network, which typically cost around the $60 mark and feature unlimited monthly data quota and a bundled telephone line, but until now TPG has remained aloof from the race to sign up customers in the NBN’s early rollout zones.
However, in its annual financial results presentation pack this morning, TPG included a slide that featured a 12 month NBN plan at the entry-level 12Mbps speed with “unlimited data usage” for $69.99 per month, plus unlimited local and “standard national calls” to landlines and unlimited international calls to a number of countries globally. The company did not reveal whether it was planning to offer unlimited quota on higher-speed plans — such as 25Mbps, 50Mbps or 100Mbps — which would allow customers to download much higher levels of quota per month.
The news comes several months after TPG told iTNews in March that it was considering an unlimited quota plan. At the time, the publication reported: “TPG general manager of marketing and sales Craig Levy … said the company was “looking at all our options” for NBN pricing, including an unlimited quota plan, and was planning to compete heavily on the network.”
Along with Dodo and Vodafone, TPG is one of the few major Australian broadband providers not to have released any pricing details yet for National Broadband Network plans. In fact, it is unclear to what extent the company has actually engaged with NBN Co’s ‘on-boarding’ process, whereby ISPs work out how their systems will interconnect with the National Broadband Network.
It has been unclear whether TPG could maintain similar pricing levels on an NBN unlimited plan to its existing ADSL2+ unlimited plans. The maximum a user could theoretically download over a month through an unlimited ADSL2+ plan is around 6.3TB. However, with the dramatically faster speeds available under the NBN — up to 100Mbps, as opposed to up to 24Mbps under ADSL2+, that total monthly download limit could be quadrupled. That extra quota cost could potentially drive up monthly plan costs on unlimited plans. The maximum quota other ISPs are currently offering on their NBN plans is between one terabyte and two terabytes.
On a 12Mbps NBN plan, the maximum quota a user could download per month would be close to 3.1 Terabytes. TPG has described the unlimited quota plan as a “standard” plan.
If TPG does proceed with its unlimited pricing package, the company’s offering will be radically different from those NBN fibre pricing plans already in the market, with most other providers focusing on higher speed plans with a moderate amount of data quota. For $70 a month, for example, second-tier ISP Exetel offers a 300GB plan at 100Mbps speeds. This plan undercuts popular rivals such as iiNet and Internode.
It looks like TPG is finally convinced that the NBN is getting some scale and has started to show its hand on its NBN pricing. I guess we can’t be surprised that the company has tried its hardest to squeeze its extremely popular “unlimited” model into a fibre framework, but will the plans be popular? And are they actually good?
In a word, no.
Frankly, if you’re going to sign up to the NBN, as virtually every Australian will, and you’re the sort of person who downloads a lot of stuff from the Internet (hence, being interested in an unlimited quota plan), you are going to want to take advantage of the NBN’s faster speeds. To go from ADSL2+, which only offers speeds up to 24Mbps, and most people get far less, to fibre at 12Mbps is a bit of a joke. 12Mbps is not the NBN tier which most Australians are going to sign up for, and in fact NBN Co already has significant uptake figures showing that a higher than expected proportion of NBN customers sign up for the higher value plans — 50Mbps and 100Mbps.
But if TPG does offer unlimited quota value at these higher speed plans, it is going to have to push its charges much higher as well, just to keep up with customers’ downloads. At 25Mbps, for example, you can theoretically download about 6.7 terabytes of data per month, so it’s not unreasonable to expect that TPG might charge something similar to its current unlimited plans for such a service — perhaps $80 a month?
But as you get higher speeds, the amount of data you can such down a month increased rapidly. At 50Mbps, you could download a staggering 13.3 terabytes a month, and double that at 100Mbps. Consequently, TPG will not, in my estimation, be able to offer these plans at anywhere south of $100 — and the expensive, post-$100 customer has never been where TPG has aimed at.
I expect that TPG’s most popular NBN plan, if it chooses to offer one, will be a ~ $80 unlimited plan with 25Mbps speeds. That’s where I would say most TPG-type customers would be OK signing up for. Hell, maybe TPG can do some fiddling with its telephone costs and cut that down a bit to $70. Then it surely would have a winner on its hands. But I’m not sure how financially possible that is.
Image credit: TPG
Blog, Enterprise IT - Jul 5, 2014 13:53 - 0 Comments
More In Enterprise IT
- Qld’s Grant joins analyst firm IBRS
- Westpac dumps desk phones for Samsung Android mobiles
- Ministers’ cloud approval lasted just a year
- WA Govt can’t fund school IT upgrades
- Turnbull outlines Govt ICT vision
Blog, Telecommunications - Jul 5, 2014 12:12 - 0 Comments
More In Telecommunications
- Telstra gets $150m for NBN FTTN trial
- How Australia got online 25 years ago
- Palmer pushes for minimalist NBN policy
- NBN debate heats up at IEEE conference
- Spirit deploys 200Mbps FTTB to Southbank
Analysis, Industry, Internet - Jun 23, 2014 10:33 - 0 Comments
More In Industry
- ABC tech reporter founds micro-transactions startup
- Australia’s got ICT talent: So how do we make the most of it?
- ‘Thriving’ Aussie tech incubator scene a ‘mirage’
- Corporate highs: The US P-TECH model for schools in Australia?
- Facebook wants to hide its Australian earnings
Blog, Digital Rights - Jun 30, 2014 22:24 - 0 Comments
More In Digital Rights
- “Rational debate” needed around surveillance
- Web blocking technically impossible: iiNet reminds Govt of undisputed fact
- We like e-readers – but library users are still borrowing books
- Coalition, Labor support new surveillance laws
- Anti-piracy laws will increase piracy, says Budde