In a historic move, Telecom (NZX: TEL) is taking a second stab at an un-capped data plan with its new $59.95 a month Big Time plan, launching July 7.
Ralph Brayham, Director of Home services for Telecom Retail, says the new plan is aimed at two types of customers: those who want price certainty, and power users who want to be able to download unlimited amounts of data without worrying about punitive charges for blowing their cap.
However, the new Big Time plan comes with a catch: âWe will unashamedly be shaping data,â says Mr Brayham.
That means that during peak internet use times (usually 3pm to 10pm) Telecom will give priority to people on âspeed plansâ (that is, every customer not on a Big Time plan). As a result, Big Time customers could see reduced peformance as Telecom manages its overall network traffic.
Big Time customers will be given a discrete, separate slice of bandwidth. If 10 use it, theyâll each get 10% of the bandwidth. If 100 are using it during a peak time, 1% - which in practical terms would mean slower or âthrottledâ performance.
Back to the future
This is Telecomâs second time around with an all-you-can-eat data plan.
Two years ago, its Go Large plan was taken offline after the Commerce Commission said Telecom had failed to highlight the fine print. Telecom paid Go Large customers $130 to $160 compensation each to head off a Fair Trading Act prosecution.
Go Large was described in advertisements as "unlimited Internet usage at maximum download speeds." This time, Telecom is being completely upfront about data shaping, and its potential to slow Big Time connections.
Customers on Telecom's Total Home package will get Big Time for $10 more than your current plan. Big Time is open to residential customers only.
Catching up with the rest of the world
While Telecom's all-you-can-eat plan will be unique in the New Zealand market, it would no be considered that radical in most locales.
A recent OECD survey on uncapped broadband put New Zealand among four countries in last-equal position. In most OECD countries, ISPs routinely feature only all-you-can-eat data plans. Data limits are almost non-existent.
Go moves to full-speed/full-speed
Separately, Mr Brayham announced that the 200,000 customers on Telecom's Go plan - it's most popular - would be automatically upgraded from full-speed upload/128Kbit/s download speed to full-speed/full-speed in a gradual process beginning in July. The transition is expected to take several weeks.
More local copies of overseas web content
Mr Brayham also said that Telecom had ramped up its local caching efforts, so that files such as viral YouTube videos and big Microsoft and Apple updates will be offered via a local server, speeding service and lowering international data costs.
Telecom won't put any figures on the caching upgrade, but says it has been one of the keys to topping several performance metrics in broadband performance surveys carried out for the Commerce Commision by Epitiro.
Caching should help Big Time customers. A big file - say, Apple's iPhone OS 3.0 update - would only be shaped if they happened to be the first to download it. After that it would be cached.
Faster species of DSL spreads
Mr Brayham said Telecom had now shipped more than 250,000 ADSL2+ modems to customers, but deferred questions about the possible launch of faster VDSL2 plans to Telecom Wholesale - which has previously indicated VDSL2 plans will have a $20 surcharge.
Vodafone and Orcon have complained that VDSL2 should be viewed as just another DSL service under the Telecommunications Act, and should therefore be charged at no premium by Telecom Wholesale. This represents a problematic situation for the Commerce Commission, which has used the potential of "premium services" (without actually naming VDSL2) as one of the justifications for regulating relatively high pricing for access to Telecom's roadside cabinets.
Source: NBR








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