Telstra ADSL2+: full pricing details

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Dan Warne09 November 2006, 6:00 PM

Telstra launched ADSL2+ broadband services early this morning, liberating customers from the 1.5Mbit/s hell they've been enduring since the late-90s. We have all the juicy details on pricing, speed and coverage.


Four faces of Sol Trujillo: The big man himself couldn't be at the launch of BigPond ADSL2+, but he appeared by video hookup from L.A.Four faces of Sol Trujillo: The big man himself couldn't be at the launch of BigPond ADSL2+, but he appeared by video hookup from L.A.

 

Telstra will today launch ADSL2+ broadband with coverage of 2,400 exchanges and 91 per cent of the population.

However, in an odd twist, it will only offer the full 20Mbit/s speed of ADSL2+ in the 360 exchanges where competitors already have ADSL2+ infrastructure installed.

In all other areas, customers will be limited to 8Mbit/s -- still a massive improvement over the maximum 1.5Mbit/s offered by Telstra previously, but a clear indication of Telstra CEO Sol Trujillo's steely resolve to block competitors from gaining access to any new high speed broadband network Telstra builds.

Telstra will finally offer plans to suit the needs of heavy internet users who aren't interested in BigPond's 'walled garden' unmetered content, with download allowances of up to 60GB on offer.

But pricing has shot up compared to BigPond's existing ADSL1 plans. There are none of Telstra's infamous $29.95 plans to be seen -- pricing starts at $59.95 for a plan with 600MB and tops out at $149.95 for 60GB. However, Telstra is continuing its "half price for the first twelve months of a two year contract" offer, meaning customers will be able to get the $59.95 plan for $29.97 for 12 months and $59.95 for the next 12 months.

Telstra told APC it will also offer new 1.5Mbit/s plans that are "up to $30 cheaper" than existing ones, though it didn't provide details of exact pricing.

A news release listed the following plans "for customers with Telstra full-service phone" but did not mention how much they would cost if customers preselected to a different phone carrier.

  • $59.95 - either 8 or 20Mbit/s, 600MB download limit ($150/GB excess usage charge after that)
  • $89.95 - either 8 or 20Mbit/s, 12GB "shaped" plan (speed throttled to 64Kbit/s after 12GB)
  • $119.95 - either 8 or 20Mbit/s, 25GB download limit ($150/GB excess usage charge after that)
  • $149.95 - either 8 or 20Mbit/s, 60GB download limit ($150/GB excess usage charge after that)

BigPond provides an online coverage checker which allows you to type in your details to find out if your phone line is capable of getting either 8Mbit/s or 20Mbit/s service.

Telstra BigPond Group Managing Director Justin Milne backhanded the limited high-speed broadband coverage of competitors, saying, "BigPond’s new high-speed plans are not just for a few prime inner city exchanges. We’ve upgraded our ADSL-enabled exchanges nationally, to offer more speed in more places, so that customers in cities, regional centres and country towns can reap the productivity, entertainment, education, and health care benefits of high-speed broadband.”

What is not clear from the news release is what level of services will be available to other ISPs on a wholesale basis. It's likely that Telstra will only offer 8Mbit/s services to all other ISPs because, it may argue, if a competitor already has ADSL2+ in the same exchange, why should it be given access to Telstra's ports?

On the upside, Telstra's approach does actually mean that other ISPs will be encouraged to continue building infrastructure. However, it's also obvious that if Telstra gets tacit approval from the competition regulator to switch on ADSL2+ in every exchange without having to offer it to competitors, it will.

How BigPond's pricing compares

There's no question that BigPond's pricing for ADSL2+ is high compared to other ISPs. At the low-end, $59.95 buys only 600MB of usage on BigPond, but it buys at least 7GB on Optus Direct, at least 10GB on iiNet, 20GB on Internode and 30GB on TPG.

It's worth noting that iiNet forces customers to switch their phone line over too (a whopping $34.95) or take a VoIP service ($9.95) on top of the ADSL2+ plan fee if they want to enjoy full ADSL2+ speeds. In comparison Telstra's line rental fee is $19.95 and Optus Direct's line rental is $19.00.

Ironically, since Telstra will only offer ADSL2+ in exchanges where these competitors already are, it's likely that people who do their research and opt for BigPond will probably be the ones who can only get 8Mbit/s.

Here's some of the key competitors' pricing, sourced from Broadband Choice.

Optus Direct ADSL2+
100 MB peak, 200 MB off peak, phone preselected to Optus $19.95
300 MB peak, 600 MB off peak, phone preselected to Optus $29.95
2 GB peak, 4 GB off peak, phone preselected to Optus $39.95
7 GB peak, 14 GB off peak, phone preselected to Optus $49.95
20 GB peak, 40 GB off peak, phone preselected to Optus $69.95

Internode home ADSL2+
20GB $59.95
40GB $79.95
80GB $119.95

iiNet ADSL2+
500MB peak 1GB off peak, with phone preselected to iiNet, $29.95
2GB peak 4GB off peak, with phone preselected to iiNet, $39.95
7GB peak 14GB off peak, with phone preselected to iiNet, $49.95
10GB peak, 20GB off peak, with phone preselected to iiNet, $59.95
20GB peak, 40GB off peak, with phone preselected to iiNet, $69.95
40GB peak, 40GB off peak, with phone preselected to iiNet, $99.95
60GB peak, 60GB off peak, with phone preselected to iiNet, $129.95

TPG ADSL2+
600MB peak $29.99 (excess usage charged but capped at $59.99)
3 GB $39.99
15 GB including VoIP service $49.99
18 GB $49.99
25 GB including VoIP service $59.99
30 GB $59.99
50 GB $89.99
100 GB $129.99

Different DSLAMs to other ISPs

Telstra is using Alcatel ADSL2+ DSLAMs, which are different to the Ericsson ones used by iiNet, Internode and some other ADSL2+ providers.

Firmware for ADSL2+ modems sold in Australia has largely been tuned for use with Ericsson DSLAMs due to their prevalence.

Modem testing carried out by APC in June 2006 showed that tweaking small DSLAM parameters could have huge effects on real-life throughput of modems, and that there was real variance in the throughput speeds between different brands and models of modem.

The upshot is that modems that perform well on Internode or iiNet may not necessarily perform well on Telstra BigPond's Alcatel DSLAMs.

Though other modem models may work just as well, if you want to connect to BigPond ADSL2+, your best bet would be to use the modem supplied by Telstra.


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David Flynn:

Any move by Telstra to unshackle its ADSL speeds for customers and access for resellers/competitors is a welcome one.

Of course, they've done it on their own terms and with their traditional traits of insanely high pricing.

We'd have been delighted if the pricing was a 'no brainer' for users, and if resellers were put on a truly level playing field with the latest technology we'd have switched on The Weather Channel to see if hell had frozen over. But almost anything to spur adoption of broadband is A Good Thing.

What I find interesting is the timing. It's not just that, as others have said, this all took place very quickly, indicating that (as long expected) the capability was there all along.

More curious, especially for the market-savvy Trujillo (and I mean the stock market, not marketing per se) is that this announcement was made the first day AFTER the retail offer for T3 shares closed, but with a week to go until the closure of bids from institutional investors. I'd love to learn the thinking behind that one...



29 February 2008, 8:28 PM (9 months ago)report abuse Send to a friend reply

raindog:

Telstra never did want Ma & Pa shareholders, the Govt may have thought it was a good idea at the time, but Telstra management never did. And it cant be too long before most T2 shareholders cut their losses so it's in Sol's interest to whip up the interest with the institutional buyers.

Boys clubs always like to deal with other boys clubs, they are much likely to have their bizzare ideas taken seriously.

Maybe its me, but every new photo you guys prints has Sol looking a little more like Super-Mario, let the games continue.

29 February 2008, 8:34 PM (9 months ago)report abuse Send to a friend reply

Anonymous One:

Don't trust anymore with a moustache

29 February 2008, 8:34 PM (9 months ago)report abuse Send to a friend reply

gedrod:

I have just moved back to Oz from the UK where I had broadband with BT. About 4 years ago we had 1.5Mb/s and then in early 2004 they upped the speed to 4Mb/s for no extra cost, they just sent us an email - but in fact the speed had been increased about a month before, so they weren't exactly shouting about it. In early 2005 they increased the speed to 8Mb/s without any fanfare or even informing their customers, I only found out by doing a speed test!

All this for GBP23/month (AUD55) and unmetered.

Why is the market here in Oz so different and why is Telstra so bloody precious about this. We are behind the rest of the world and we need to catch up. Pity the Australian people have lost control of our national telco.
Gedrod

29 February 2008, 8:28 PM (9 months ago)report abuse Send to a friend reply

tin:

Pricing is dumb.
Paying the same for 8mbps max and 20mbps max is also dumb considering the cap is based on avoiding wholesaling ADSL2, not a technical limit.

Well done to Telstra for once again proving they don't understand their market.

29 February 2008, 8:28 PM (9 months ago)report abuse Send to a friend reply

Ian:

How long ago did the drop Fibre To The Node(FTTN) - now they have done a major upgrade in a 3 month timeframe to rollout ADSL2+ DSLAMS on most metro exchanges? This definatley needs to be asked -"When did their rollout start" - was FTTN a scam to hide their activity from the other ISP's.

Surely they would scream unfair if another company hid their activities the way they must have done to launch an ADSL2+ network that up until August 06 was not on the radar for Telstra, as FTTN was their flagship. Ask the ACCC why Telstra walked out on talks - they are still unaware.

There was an interview by one of the top ISP's stating that Telstra FTTn was just a furbie - now I do belive it was. Is this a great Aussie company? not if it deceives us all, no way.

29 February 2008, 8:28 PM (9 months ago)report abuse Send to a friend reply

tin:

now they have done a major upgrade in a 3 month timeframe to rollout ADSL2+ DSLAMS on most metro exchanges?

Not quite... Apparently most ADSL enabled exchanges have ADSL2 capable DSLAMs anyway. Telstra just havent been using them for that.

29 February 2008, 8:34 PM (9 months ago)report abuse Send to a friend reply

raindog:

And there was Sol saying he had no time for this old tech, less for more should be the new Bigpond slogan.

(sarcasm on)
I could replace my DSL connection with Next-G for under $12K/per month or I could dream of Bigpond ADSL2 coming to my exchange along with it's piddling allowance and curious price structure. Almost makes me want to tackle that bug ridden labrynth that is the Bigpond website, makes me want to pine for hours on hold waiting to actually speak to a bigpond droid knowing I will have to tell the same tale to other droids ad-nauseum till I hang up in despair.
(/sarcasm off)

If Telstra plans to retail this product only at exhanges where competitors are already offering ADSL2 at better prices, then how in blue blazes do they expect to sell it? Must make those shareholders feel real confident.




29 February 2008, 8:29 PM (9 months ago)report abuse Send to a friend reply

Raid:

this is not ADSL+2

I think telstra doesnt know what ADSL+2 means or its taking advantage of the monopole of the communication here in asutralia, i think everywhere els when you talk about ADSL+2 you are talking about unlimited useage of downloads and uploads but here in australia its diffrent but anyway we dont have any other alternatives so we're gonna be stuck with this special ADSL+2.
I FEEL SORRY FOR EVERYONE HERE IN AUSTRALIA.

29 February 2008, 8:33 PM (9 months ago)report abuse Send to a friend reply

playground (New user):

what a load of crap.... TPG offer 150Gb for 69.95 (adsl2+) and have done so for long its not funny

21 November 2008, 4:55 PM (1 week ago)report abuse Send to a friend reply

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