Telstra opts out of own broadband transfer system

Dan Warne
13 December 2006, 1:05 PM


Mega-telco Telstra has announced it will not participate in its own broadband customer transfer process, meaning BigPond customers will not be able to change to other ISPs as easily.


Mega-telco Telstra has decided it will not participate in its own broadband churn process, for customers transferring between ISPs.

The scheme, to be introduced in January, is designed to ease the process of changing ISPs even if the two ISPs use different DSLAMs.

Until now, a customer changing from iiNet ADSL2+ to Internode ADSL2+, for example, had to fully disconnect their DSL and then reapply to be reconnected.

However, BigPond is attempting to stymie competing ISPs from luring customers away: Telstra says it doesn't want to be part of in its own scheme.

Internode Managing Director Simon Hackett said it was an obvious bid by BigPond to lock out 50% of the retail market from easily changing ISPs.

"It is just madness," he said. "Telstra is excluding half the retail market (the half it owns directly) from the process -- how on earth can they defend that decision?"

BigPond spokesman Craig Middleton said, "Each ISP has the option of participating in the DSL/SSS transfer process. In many circumstances, customers can still be transferred from or to an ISP whether or not the ISP participates in the DSL/SSS transfer process. BigPond has simply exercised its right under a process in which participation is voluntary."

Despite the refusal of Telstra to use its own process, the change is good news in general, meaning that from early January, it'll be possible to switch between ADSL2+ ISPs (except BigPond) with bare minimum downtime and with less chance something will go wrong.


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Anonymous:

This company will eventually fail. Telstra just keeps on finding new ways to annoy its customers. Why would I sign up to a company that has increased penalties for moving on?

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

Yeah, telstra doesnt work for its customers they are just after money, after keeping the country throttled for years why would ANYONE go near them in the first place.

I reckon telstra should just burn and die, then world will be a better place :P

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

The fundermental issue here is that the more flexible the system is the more people will join it e.g. changing mobile phone operators generally does not mean changing phone numbers these days.
i left Telstra years ago as they treat small customers as an inconvenience

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

As a BigPond customer considering the change, I see this as the response of a company who is scared of competition and wants to make it as difficult as possible for its customers to make the change. It is an entirely negative tactic and as such, reflects the attitude of its top executives.

This compnay has lost the plot. Negativity will flow thru the whole of their operations until they sit, lonely in the dark, paranoid that someone might pinch their lunch box.

We shouldn't be surprised at this turn of events - it is entirely consistent with a 'loser' mentality.

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

Telstra is more on domination rather than competition and customer service.

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Wayne C:

As a Bigpond customer I am dissapointed to the hear that they have chosen to not opt in on the churn arrangement. Their decision does make Bigpond a less attractive ISP for new broadband accounts knowing that they are less flexible than some others. Considering Bigpond is more expensive and less personal to deal with than the local operators such as Internode and Adam Internet in Adelaide, decisions like this just further make the local ISPs increasingly more attractive for me.

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

Yep - doesn't surprise me. This is from the company that could have turned on ADSL2+ years ago to the benefit of all Australians, but refused to because it put a regulatory dispute ahead of its customers. Telstra will do everything it can to limit competition and continue to rip off their customers

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

but you see no reason why they should't be able to stop international companies from ripping off Telstra shareholders. If other ISPs want ADSL 2 plus network, have them build their own.

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

so telstra doesnt want to help customers leave, well why should they , they are in the business of making money and having customerss, you wanna leave you pay the price.

if someone gets annoyed at the leaving process then they are at the stage of leaving therefore no longer are happy or satisfied with the telco so you think making it quicker will warm them back again?

the amount of people this will affect isnt even worth having a discussion over

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

so telstra doesnt want to help customers leave, well why should they , they are in the business of making money and having customerss, you wanna leave you pay the price.

well many other isps are also in the business of making money and happy to use this feature. and it appears they are earning quite a fair bit of business without needing to require users to 'pay the price' as telstra has indicated they do.

Its definitely possible for telstra to do the same; the insistence on not doing so as pointed out, makes them a poor choice for someone who might wish to chop and change in search of the best deal - altogether likely after experiencing Telstra product and pricing firsthand.

Also making the leaving process easier may not warm the customer to the ISP again, sure! But, annoying customers who want to leave just makes sure you get bad advertising by word of mouth... ("I tried to change provider and got slugged for $X! Dont use them!").

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

The amount of affected customers is growing larger everyday, usually when they recieve their first bill and find out about all the hidden and ridiculous charges.

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Craig:

In reply to So What by anonymouse
"so telstra doesnt want to help customers leave, well why should they , they are in the business of making money and having customerss, you wanna leave you pay the price.

if someone gets annoyed at the leaving process then they are at the stage of leaving therefore no longer are happy or satisfied with the telco so you think making it quicker will warm them back again?"

What a poor view of the world... with this view you never win new customers only make it hard for them to leave. Well this works in reverse, if someone was with ISP "ABC" for example on ADSL2+ and they wanted churn to bigpond they couldn't as stated in the original article they would have to disconnect and reconnect to move over... a big hassle both ways... when you have a badly priced product with appalling customer service you obviously have to nearly handcuff your customers in to stop them leaving in droves when the word gets out just how good some of the competitors offerings really are.



29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Carole E:

Well, that just makes me more sure that Telstra are so unAustralian, that's dirty!

They have a way for people to move from one company to another but they wont join in? And it is a system that THEY created and they dont want to risk their current clients from having an easy way to "jump ship".

Telstra, I am going out of my way to ensure I never ever ever have to deal with you and i'll be sure that every xmas party/lunch/function I go to, i'm going to be telling all my associates about this.

There is NO reason to do this other than stopping people from leaving and you obviously expect a LOT of people to leave or you wouldnt be doing this!!!

Telstra you seriously Suck

Carole (was once a telstra client, never ever again).

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

Think about it? Im No en australien as you see my lenguage dificultis. They wont to give some employment for australians not shift jobs to 3 th world. If you be loyal customers than we may keep jobs here. Or you can choose to move to OPTUS where customer support is oversis, or TPG they employ a little % here. What you will say ??????

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

Or you can choose to churn to a good value Australian owned company with Australian staff.

There are other companies that meet the above criteria and do it for LESS money and with BETTER service.

This is anticompetitive business practice at it's best.

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Derek Nguyen:

that's why they want out, cuz they knows that their plans don't offer values for money. Their plans are so expansive is because the CEO takes multi million $$$ and puts it in their deep pocket, it has to come from somewhere. Telstra is not about looking after their customers, it's about looking after CEOs.....period.

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

angusj:

Well, no doubt it'll slow the exodus of Telstra's customers. However the cost will be increasing customer resentment which will be much more damaging to their reputation over the longer term.

I wonder how long it'll take for Telstra management to realise that gouging doesn't work for ever. Anyhow, I sold my Telstra shares years ago.

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

Hehe, now all they have to do is hike prices and introduce 3GB caps to all plans and they can make all the $$ they like ....

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Charles:

What's sad is that the people reading this all know exactly what Telstra is like, so it is preaching to the choir. The problem is that a huge majority of the population doesn't know or care, and they are Telstra's target market - the ignorant (not stupid - just people who don't want to think for 15 minutes to save themselves $20, $30, $40 a month).

The problem is educating these people. People always ask me what PC to get - but they never ask me what ISP to sign up to. Usually the first I hear about it is "I just signed up with Bigpond, can you help [...]". Any attempt to steer people towards Internode, Westnet or iiNet get the "I've never heard of them - they sound dodgy" treatment. The "G9" need to get together on a nationwide advertising campaign - "we are the companies who aren't screwing this country" style.

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

"Each ISP has the option of participating in the DSL/SSS transfer process."

And almost every ADSL ISP that can be named choses to participate in the churn process. Of those that don't, there has been a history of other forms of anti-customer behaviour.

Other ISPs may find it harder to gain customers from Bigpond, but it is the customer who loses out as their ability to change providers without significant downtime and extra cost is curtailed.

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

One positive is now Telstra won't be able to "accidentally" churn customers away from other ISP's when they make cold calls.

It also means greater chance of retaining existing customers for other ISP's as customers looking to go to Telstra will be forced to be without Internet for approx 1 week.

In my opinion the decision as positives and negatives on both sides of the coin.

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Richard:

Given that all Telstra ADSL2+ plans will be worse then the respective competition, this is basically a no-brainer from the Telstra management.

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

ToeKnee:

Once again we see the madness of having a schizophrenic Telstra. Telstra Wholesale are the part of Telstra that handles this fast churn system, while Telstra Retail manages Bigpond.

The decision to enable the full 8Mb/s ADSL1 bandwidth was made by Telstra Retail and they didn't even bother to tell Telstra Wholesale what they were doing, leaving Telstra Wholesale to scramble to support the new ADSL options.

Telstra needs to be forced to become two separate companies, with Telstra Wholesale being the infrastructure part and Telstra Retail being just one of the many competing players in the telecommunications market, playing the same price as everybody else to use the infrastructure that our tax dollars paid for.

People need to stop thinking of Telstra as this huge monolith, because it isn't one. Definitely a case of the left hand not being allowed to know what the right hand is doing.

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Neil:

It seems strange to me that the telecommunications market wasn't split more like the electricity market where the 3 components, generation, transmission, and retail are separate.

OK, so the transmission component of telecommunications doesn't have to be over copper wires, it can be by radio, but essentially the principle is the same.

If the infrastructure component, the exchanges and wires, were to be managed by a separate company then it could do engineering for engineering's sake and be content in the knowledge that its services will be sought by the service suppliers and their customers.

All suppliers, including Telstra Retail, should be encouraged to be shareholders of the infrastructure company, rather than there being just the one owner, Telstra, as there is now.

Telstra retail can spend as much money as it likes on advertising and get it customers that way but there would be none of this "we paid for the infrastructure, you can only have access to it on our terms" that happens now since the infrastructure would not be theirs.

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

Sorry guys but you are all missing the point...

Telstra isnt targetting you.

They have 50% market share or whatever it is because they advertise the crap out of things and target it at the "mums and dads"

The ones that think Telstra are safe to use because they are the big telco, because all they see are the advertising, because they are too stupid to realise that across the entire Telstra product range, there is a company out there offering more for less.

Telstra will not change their ways until people are a bit more tech savvy.. Which isnt too far off. In 10 yrs the "kids" of today that are tech savvy will be the mums and dads, and all of a sudden these rip off deals can no longer exist, otherwise they will go out of business.

It is already happening to a point, with ISP's like Internode growing quicker then expected, which is good to see.

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

I agree 100% with that last post. Its the older generation of parents that are buying these heavily advertised plans for there children. They dont know any better.

I cant wait for the day Hel$tra dies.

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

Yes, Telstra targets the mums and the dads, which is working well for the company at the moment. But the company is seriously pis*ing a whole generation of younger, potential customers off (who are also a lot more tech savvy) and who won't touch Telstra with a barge pole. Its decision to ditch churn reflects a short-term executive mindset that is unsustainable in the coming years.

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

Qld convert to Optus:

I recently gave Telstra the heave and moved to Optus. I went from Telstra's 400mb a month for 49.95 to Optus's ADSL2+ 7000mb plus reward of 14000mb a month for the same money. I now get 700mb A DAY! And guess what? When chasing Telstra for credits owing on my account, the happy soul from Telstra said. Oh! IF you HAD told us you were moving to Optus WE would have matched their offer!!!Little wonder people are moving away from Telstra in droves. A point conceded by the Telstra employee I spoke to.

29 February 2008, 8:29 PM (3 years ago)report abuse Send to a friend reply

Anonymous:

Connecting to Bigpond is like buying a computer system from Harvey Norman. As previously mentioned, it will not be long before the kids of today will be adults making their own choices; informed choices.

29 February 2008, 8:34 PM (3 years ago)report abuse Send to a friend reply

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