> >It would appear from the following page that Telecom are charging $59 for
> >the ADSL connection and that the ISP is charging $40 for the
> first 300Mb of
>
> >traffic.
> >
> >http://www.xtra.co.nz/adsl/pricing/
> >http://www.telecom.co.nz/adsl/content/whatdoesitcost4_2.htm
> >
> >
> >I know that this is in fact not the case, and that Telecom are in fact
> >charging the full $99 / month.
>
> >My questions are:-
> >
> >WHY are Telecom charging for traffic when the ISP is providing it?
>
> Telecom bills on behalf of XTRA.

Thats true and not true, that 0.35c goes to Telecom, at least thats the way
it is at the moment, Paradise Net is about to fire up its first dozen
trialists and with the pricing the way it is at the moment it still appears
that we can only charge $40 if we are to be competitive with XTRA.

Crunch of it is this, if a punter does 300 megs, we get $40, if a punter
does 5 Gigs, we get $40, Telecom gets the $1600 worth of additional
traffic - whats wrong with this picture?

Andy from XTRA assured me (and other ISP's interested in ADSL) that its not
like that at all, or its not going to be, but if you look at
http://www.xtra.co.nz/adsl/pricing/ it sure seems that way still today.

> >WHY is traffic above 300Mb charged at $35 per 100Mb?

I don't think the rate is unreasonable, Telecom have to support a ATM
network that all this runs over and its going to get seriously busy once
there are plenty of people with ADSL out in the market, it has to have
controls or the service will go to snot for everyone using it, the problem
is where it kicks in 300Meg is way too little, it needs to be a lot higher
(IMO).

Regards
Shane Cole - MD
Paradise Net Ltd

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Received on Thu Apr 29 13:20:43 1999