No the marketing models in the US don't assume flat rate, but 75% of providors started with a flat rate model with the rate dependent on the speed you wanted (US$39 for 128k-256k is fairly common). After many customer complaints about performance many of those are now moving to a monthly charge and usage billing / Mb just like Telecom.

I cannot say much on the pricing as this is being handled by marketing. But my personal opinion is...

You have to remember that New Zealand has different economies of scale to the US and even so our DSL pricing is already competitively priced with US carriers! A major contributor to our costs over the US is the international undersea cables or satelite links we require to connect to the internet. Also we are a geographically distributed country and it costs a significant amount to build a nationwide backbone network.

ISP experience shows that 5% of users use 68% of the bandwidth!
This is the same 5% who are likely to be early adopters of ADSL.

The usage model has some strong advantages...
- we can scale the network according to demand
- your performance expectations can be more easily met
- it's fair! you pay for what you use!

I understand that several other options are being looked at. These will probably be something like pay $X and get XGb included (and I know they are talking Gb!).

Lloyd Group (www.lloyd.co.nz) our only NZ DSL competitor are currently charging $900 for a 128k unlimited.

Mark :-)

>>> Steven Jones <StevenJ@ghw.co.nz> 4/May/1999 12:07pm >>>
The marketing models in the states assume flat rate in all cases? here
we have volume charges, unless or until Saturn enter the cable and/or
adsl market I think Telecom will dominate the local loop, even then
Saturn's impact will be limited due to geography, however that is
happening with providers like clear? who i assume have their own local
loop in areas?

Thing

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Received on Tue May 4 13:38:11 1999