New Zealand ADSL Mailing List


Re: New orcon plans - less for more

From: Brian Gibbons <brian_at_outersite.co.nz>
Date: Wed, 15 Mar 2006 15:36:40 +1300
Message-ID: <061e01c647d9$4a0fc2a0$0175a8c0@ARTHUR>

>From: "Ian Batterbee" <ian.batterbee@aut.ac.nz>
> In other words, If I download between 9 and 11GB in a month, I'll be
> paying $10 more than I did previously.

It's called "the law of averages", your problem is you are Joe Average or
better.

The ADSL "line" that Telecom supply has a sustained information rate of
25kbs which works out to a maximum download + upload capacity of 16gig per
month.

By lowering the usage limit to 4GB and then charging excess they are
actually lowering the available/dedicated bandwidth that is being supplied
to each user (within the price).

So the actual "Sustained Information Rate" (i.e. the dedicated bandwidth you
are paying for in the base price) is 25k * 4 / 16 or about 8k bits per
second.

So we have 8 kilobit per second "Broadband" for $1 per day, that should kick
us up the OECD charts a bit :)

What Telecom has actually done is raised the "average" price of Broadband
but lowered the "minimum" cost. Claiming that they have lowered the price of
Broadband is a bit rich because price comparisons are normally done with an
average of prices.

Under the old UBS pricing scheme if the average usage of each user started
to increase (as it should/will do) then Telecom would not make any more
money; the new scheme solves this issue, as you have found out.

Cheers

BG

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Received on Wed Mar 15 15:37:00 2006

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