New Zealand ADSL Mailing List


RE: New orcon plans - less for more

From: Wayne Kampjes <Wayne.Kampjes_at_telecom.co.nz>
Date: Wed, 15 Mar 2006 20:15:57 +1300
Message-ID: <39AAF5E571F8E2409A05581BA67B6799032DDB7E@AKEXBE01.telecom.tcnz.net>

 I thought this was about Orcon raising the prices yet Brian comments on
Telecom doing so?

-----Original Message-----
From: owner-adsl@unixathome.org [mailto:owner-adsl@unixathome.org] On
Behalf Of Brian Gibbons
Sent: Wednesday, 15 March 2006 03:37
To: Ian Batterbee; adsl@lists.unixathome.org
Subject: Re: New orcon plans - less for more

>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 20:16:21 2006

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