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Re: [SLUG] OT - Telstra to cap flat rate ADSL & Cable plans at3Gb/month



On Thu, 7 Jun 2001, James Buchanan wrote:

> I disagree that Telstra are providing a good service for the money. In the
> USA, cable is a measely US$20/month. In Canada, my friend Marc gets his
> 1Gb/sec ASDL for CAN$20/month, which is something ridiculous like AUD$25 or
> whatever. Telstra have no real competition when it comes to broadband, and
> they are ripping us all off. You watch them squeal like pigs when
> competitors like AT&T come in and Telstra has to lower their prices to
> something more reasonable. AT&T have had an office in Sydney for at least 5
> years, it's only a matter of time before they come in and clean up.

There is, unfortunately, a huge difference between the US/Canada and
Australia.

Australia has roughly the same land mass {in area} as the continental USA
{Alaska excluded}. However, we have roughly one fifteenth the population
over which to spread infrastructure costs.

This is where the difference comes in - the infrastructure {cable,
exchanges, dslams etc} cost the same over here as they do in the US - but
for every piece of gear in the US there's 15 people to spread the cost
over compared to one person over here.

Corrospondingly, each piece of infrastructure costs more by a ration fo 15
to 1.

Which doesn't mean Telstra isn't ripping us off blind - especially since
most of the infrsatructure has been long since paid for {cable, exchanges,
trunk routes etc}.

A reasonable price difference is to be expected - and is in evidence. The
$120 a month for a 512/128 ADSL service compared to the average $30US
{$60 Australian} is right out there. However, the caps on data, and more
importantly the price charged for excess data, are pure profiteering on
Telstra's part. Especially when you consider that current technology {DWDM
for example} gives approximately 50 to 80 times the data capacity for a
given bearer than was available when the bearer was installed.

I had hoped that the Southern Cross cable would alleviate some of this -
but it only seems to have made it worse.

> I doubt seriously that Telstra gives a shit about its customers. They
> certainly don't know how to run a business, if they treated their customers
> with a bit of respect, stopped grossly overcharging and their customer
> service people were not so rude, I'm sure they would win more customers and
> make bigger profits as a matter of due course anyway.

They don't. Ever since Little Jonny sold a large percentage of the company
off, the push has been simple - make more and more money, to keep the
shareholders happy. What will happen if the rest of Telstra is sold off
makes me shudder to contemplate. If prices are outrageous now, what will
they be like when the whole company is privately owned, and completely
unregulated?

> I wonder how much a T1 would cost me through Telstra? All channels in the
> T1. In the USA, it's a piddling US$300/month, fractional T1's are
> drastically less. I'm sure it would be some ridiculous cost here throught
> Telstra.

We don't use T1's in Australia. We use E1's - different standard. And it
depends on what you're talking - point to point {I.E. direct connection}
or point to multi-point {I.E. ISDN}.

As an example, from a recent quote by Optus for me - a point to point
frame relay, fractional E1 {256k} costs the following.

Access line - 256k - $700/month approx
PVC charge - 256k - $120/month {approximate}

This is _Optus_ rate, running over HDSL tails {I.E. little Telstra
involvement}. Telstra's rates for the same line are approximately 50%
higher.

A 30 channel ISDN primary rate line {I.E. an E1 ISDN line} costs
approximately $1500 a month _PLUS_ call charges. Telstra is your only
option there.

Oh yes, we're being ripped off - but not by as much as direct comparison
with the US would indicate.

DaZZa


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