Sponsor's Message

Well that's wonderful, and I'm sure we're all chuffed to bits that so many more of us can now (if we want to) get ADSL through our existing phone connection.

But there's still a bit of a problem.

Huddled high in Telecom's ivory tower, surrounded by the trappings of success and conspicuous wealth, a bunch of marketing men and strategists have obviously decided that they really ought to make the most of their local loop monopoly while they can. Either that or they decided to have a little fun and play a cruel trick on those patiently waiting for broadband prices to drop to an affordable level.

After all, these slick-willies in their penthouse office suite are well aware that the days when they can plunder the public's purse by virtue of a vise-like grip on the "last mile" are very much numbered.

Yes, cracks are already starting to appear in Telecom's local loop monopoly. Not only are wireless IP (and soon to become VOIP) providers popping up left, right and centre but TelstraClear are also laying as much fibre and cable as they can afford.

However, the real coup de gras may well be delivered when a bunch of boys from the Commerce Commission pay a visit and give Theresa Gatung such a stingy chinese-burn on her wrist that she will scream "uncle" and finally open up the local loop to competitors.

And, if Telecom's idea of what constitutes a good deal (in the form of their wonderful new ADSL price-plans) are anything to go by, that day can't come a moment too soon.

Already the net community's reaction to these ridiculously "status-quo" plans has been decidedly negative.

Net users have voiced their disgust at these supposedly more "affordable" plans in here as well as in local newsgroups.

Telecom's marketing gurus actually seem to be so far out of touch with reality that they think 2GB at 256Kb/S represents the needs of a "heavy user" and that 500MB is plenty for the average broadband user.

Now let's see -- at 256Kbps, you can download for just 5 hours before you hit that 500MB cap. The 500MB JetStream 256Kbps plan costs $39.95 plus whatever your ISP adds (in the case of Xtra, that's going to be either $34.95 or $20, we don't yet know for sure).

However, even if we're charitable and assume the total cost for this plan is $59.95 ($39.95 + $20) then that works out at cost of $12 per hour when downloading large files or high-bitrate video streams. THIS IS CHEAP???

But hang on, here's some even more depressing news for local broadband content producers and net-users alike: unlike the slower JetStream Starter offering, these new plans don't differentiate between national and international traffic so every byte you send and receive counts towards that miserly data-cap, even if it's coming from just across town.

And wait - if/when you accidentally exceed your data-cap while downloading at 256Kbps then you'll be paying over $20 per hour for the privilege of using a service that many would argue isn't even "broadband." Indeed, the OECD defines broadband as "a downstream connection EXCEEDING 256Kbps" (the emphasis is mine). Clearly, by world standards, Telecom's new offerings don't quite qualify do they?

I certainly hope that the government and its relevant consumer protection agencies are looking at Telecom's arrogance in launching these new ADSL plans and realise that it is clearly in the best interests of NZers that access to the local loop be freed up as soon as possible.

And don't let Telecom fool you with their claims that internet traffic is expensive because of our remoteness from the rest of the world and these costs have to passed on to customers. Even if that's true -- why are they charging the same price ($0.20) to transfer a megabyte of data between Remuera and Ponsonby as they are to transfer that data between Auckland and London?

And, check this out (note, despite the name and similarity of logo [I'll sue I say!!] there is no relationship between this publication and the ISP that link points to).

How is it that an Australian DSL provider (with such cool name) can offer uncapped flat rate ADSL at true broadband speeds for a surprisingly low price? Surely Australia isn't that much closer to the rest of the world that the international traffic costs are dramatically less -- are they?

Unfortunately, I very much doubt we'll see real broadband being delivered by DSL at an affordable price until Theresa is seen to run from her office with bloodied wrists and tears in her eyes.

In the meantime, I suggest that if you're looking for something faster than JetStreamStarter then you ought to expresses your disgust at Telecom's contemptuous attitude to the market by opting for a wireless, cable, or satellite service if they're available in your area (obligatory mention of the sponsor's offerings inserted here :-).

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