There Will Be No Change To Exetel Plan Peak/Off Peak Times

Jouchiyu

收到EXETEL 的信如下說最終不修改時間

Dear XXX,

Firstly let me apologise for any confusion I may have caused you in sending you two email advices concerning a projected change to the off peak/peak times of your current ADSL plan.

THERE WILL BE NO CHANGE TO ANY EXETEL PLAN'S PEAK/OFF PEAK TIMES EITHER NOW OR AT ANY FUTURE TIME

By way of explanation if you can be bothered to read on:

Exetel introduced an 8 hour free of peak download period (from Midnight to 8 am) on 1st March 2004. Since that time we have continued to offer such a 'bonus' on various terms and conditions and for different time periods. We have had many problems along the way - the first being the introduction and then rapid build up of P2P usage which forever changed the way bandwidth provisioning could be looked at. However for much of the past over six years we have been the leader in providing off peak 'bonus' downloads.

The recent introduction, first by AAPT and then by TPG, of unlimited 24 hour a day usage makes off peak bonus periods less useful than they were and the progressive adoption of off peak period free usage' by more and more ISPs (now including Optus) has made the attraction of off peak bonus periods a bit too "me tooish" to have the same value they used to have.

So, the latest Exetel ADSL1 and ADSL2 plans have no peak/off peak periods and are simply aimed at the majority of Exetel's (and probably the majority whole Australian ADSL user base) customers whose monthly downloads are less than 10 gbytes. Of course there are still more than a million 'heavy' download users who "need" far more than that and it seems to me that AAPT and TPG are the logical choice for such users in the future.

I can't tell you what the costs of providing services are to the last dollar and cent - there are confidentiality clauses in all of our supply contracts that prohibit doing that.

I can tell you that it costs Exetel (gst included) approximately 40 cents to provide each gigabyte of data to an end user.

I can also tell you that it costs Exetel not far short of $40.00 per month to provide a customer with a 1500/256 kbps ADSL1 port.

It costs Exetel not much less than $40.00 for an ADSL2 + telephone line port and almost the same to provide a Naked ADSL2 port with a BYO ADSL port costing Exetel not much less than $25.00 a month.

If you look at what you download in any one month and your service type you can work out how much, if anything, Exetel 'makes' from selling and providing you a service. I can tell you that, overall, we make a loss from providing ADSL services over the past 6 or so months compared with making a small profit over the previous six years. We cannot afford to sell at a loss so we will have to take sensible steps to eliminate that problem before it becomes serious - what those steps are has not been decided yet.

We are not complaining about any of this - we set the plans/prices we believed were necessary over the past years and we have no issue with any customer using the plans they selected as they saw fit.

However we obviously got the 'mix' wrong as the various providers began to make very significant changes to their offerings....again no complaint from us....we continued to make up our own minds on what we would offer.

So the new plans, by and large, do not cater for people who download heavily and they don't provide scope for any plan to lose us money. What they have been aimed at is to provide around 60% of the ADSL1 and ADSL2 market with the lowest cost plans by service type for people who download less than 10 gbps per month.

The current plans in use by all customers will remain for the current users - they just won't be offered to new users.

Today, we received the first applications for the new fibre plans and, you may have noticed, they are being offered on a purely 'pay for what you use' basis which is the way we will offer all future broadband plans.

Again, I apologise for any inconvenience I, on behalf of Exetel, have caused you.

John Linton

(for Exetel Pty Ltd)

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