'œFat' Internode's plan changes a 'œjoke', claims Linton

Renai LeMay
Wednesday, 09 February 2011 03:18

IT Industry - Market

Internode yesterday deleted some 60 of its 78 broadband plans from its roster, drastically simplifying its options and adding several 'packs' that could be added onto new standard plans. However, in a fiery post on his blog this morning, Exetel chief Linton lambasted the changes, claiming the move was 'simply the desperation of a bunch of accountants, who say: 'We need more money to pay the bills, but you can't incur any more cost'.'

Linton claimed several of the items offered by Internode in its $10 Power and $30 Business add-on packs actually cost the broadband company 'nothing', and that it was getting away with charging 'the dumber customers for it by pretending it's got some value'. 'Now, if that isn't desperation, I don't know what is,' he said.

'You will see similar attempts by more and more suppliers in the not very distant future,' said Linton. 'It is part of the ever encroaching dishonesty in the selling of communication services to residential users that was always a problem, but, thanks to Telstra's efforts over the past two years had become endemic.'

An Internode spokesperson has been invited to respond to Linton's claims.

Linton's argument is broadly that Telstra's recent marketing push into the broadband area '” which has seen it cut plan prices drastically and boost quotas on its offerings, in an effort to make them more competitive in the market. The telco has also introduced a range of bundled offerings with its other product lines '” for example, mobile.