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Monday, 07 September 2020 10:27

Aussie Broadband should level with users about price rise

Aussie Broadband should level with users about price rise Image by 3D Animation Production Company from Pixabay

ISP Aussie Broadband has informed its users that it will be increasing its prices after the end of November, but the reason for the increase appears to have changed from what was originally stated.

The note about this is dated 3 August on the provider's site but was only sent to users on 5 September (I am an Aussie Broadband subscriber). Why the delay in sending this email around?

NBN Co announced a few days back that it would be extending its 40% additional wholesale connectivity virtual circuit capacity offer at no extra cost to ISPs until the end of November.

When managing director Phillip Britt made the original announcement about the price rise back in July, he said the company had seen its customers settle into a pattern of using about 10% more bandwidth than originally predicted pre-COVID, and believed this reflected “permanently changed behaviour”.

But the most recent notice — the one I got on 5 September — says I can continue at the same price I pay now ($99 per month for 100/40Mbps) if I am agreeable to having my upload speed — not download speed, mind you — cut by half.

Else, the notice states, I would have to pay an extra $10 per month.

So what is the issue? Downloads? Or uploads? It is indeed a little confusing.

Further, the 5 September notice says that the company is losing money on a lot of plans like mine. That sounds a bit crazy – how does a company stay in business while it is constantly losing money?

As I have written before, I think the company is using the COVID-19 issue as an excuse to slip a price rise through. When Britt wants, he can explain things very simply. It's surprising that he is choosing not to do so this time.

[The company's response is here.]

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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