OzEmail deals out 'no contract' broadband option

The Internet service provider (ISP) claims to be the first vendor to have broken the AU$30 monthly price barrier on plans and now said it had "set the bar even higher" with its no contract offers.

Managing director of OzEmail Trevor Duff said in a statement yesterday OzEmail's new offer will present a challenge to other broadband providers that "lock you in with lengthy contracts" and charge excess usage fees and penalties for contract terminations.

"Many providers have rates that appear competitive, but only if you switch your telecommunications provider. You're locked in to longer contracts, with excess charges and an expensive 'out' option if you are not happy with one or all of their services," said Duff.

A spokesman from OzEmail said today that all plans would remain the same in download allowances, speeds and monthly prices; however, he admitted that all customers are now charged an upfront fee of AU$99 for line activation and an additional AU$99 for the modem, which previously came free on the 18 month contract plan.

OzEmail also said customers that terminate their connection within the first three months will incur a fee of AU$55, which it said is passed over from the charges OzEmail receives from Telstra.

Current broadband customers will have to wait until their existing contracts expire, according to the OzEmail spokesman. However, he said new customers and dial-up customers can adopt the month-by-month payment option straight away.

"Now, with no fixed term contracts to sign-up to, our customers and business customers have the peace of mind you can only get from OzEmail Broadband," said Duff.

Monthly plans start at AU$29.95 per month for a 300MB download limit and maximum speeds of 256Kbps, which is speed-throttled if the download limit is exceeded; and unlimited plans start at AU$49.95 with a 256Kbps download speed.