Internode blames YouTube for broadband price hikes

Internode blames YouTube for broadband price hikes

Summary: update Internode increased the price of its broadband Internet services on Monday, including several high-usage plans being hit with a AU$40 per month hike, and blamed increasing use of YouTube and BitTorrent for the changes.The company's 100,000 customers were informed by e-mail over the weekend about the price increases, which affect most of the company's connection options.

SHARE:

update Internode increased the price of its broadband Internet services on Monday, including several high-usage plans being hit with a AU$40 per month hike, and blamed increasing use of YouTube and BitTorrent for the changes.

The company's 100,000 customers were informed by e-mail over the weekend about the price increases, which affect most of the company's connection options.

In a statement, Internode's managing director Simon Hackett said: "Since our last major plan changes, we have seen a boom in data-intensive online services such as BitTorrent and YouTube".

"As a result, average download volumes are increasing across all plans due to customers using these data-rich services. At the same time, the cost of delivering IP traffic has ceased to decline," he said.

Internode also added another 13 broadband plans into its existing portfolio of 30 or so options.

Jim Kellett, product manager at Internode, admitted that the company now had "far too many" broadband plan options, but he said the 13 new plans were necessary to provide existing customers with a route to minimise the price rises.

"As we put these new price points out there, we wanted to give existing customers somewhere to go to.

"If you were on an 80GB plan and you were staring at a AU$35 a month price rise, that is a lot and we recognise that for sure, but we have never had a plan between 40 and 80GB, so we introduced a 60GB plan.

"This means they can avoid the price rise entirely or turn it into a AU$5 rise instead," said Kellett.

Existing customers have an opportunity to avoid the price increase by either moving to a different plan or cancelling their service. The price changes will take affect for all customers on 2 July, 2007.

Full details of the price changes can be found here: Internode price hike.

Topics: Broadband, Telcos, NBN, Social Enterprise

Munir Kotadia

About Munir Kotadia

Munir first became involved with online publishing in 1998 when he joined ZDNet UK and later moved into print publishing as Chief Reporter for IT Week, part of ZDNet UK, a weekly trade newspaper targeted at Enterprise IT managers. He later moved back into online publishing as Senior News Reporter for ZDNet UK.

Munir was recognised as Australia's Best Technology Columnist at the 5th Annual Sun Microsystems IT Journalism Awards 2007. In the previous year he was named Best News Journalist at the Consensus IT Writers Awards.

He no longer uses his Commodore 64.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

23 comments
Log in or register to join the discussion
  • shame on internode

    I'm a node customer and I have 20GB with my plan. Who cares how I use that 20GB? It's still a 20GB regardless on what I use the bandwidth. If it costs the same now as it did 6 months ago, why the price increase? It's such a disgrace...
    anonymous
  • G9 pressure

    Obviously they are under pressure due to their involvement with the G9 group for the FTTN plan to make sure their business is highly profitable. I'll stick with the Telstra plan if this is the way that prices are going under their proposal!
    anonymous
  • right...

    Please point me to the article where Simon directly blames Youtube.
    anonymous
  • Common Internode, you can do better than that....

    I am also a node customer. Technology is always getting better and cheaper, so, why a price increase? Simon, don't use Youtube as a scape goat. In other parts of the world, you can get faster broadband for much less and certainly no price increases becasue of Youtube.

    Internode, get your act together or you are going to loose customers. BTW, I know people who are with Adam Internet becasue it is much cheaper ($49 for 20MB).
    anonymous
  • Simon Hacket, you idiot

    In a statement, Internode's managing director Simon Hackett said: "Since our last major plan changes, we have seen a boom in data-intensive online services such as BitTorrent and YouTube".

    ^ from the article. I can't believe this; in other words, Internode doesn't have the capacity to service the caps of all it's customers, so it's making the customers pay to upgrade their infrastructure. What a joke.
    If I pay for 20gb a month, I expect Internode to have the infrastructure to support that. Basically, Internode is saying "well, you're paying for 40gb, but we only have the infrastructure to allow you to download 20gb of that, so if you want the full 40gb you'll have to pay $10 extra a month".
    Internode is almost as expensive as Telscum. Amazing.
    anonymous
  • Shocking Internode

    Well i can tell you Internode you are going to lose thousands of customers from this shameful action, i just cant fathom it... why blame you tube...you are disgraceful people who only care about the big green note thats what you are Internode....I thought only Exetel done things like this.
    anonymous
  • simple people

    All the above posters have no idea what they're talking about. Please learn about the current situation more, instead of taking a typical unintelligent slack arse jab.
    anonymous
  • What's there to learn?

    What's there to learn? That Internode have been flappin on about this great network they have but can't afford to run! Or maybe that just an excuse for a major grab for cash!
    anonymous
  • Double Standard

    Quote from MD Simon Hackett in 2005:
    _____________________________________
    What Internode hasn't even done is RAISED THE PRICE on an existing plan. And indeed we have a tendency to keep raising the value delivered (higher quota, more free content sources, etc) on existing plans without raising the price at all.

    i.e. we haven't done the dirty like (insert other ISP name here), delivering a plan at (say) $49.95 and then raising the price by (say) $20/month a year later because it wasn't working out.
    _____________________________________
    Link:
    http://forums.whirlpool.net.au/forum-replies.cfm?t=437717&p=4#r77

    Interesting that Internode dropped their prices in January 07, and not 5 months later have raised their prices............
    anonymous
  • Internode arrogance

    I've been reading forum post after forum post on whirlpool, where internode customers have been showing their extreme discontent, and all the internode reps can do is stick with their party line, I have not seen one instance of an internode rep saying sorry, or maybe we'll have to re-think this whole process. Arrogance.
    anonymous
  • Telstra?

    I don't work for Telstra, I don't even like them much, but this is worse than anything I have seen from them.

    Basically this is penalising people for using what they already pay for.

    I hope enough people move to another ISP to make them regret this.
    anonymous
  • From a logical standpoint

    "At the same time, the cost of delivering IP traffic has ceased to decline"

    The choice of words makes it seam as if the price is stagnant, not going up either. I am not familiar with their plans, but if the price is the same, and you are paying for a data plan that is the same amount of data, but the price has doubled, then wouldn't it be assumed that they just never intended for people to use what they pay for (which is just stupid) and are making people pay for their mistakes?
    anonymous
  • hmm

    Sounds like poor management practice to me.
    anonymous
  • Not that bad....

    I use Telstra Bigpond as my ISP and even with the price hike Internode still offers better deals. This does not change the fact that ALL broadband in Australia is waaaayyyyy overpriced.
    anonymous
  • Sign of the times

    It appears to be a sign of the times as Ozemail (iinet) not long ago reduced their existing customer's speed and blamed it on Telstra. Their option was for the customer to pay more for the speed they had previously signed up for?
    anonymous
  • Dissapointed

    I'm a Node customer as well, I give them big raps to all my mates who are on Telstra, Netspace, etc cause the Node provide a great service & support at a good price....but now I'm not so sure, to be honest blaming Torrents and Youtube is very disappointing.
    anonymous
  • Lots of yapping and no intelligent consideration

    This price hike does not affect everyone and you get what you pay for. I have been through multiple ISPs and non-existant support, poor availability issues etc. Since being with Internode I have not had a complaint. But I have reduced by business phone calls by $100s and best of all this price change hardly affects me.

    They tell me that my HOME-Extreme-Value on 20Gbytes does not change and my SOHO-Extreme-Pro plan on 40 Gbytes $99.95 per month increase in price to $109.95, ie a $10.00 per month increase.

    Hey, if this means they stay around and provide a good service I can wear $10. Many of you spend more than that on a box of tobacco to burn!
    anonymous
  • yadaa yadaaa, so much noise , so little content.

    Pulllleeeaasseee, pull those off the hip reactions in , what a load of bull.
    I'm a node customer, and yes price going up is a shock. No its not a direct attack on your family, ego or human rights.

    They work on averages, thats bulk rates for the morons. Average customers use more , costs go up. Running around the other ISPs several price hikes are happening.

    So please , this is anot a apple/ Linux forum, keep the pasison in check and use your head. If they have it right , stay, if the plans are not competative, leave. But keep the bitching to the facts little ones.
    anonymous
  • It's not a quite a double standard

    What Hackett is implying in his comments is that there are other ISPs that worked out the price they'd need to charge for a service but then offered that service below that price, with the full intention of raising the price after a short period.

    I don't believe this is what Internode's done with their recent price rises. I believe what's happened is that Internode's had to re-evaluate its costs, the technology available and perhaps how the market has changed, and decided to increase some of it's prices.

    It's worth noting that the price rises don't apply to all of Internode's plans: it looks to me like the plans with lower quotas have not increased in price.

    With respect to the overall market, remember that Internode and most (perhaps all) other ISPs need to lease bandwidth and access from other providers. In Australia, there is one particular provider that owns a lot of the bandwidth and access infrastructure ... of course I'm not suggesting that this provider manipulates the market to maximise its own profit ...
    anonymous
  • Its not quite a double standard-of course not

    "What Hackett is implying in his comments is that there are other ISPs that worked out the price they'd need to charge for a service but then offered that service below that price, with the full intention of raising the price after a short period."
    Hackett got it all wrong.The plan he refers to was offered for 12mths as that is the deal isp s have with Telstra.He preached Telstra didnt give discounts to isp s and was proved wrong.So the plan was sustainable with the telstra discounts.Those discounts have since been removed.At least that isp let you stay on the plan until your contract had run its course,unlike Internode who have shafted their customers with a take it or leave attitude.
    Strange though because those same comments he made are now what his own company have done.Ironic isnt it?
    They were offering unsustainable plans,simple.They have been caught out doing what they accuse their competitors of.Hardly any of the other major isps have put up prices in the last 5 mths,the ones who have the price rises have been tiny in comparisom.
    Internode are the new Telstra of isp s,like it or not.
    anonymous