Internode Blog

Plan and pricing changes for some existing customers

Thursday, July 28th, 2011 by

A set of new plans were released by Internode in July 2011.

The changes that were made and the drivers for those changes were explained at the time, here: http://blog.internode.on.net/2011/07/12/internode-plan-changes-july-2011/

In that post, the following statement was also made:

Please note that Internode is currently considering whether some pricing/plan changes may be necessary for a subset of existing customers who are also outside of their initial contract terms.

That consideration process has occurred, and while the majority of our customers are not impacted, unfortunately some of our customers will be (to varying extents, depending on their current plan and their geographic location).

We are commencing a process of notifying some of our existing customers, once they are out of contract with us, of changes to their plan pricing and conditions – and that we’ll be moving them to one of our new plans unless they decide to do something else.

What is happening?

For affected customers, once you come out of contract with us (or if you are already out of contract), you may be notified of an impending change by Internode through a notice delivered to the same destination address that you use for your normal Internode bills.

That notification will give you at least 30 days notice of the intended change to your plan and pricing.

You will have the option to accept the change by taking no action.

You can elect to change to any new plan available in your area by using the Internode online plan changer to select a new plan.

You can also elect to leave Internode if you are unhappy with the change proposed and not prepared to move to any alternative available plan.

If you do decide to leave, no early termination fee will apply, as you will already be outside of your nominated contract term.

Note that, depending on your location, your bundling status, and your data consumption requirements, you may see no effective change to the price you pay and the benefits you receive.

Some customers who are not currently bundling NodeLine voice services with a broadband service may also find that they can retain their current effective plan value by electing to sign up for NodeLine on the same line as the broadband plan.

These options will be listed in the notification sent to you, and the notice will be customised to suit your specific circumstances (location, bundling status, and current plan).

We sincerely regret the (rare) occasion of having to impose a price change for some of our existing customers.

This is not being done lightly, and despite the Internet industry being a bit of an anomaly in the services industries in general (in the sense of it not tending to impose price rises very often, compared to things like power, water and gas bills, for instance), on this occasion these changes are necessary ones.

We thank you sincerely for your support of Internode to date, and should your reaction to receiving a notice be that you decide to change to another provider, we naturally respect that decision and we hope to make you a better offer that may meet with your approval at some point in the future.

Of course, in the majority of locations in which we operate, where we use our own direct DSLAM services or those of other competitive wholesale DSL port providers, our pricing propositions have generally improved on average in this last round of pricing changes.

As a specific exception to that generalisation, ‘Easy Naked S’ customers in particular (ex contract) will be affected by this process (in the manner described below).

Take a look at the new plan tables and see how they work for you – in some cases they represent equivalent or better value in practice (depending of course on your quota requirements and on whether you use, or are prepared to consider using, bundled voice services as a part of the new plans).

How will notifications work?

Notifications will only be considered for customers who are outside of a contract term already or who fall outside of their contract term in the future.

In addition, customers who have signed on to a month-by-month plan recently will not become subject to consideration under these plan changes until their service is at least 3 months old.

This is how the notifications will work, if you receive one.

Notifications will provide at least 30 days notice before the nominated change will become effective, and will include the following information:

  • The plan you are currently on
  • The plan you will be moved to if you take no action
  • The date after which the change will take effect

You will have at least 30 days to queue a plan change to any available new plan using the online plan changer, or to decide to leave Internode, instead of accepting the nominated change to your plan.

If you do not take either action, then your service will be changed to the nominated new plan on the next plan rollover date after the date noted in the notification.

Which plans are affected?

Customers who are out of contract on the following plans may receive a notification that their plan is changing.

No change will occur without a specific customer notification that includes an appropriate notice period.

These notifications will be initially sent to customers who are already out of contract.

As further customers move out of contract in the future, they will then become eligible to receive the same notifications and changes if they remain on the applicable plans at that time.

(Notified changes apply to customers notified on the plans concerned regardless of bundling or option packs in use at the time)

If an out-of-contract customer receives a plan change notification, this is what it will involve:

Easy Naked S (150GB)

Notified customers on this plan will see an increase in price of $10 per month with no change to other plan terms and conditions.

In particular, the plan will otherwise operate exactly the same as it already does, and it won’t automatically gain the bundled VoIP proposition inherent in the new Easy Naked plans.

Customers are welcome, instead, to move to any of the new Easy Naked plans to take advantage of the bundled NodePhone VoIP plan (including $10 worth of call credit per month) that comes with those new plans.

This pricing change stems from detailed analysis of customer usage patterns on this specific plan compared to other plans. This analysis has shown that typical customer data usage on this plan is far above the level projected when the plan was originally released, and that it is also well above the average utilisation percentage for other plan types in our customer base.

Accordingly the associated network costs to support this plan are not being fully recovered by the price originally charged. This change in pricing brings the cost of the plan in line with its real operating costs.

Easy Reach 60 and SOHO Reach 60

Existing Easy Reach 60 and SOHO Reach 60 customers who are notified will be moved to a new plan unless they have elected to move to any other available plan in the meantime.

The specific financial impact of this change for each existing Easy Reach 60 and SOHO Reach 60 customer (based on their location and bundling status) will be explained on the notification delivered to each customer concerned. In some cases there is no impact, in others the price changes by $10 per month.

Our current wholesale port supplier pricing and its structure (including a lack of bundling discount support outside of ‘Zone 1’ areas, an excessive ‘AGVC’ cost component, and the ongoing presence of a major price squeeze against the same suppliers retail pricing) are driving these changes to the retail plan concerned. These changes ensure that the plan is sustainable against its real costs.

Easy Reach 200 and SOHO Reach 200

Notified customers using Easy Reach 200 and SOHO Reach 200 will be moved to the new Easy Reach 100GB plan.

The specific financial and quota impact of this change for each existing Easy Reach 200 and SOHO Reach 200 customer (based on their location and bundling status) will be explained on the notification delivered to each customer concerned.

Our current wholesale port supplier pricing and its structure (including a lack of bundling discount support outside of ‘Zone 1’ areas, an excessive ‘AGVC’ cost component, and the ongoing presence of a major price squeeze against the same suppliers retail pricing) are driving these changes to the retail plan concerned. These changes ensure that the plan is sustainable against its real costs.

Internode Easy Broadband (IEB) Classic and IEB Version 2 (plans using Telstra Wholesale ports only)

Notified customers on these plans are to be moved to a new plan (as specified in their notice) unless they elect to move to any other available Internode plan in the meantime.

Customers on these plans who have been connected on ‘Agile’ ports will not be affected by this change.

The specific financial and quota impact of this change for each existing IEB customer (based on their location and bundling status) will be explained on the notification delivered to each customer concerned.

Our current wholesale port supplier pricing and its structure (including a lack of bundling discount support outside of ‘Zone 1’ areas, an excessive ‘AGVC’ cost component, and the ongoing presence of a major price squeeze against the same suppliers retail pricing) are driving these changes to the retail plan concerned. These changes ensure that the plan is sustainable against its real costs.

Important points:

Customers who are in contract will not receive a plan change notice while they remain in contract.

Customers who are notified once out of their contract term can select any alternative available plan or leave Internode to avoid the change notified to them.

If you consider your plan to be eligible for change but you have not yet received any notice about a change in your plan conditions, then your plan has not yet become the subject of an impending change.

No plans will be changed without notification and adequate notice.

Customers who terminate their services while within an existing contract term will be the subject of the appropriate Early Termination Fees as normal.

 

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