Internode wholesale negotiations better, still not "equitable": Hackett

Despite closing gaps on pricing between plans, pricing is still not equitable says Internode MD, Simon Hackett

Internet service provider (ISP), Internode has furthered its negotiations with Telstra for more equitable wholesale pricing, following concerns the ISP’s managing director, Simon Hackett, has aired in previous months.

Internode this week announced price cuts to a number of its ADSL broadband plans, in addition to increased data quotas, delivered over Telstra wholesale ports. The new plans close the gap between those customers on Telstra ports, as opposed to those on better value plans delivered over Optus' wholesale network or Internode's own DSLAM equipment.

However, Hacket told Computerworld Australia that pricing is still “nowhere near equitable”.

“This just an interim improvement on the path to proper resolution of the current vertical price squeeze,” Hackett said.

According to Hackett, negotiations are continuing with Telstra wholesale on “pretty much” a daily basis.

“I have spoken with many people at Telstra in detail on this issue, that includes David Thodey.

“My position is abundantly clear within Telstra,” he said. “The ball is now in their court to resolve the issues that exist.”

In order to simplify ongoing pricing difference, Internode has also applied a two-tier pricing structure on the Home-Fast2 broadband plans. Zone 1 exchanges, where Telstra is forced to compete with alternative DSLAM networks will feature lower prices than zones 2 and 3, where Telstra currently has a monopoly on wholesale.

In August, Hackett acknowledged “substantial” upgrades to its broadband plans were on the way, however noted the plans would only be offered once pricing agreements with Telstra wholesale had been resolved, over whose equipment Internode currently resells ADSL2+ in areas it has not installed its own DSLAMs.

At the time, Hackett speculated that Telstra Wholesale was giving some retail internet service providers better deals and “playing favourites”, because they hadn't built out their own competitive broadband infrastructure as some, like Internode, TPG and iiNet had.

Prompted by these complaints, the Australian Competition and Consumer Commission (ACCC) published an open letter stating that there might be a case for 'declaration', or tighter regulation, of Telstra's ADSL broadband services.

View the revised plans at the Internode website.

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More about Australian Competition and Consumer CommissionAustralian Competition and Consumer CommissionetworkIinetInternodeOptusTelstra CorporationTPG Telecom

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