Internet

20 May 2010

Big Time loser

Vampire Telecom has today pulled its Big Time broadband plan, saying it has become unviable.

Released in July last year, the plan offered unlimited speed and, more importantly, unlimited data usage for $69.95 per month. Telecom said up front traffic would be managed on the plan - bandwidth would be limited and speeds throttled. But as this was the only plan in New Zealand offering unlimited data, tens of thousands of customers flocked to sign up. And now it has been pulled.

Why? Because Telecom says an "extreme minority" has been using astounding amounts of data, in some cases terabytes of data each month. And while Telecom has tried to manage this minority, it says high users have been using technology that circumvents Telecom's traffic management. Telecom has found the resources required to circumvent the circumventers has proved too much, and since it can't successfully throttle these high users, the plan has to go.

In a statement that must have made Telecom's public relations staff consider a stiff drink, Telecom's home services director Ralph Brayham continued on from blaming the customers for the plan's demise by saying that because Telecom was the only ISP offering unlimited data, it had ended up with "all the vampires".

This is in stark contrast to the launch last year, where the same Ralph Brayham said the plan was designed for power users who wanted to download unlimited amounts of data without worrying about punitive charges for blowing their cap.

One wonders whom Telecom thought its target market for this plan was. Heaven forbid subscribers to a plan hyped as having unlimited data should try to use as much data as they wanted. It seems the plan has been pulled because customers actually tried to use it in the manner it was advertised. To then refer to those customers as some sort of blood-sucker or parasite is incredibly ungrateful.

This is Telecom's second failure at launching an unlimited data plan. In 2006, Telecom launched the ill-fated Go Large plan which promised "unlimited internet usage at maximum download speeds." But neither of these claims was true. After a Commerce Commission investigation instigated by Consumer NZ, Telecom refunded around $8.5M and was fined $500,000 by the Commission for misleading customers and breaching the Fair Trading Act.

So what options do Big Time customers have? Telecom suggests high users can move to its Pro plan which offers 40GB of data for $79.95 per month - that's $10 more per month than Big Time. So, by pulling the plan, Telecom has successfully stopped the "vampires" and is now encouraging the remainder of Big Time customers to pay more for less data.

Telecom may want to ruminate on just who is behaving like a vampire.

Marc Wendelborn - Research Writer

Comments

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Kathy 20 May 2010

Does customer has any rights at all for this particular issue? The last time when they canceled the Go Large plan, at least they leave us (the existing Go Large customer) alone. They just stopped taking in more customer to that plan. Now they scrapping it completely even for those existing customer. Is there something that we, the customer can do, or are basically at the mercy of Telecom?

Rich 20 May 2010

Having been with telecom since Go Large. When the closed Go Large & forced us on to a smaller plan or pay more for the equivalent Big Time plan. I complained as I was tied into a contract & basically forced to pay more while getting the same.

With this change it is allowing existing Big Time customers to break away from their contracts and move to another ISP. Which is exactly what I will be doing & no doubt I won't be the only one thats changing.

Andrew 25 May 2010

This is not even the second time Telecom has been burnt by unlimted use plans - anyone remember Jetstart? this was an ADSL internet plan that was available around the years 2000 - 2001 (if I remember correctly) it offered unlimited use internet for about $65 per month at 128K download and upload. You had to pay 1/2 the plan cost directly to Telecom and the other 1/2 to your isp. all of the isp's introduced data caps or massively increased their prices at the same time - I am sure Telecom was behind this. (My isp charges increased from $30 to $150 per month - had to cancel and go back to dialup). And don't forget $10 Txt also.

Jude 26 May 2010

Telecom are the vampires, have we no comeback at all what are our rights? This is the second time Telecom have renegged on a contract to us with Go Large and now Big Time it is about time someone took them on. I will be relinquishing all telecom products and services. So much for loyality to the customer.

Shane 26 May 2010

Hi team I too was burnt by Telecoms axing of the Go large plan but worse was that before that they actually sent me an email advising me that they have changed my plan as requested by me. Well that surprised me as I had not done this at all. I quickly got on to them and forced them to put me back on to go large. It was possibly coincidental that at about that time there was a massive reduction in my internet speed and disconnects. Then the notices from Telecom telling me that as the Go Large plan and any current holders was ending that they will automatically put me on a plan that they believe would suit me. I felt bullied into accepting the Big Time at extra costs. So now I was on the Big Time plan, not only did they slow down day time data but they left a very small window of high speed when most of us would be in bed... absolutely ridiculous. Now once again Telecom is breaking a contract between us, if we breached the contract, we would be hit with change of plan or diconnection fees etc. I never received any of the money for them breaching the Go Large Plan so did anyone actually receive anything???. I think the bit that hurts the most is I feel powerless to do anything about it, so the big wheel wins again.

Martyn 27 May 2010

First - an inaccuracy... Telecom is not the only company who has (and possibly does still) offered unlimited plans... Sligshot did some years back & Horizon Pacific did also...

Second - Personally, I think that the people who 'abused' the plan, probably consisted of a large portion of 'telecom haters'.

Third - "The stupidity of telecom"... Why would one pay $30 more (than a plan offering a 'normal' data cap, i.e., ~20GB) for a internet service, if not to download more?!? Surely they had to expect that their customers would make use of as much data transferring as possible (especially at that fairly reasonable price point, much lower than other options I have seen... Though not the two mentioned above)

Four - What do ISP's expect when the introduce unlimited plans... I mean if your a person who has been annoyed, or frustrated with the limits put on their internet usage (read: limits of what they wanted to do on the internet) by some many other ISP's, of course there is going to be some heavy usage! - If it was like the US has (Most ISP's don't limit, unless your downloading in exces of 150GB a month), I doubt this would be an issue!

Jack M. 2 June 2010

Yup, Telecom strikes again. I was on Go Large, got kicked to Big Time, and now will have to look elsewhere again. It probably won't be Telecom, and I'll finally cancel my landline as well, will go to Skype instead.


I was just wondering though - I can still make unlimited local phone calls for a standard monthly fee - how many local calls would I have to make before that's counted as vampirical?

If the deal says "unlimited" bandwidth, why is it even metered? Unlimited local phone calls aren't metered. Just a thought.

- Jack M.

James 29 June 2010

Hi.


Why no feedback to these questions? Why have an official Blog on your page if we are not going to get feedback and answers? Why have a person write an article and just leave it hanging out. Seems to be a bit of interest in this subject, so why don't you follow up and follow through. Let the baby article grow up with daddy ok?

Cheers

Consumer Staff 7 July 2010

@Kathy

Hi Kathy,

Unfortunately not. The terms and conditions for virtually all broadband plans say that the provider has the right to alter or terminate any broadband plan they offer at their discretion. Because of this clause, it's difficult for them to be convicted of misleading consumers or of not fulfilling their part of the contract. Check your terms and conditions but I suspect you'll find that clause in your contract. If it's not there, you can make a complaint to the Commerce Commission. Almost all ISPs have changed their plans over time, but most have changed for the better.

You aren't at the mercy of Telecom. If you're unhappy with what you're being offered as a replacement for the Big Time plan, or you're unhappy with that ISP for any reason, you're free to switch to another ISP. Our broadband plan selector on our website will show you all the current residential plans available.

Best regards,

Marc Wendelborn
Research Writer
Consumer NZ

Pavel 13 July 2010

More than. You can order a new plan or change your existing plan online on Telecom web site. But you can't cancel your plan this way. The only way is calling to Telecom and spend an hour for waiting and talking.

As Telecom employee informed me all Big Time customers who do not change their plan or cancel their subscription by personal calling to Telecom will be automatically switched to Adventure plan (20 GB cap, $59.95).

I said that this is significant change of contract conditions and falls under Unsolicited Goods and Services Act, but he answered:

"The withdrawl of the Telecom big time plan is within the terms and conditions Telecom has set out. Telecom does reserve the right to withdraw or change its broadband plans at anytime, which it has done in this case. There is no contract with the broadband plan, instead the 12 month contract you are referring to is in regards to PSTN line, or you telephone services".

mike 20 July 2010

just looked up telecoms broadband terms and conditions on the telecom website, can't seem to find any clause that lets them change plans at their will, can someone please link me to this clause?

paul 29 July 2010

Thanks for the advice everyone. My family of 5 users have for the second time been the victim to telecom in its broadband exploitation. We do use a lot of GB.. Other sources advise that telecoms motivation in kicking us off in addition to profit is to free up bandwidth for Tivo which will struggle to perform if the grow in high use continued. Roll on a new pipe and plans we buy of capacity not volume. I Look forward to finding a new ISP who values their customers.

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