06 April, 2006

Faster, Cheaper Broadband...?

We have a broadband account with Xtra, which is New Zealand's largest Internet provider, being the online division of Telecom.

Xtra have launched what they're calling "Faster, Cheaper" broadband services this week. I am of course interested to see how this would benefit us. How much faster, how much cheaper would our broadband access become? We've been paying $49.95 a month for the Explorer plan.

Yesterday we received a letter in the mail advising us of the changes to our account. No where in this letter is there any mention at all of it being "Cheaper" and indeed the Explorer plan stays at exactly the same price, so we're still paying $49.95 per month. How can Xtra claim that they're delivering "Cheaper" broadband?

And as for a faster connection, I know there are many factors to take into account when measuring broadband speed but I've yet to see any change at all in the speed of our connection.

Faster, Cheaper broadband? I think not. I feel duped.


Adam Christopher said...

Technically it is cheaper, because you are paying the same price for a faster service :-)

But where's my letter? I want my 3.5Mbs!

Paul Scoones said...

Imagine that you go to buy a car and the dealer offers you a "faster, cheaper" car than the one you already own. But you then discover that although the car is indeed faster, it's the same price as the one you have - would you honestly regard it as cheaper?

I think the commerce commission watchdogs would agree that unless there's a price drop on the same plan I was on before, you cannot say it's cheaper. Which is undoubtedly why my letter from Xtra only says "faster", not "cheaper".

Adam Christopher said...

Weeeell...if you are paying $49.95 for 3.5Mbs ADSL, which is $14.71 per megabit. The old plan was $49.95 for 2Mbs ADSL, which is $24.97 per megabit.

So you are getting faster internet (3.5Mbs vs 2Mbs), and it is also cheaper (by $10.26 per megabit).

In theory anyway :-)

My letter still hasn't arrived...