Internode revamps broadband plans after Telstra negotiations

Many tens of thousands of users set to be affected by overhaul

Internet service provider, Internode, has revamped its ADSL broadband plans to make them all run at ADSL 2+ speeds after protracted negotiations with Telstra [ASX:TLS] wholesale.

The move will consolidate 14 old plans into six new ones. The three entry-level Easy Reach plans will have ADSL 2+ speeds and increased data caps, which will now include both downloads and uploads.

If customers don’t want uploads counted as part of their data caps, three Soho-Reach plans provide a static IP and unlimited uploads for an extra $10 per month.

“Most customers don’t care about uploads being counted and it allows us to do a more apples for apples comparison with Bigpond, Optus and iiNet who do the same,” Internode product manager, Jim Kellett, said. “There’s also a massive boost in quota, which more than compensates users for that aspect.”

According to Kellett, the changes will affect “many tens of thousands” of users. He said the new deal with Telstra was signed a few days ago after lengthy and frustrating negotiations.

“The main change is that all our plans are now done with a higher speed and we’re not doing the old shaped 512Kbps or 1500Kbps download speeds,” he said. “They’re all as fast as the DSLAM port will run it.”

But not all Internode customers will be able to get ADSL 2 speeds [20Mbps download/1Mbps upload] because the service will be provided using Telstra equipment, rather than Internode or Optus hardware.

“Telstra has an older generation of DSLAM equipment, especially out in RIMs, and those are limited to ADSL 1…it means the maximum speed you get out of them is 8Mbps down and 384Kbps up,” Kellett said. “On regular basis, we’ll sweep through those orders and ask Telstra to upgrade them to ADSL 2+ because it is gradually upgrading the network.

“The broad statistic I’ve heard from Telstra is that over 70 per cent of its network is getting ADSL 2+ and a bit over 25 per cent get the old ADSL 1.”

Affected Internode customers will be contacted over the next month with offers to upgrade but they will be allowed to keep their old plans. All new customers must pick from the new offerings.

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