Why the G9 scheme won't work: Prices
G9 prices not what they seem
We have deciphered the SingTel Optus - G9 pricing "menu" for their high-speed broadband scheme for Australia. They claim wholesale high-speed broadband prices will be $20 to $50 a month.
But read the fine print.
What are G9’s prices?
After three years, the Singtel Optus - G9 prices will:
- rise with inflation
- rise to recover any “losses”
- rise to meet any shortfall in customers
- rise to pay the cost of confiscating Telstra’s network
- rise to recover increasing interest rates
- and the list goes on...
G9 and Telstra pricing compared
- The G9 is offering an inferior product. Their speeds and services don’t even match today’s products.
- Telstra’s FTTN plan will provide high-speed broadband with an
entry-level price of $59 per month, including monthly line rental. - Telstra’s prices are locked in for 14 years. They include a 14-year price guarantee, at all speeds from 512Kbps to 50Mbps.
- The G9 prices are only locked-in for only 3 years while the network is being built, after that they can go much much higher.
G9 puts the risk on consumers
- Basic telephone customers could be $720 million worse off under G9’s formula.
- Entry-level customers could be $1.3 billion worse off under G9’s formula.
Why are G9 prices uncertain?
- Telstra can lock in its prices for 14 years because we know what our costs are.
- In contrast, G9 don't understand their costs, so have had to put asterisks all over their prices.
We know the G9 does not have the capability to build a national FTTN network, and now we know their prices are a con.
What can you do?
Email the ACCC and the Minister for Communications, and tell them you’re not willing to accept an inferior product at potentially inflated prices.
Tell them you want the one company that has the proven capability to build a national FTTN network to be allowed to get on with the job.
Tell them you want Telstra.
Telstra has a broadband plan for Australia
Our plan: | Status: |
| To build the world’s fastest nationwide 3G wireless broadband network to reach 98% of the people of Australia | FINISHED |
| To build a new core IP network to serve business customers with the fastest, enhanced security network in Australia | FINISHED |
| To build the first phase of a FTTN network to deliver high-speed broadband to 50% of the homes and 60% of the businesses in Australia | READY TO GO |
Related media coverage:
Authorised by L McGregor, Telstra Corporation Limited, 242 Exhibition Street, Melbourne, VIC 3000