Internode Increase Prices, Twice

Internode BannerI use Internode as my current Internet Service Provider, they have been reliable, cost effective and I have not had a single complaint. The day before yesterday they announced that there would be changes to their plans and pricing structure. I now have a complaint.

There has not been an increase or major changes to their offerings since I have been with Internode. Indeed there has not been a price increase for six years. I can appreciate that these things change and inevitably prices always increase. However in this instance it is the percentage of increase and the way in which they have gone about it that sticks in my neck.

The reasons that have been given for the price increases are that while offered line speeds have increase, the cost of provision has not decreased. In other words users have faster speeds, download more and the cost of providing that bandwidth has increased. Internode blame the heavy use of services such as YouTube and BitTorrent for this. I am not sure what they expected users to do. These services especially video are only really available to those on faster connections!  Therefore they have hit the high speed users more than the lower end plans. I presume they use the above for justification for this. They are the ones using the bandwidth so lets charge them the most.

So the price goes up. Which as far as I am concerned is fine. I can understand that if something costs more then you need to essentially cover that cost. For me this means an added cost of about $10 AU to my bill per month. Currently I am on 8000MB/384kB connection with a limit of 20 Gig down per month. I can cop the 10 bucks on the chin. But essentially I have been delt a double blow. My bandwidth has been halved to 10 Gig per month for the same price that I am paying now. The cost to increase to my current 20 Gig limit once the changes are in effect? 10 Bucks… Do you see it? This is not a 10 dollar increase, it is a 20 dollar increase. Because that is what it will cost to maintain my current service.

This was underhanded in my opinion. If you are going to increase my plan by 20 bucks then bloody say that. Don’t halve my service! Don’t tell me that most users don’t use their limit and don’t soften it by saying that you are offering 13 new plans to better suit my budget! This is a massive increase in cost to the end user both in bandwidth and cost. I assumed that maybe it would be 5 – 10 dollars per month, I was very wrong. Internode will loose customers having done this and there are a lot that are not happy. As the Whirlpool Forums, in which users have vented their displeasure is a testament to. There are those defending them as well but more that are trying to wrap their head around exactly what Internode were thinking.

As I said Internode are excellent, I don’t have a complaint about their service. Am I leaving? No, not for the moment, but I am looking at alternatives.

With the advent of the connected world, the increase demands of bandwidth for applications and web development with software technologies such as Ajax, Java and Flash, podcasting, on-line video and gaming this was inevitable. People are using the technology, they are utilizing that which the online universe has presented to them. They are using more bandwidth, they are consuming more resources. It was not like you could not see it coming. But this is only the beginning. The Internet is being programed for users that have the bandwidth to run it, not the other way around. In my opinion the thought that if you give users a faster speed they won’t actually consume more bandwidth was an oversight. Then to slug users that are using these services with a large increase and cripple their ability to use them due to reduced bandwidth limits was wrong.

I am not impressed Internode, at your lack of foresight, your logic, your increase in price and your reduction in my service. But as I said I have been happy with your service and I will give you but few chances and no, you are not a cat and there goes one…

Internode Homepage Screenshot

2 Responses to “Internode Increase Prices, Twice”

  1. Tony Says:

    Non-resident blogslut here.

    I am in an even worse situation as my rate hike is $40. I can probably afford but whether I should have to is the point. I am on a 8mbit/80gb plan and it’s expensive but it’s great to have.

    One of the best things about Internode is their reliability and you just know that when you get home your gonna be online and not have any issues.

    Oh well have to wait and see but the Whirlpool forums have been a fun read.

  2. Erik Says:

    To quote Devo, “It’s freedom of choice, it’s what you want!”


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