Melbourne, Australia, May 20, 2005
BIG KAHUNA BROADBAND - IS TELSTRA SCARED OF BEING WIPED OUT
Melbourne, Australia, May 20, 2005 - What is Telstra afraid of? Despite being the largest ISP, Telstra has demanded that Primus stop advertising its new Big Kahuna broadband services for $5.95 per week, and has made other allegations regarding the Big Kahuna plan, which Primus totally rejects.
General Manager, Consumer, Bryan Yianakis, said Telstra’s reaction is concerning, given just how competitive the new Primus Big Kahuna plan really is.
"We believe it is the best and most affordable broadband plan on the market. After facing a wholesale price squeeze by Telstra which was the subject of intervention by the ACCC earlier this year, Primus now faces pressure from Telstra at the retail level. Primus will continue to aggressively compete against Telstra in order to deliver the best value plans to consumers."
The Primus Big Kahuna plan for $5.95 per week offers 500MB of downloads after which the speed may be reduced from 256k to lower speeds initially between 80k and 64k. Importantly, there is no limit above which customers will incur excess download charges. The product was developed as a direct result of feedback from customers wanting peace of mind in avoiding excess usage charges.
The terms of the Big Kahuna plan have been clearly communicated to customers, and Primus believes that its use of terminology is consistent with that employed by other ISPs.
Telstra has also raised objection to the advertised plan only being available to customers who bundle their telephone service with Primus. This is clearly stated in all the advertising. It is widely adopted by many other ISPs and is very attractive to customers who see clear advantages in having a bundled service.
In addition it comes with a half price ADSL modem, free installation, and zero set up fees on a 24-month contract.
Rather than cry foul, Telstra should demonstrate where it has a better value plan and let the market decide.
About Primus Telecom
Primus Telecom is Australia’s fourth largest fixed-line telecommunications carrier. The Company offers a comprehensive range of voice, data, Internet and web hosting products, servicing both residential and business sectors. The Primus network offers nationwide coverage through its own backbone network with facilities in 66 cities across Australia. The network enables the Company to provide nationwide long distance services and local call Internet access. Primus operates its own fibre network in the five major capital cities, delivering a range of business direct-connect services including ISDN, frame relay, ATM, telephone line and Broadband DSL, as well as telephone line and broadband DSL services direct to residential customers. Global connectivity is provided through an extensive voice, IP, wireless and ATM network operated by the parent company, United States-based Primus Telecommunications Group, Incorporated (NASDAQ: PRTL). Primus Australia news and information are available at the Company's Web site at www.primus.com.au