Editorial
IHUG... Bastards Or Businessmen?
Several months ago, IHUG threw a cat amongst the pigeons by announcing that users of its SatNet high-speed Internet service would no longer have the ability to download "unlimited" amounts of data for a single flat monthly fee.

The rationale behind this move was that a small percentage of the users were creating a disproportional level of load on the service -- to the extent that other users were adversely affected.

Well IHUG have now made a similar move in respect to their Diamond Account flat rate dial-up Net access plan.

Until this week, IHUG had promoted the plan as "Unlimited Internet" -- which it was. The only practical restriction being that anyone online for more than 3 hours in a stretch during peak times would get disconnected -- but would then be able dial back in if they wanted.

According to IHUG, the same situation as forced the SatNet changes has finally caught up with their Diamond Accounts -- and the few people who spend more than 350 hours per month online are having an impact which is disproportionately high.

To address the problem, IHUG says that anyone staying online for more than 350 hours per month -- about 12 hours per day, will no longer qualify for a flat-rate Diamond account and will instead be shifted to a $199/month permanent-connect account.

So... do those who have protested very loudly have a point when they claim that this is unfair and unreasonable?

If you're one of the 99% of users who doesn't fit the "power user" description then I guess you'll be happy with IHUG's decision because it means you'll find it easier to get online when you want and, once you do, things could even run a little faster.

Opponents of the move have claimed that this is just another way for IHUG to boost their profits and cut costs -- and you know -- they're probably dead right.

But isn't that the whole idea of running a business?

Don't IHUG have a right to expect a reasonable return on their investment?

Do XTRA, ClearNet, or indeed any other NZ ISPs offer a $40/month dial-up account that has absolutely no restrictions on the amount of time you spend online?

Seems to me that they all have some kind of limitation so as to ensure that a few power-users don't unnecessarily raise the price of Net access for everyone else.

I gather that IHUG have amended their claims for the Diamond Account and no longer claim it offers "endless Internet" and I don't think we can hit them too hard for simply responding to the need to maintain reasonable profit margins and ensure that the majority of users get a fair deal.

I guess the bottom line is that if you're a power-user who's unhappy with IHUG's changes then you can always vote with your wallet -- unfortunately I think you may find it difficult to locate another ISP that's prepared to offer you anything better.

A few users may have had their noses put out of joint by IHUG's decision -- but perhaps they should just be thankful that they had such a deal for so long and appreciate the fact that no ISP can be expected to operate as a charity.

Disclosure:
I have ISP accounts with 2Day.com, IHUG and XTRA. I have multiple accounts for reasons of redundancy and so as to allow me to retain maximum objectivity when reporting on related issues.

I also pay significantly more than $199 per month for a 24/7 connection to the Net!

Aardvark Reviews... IHUG's StarNet Trade & Exchange www.listener.co.nz (Updated 26 Mar) MS Image Composer Sony Mavica FD7 Epson 600 iomega ZIP