Aardvark Daily
Xtra drops Net access charges
Copyright © 1997 to Bruce Simpson, syndication rights available
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17 Dec 1997

Telecom's Xtra, New Zealand's largest Internet service provider has announced a price cut of up to 30% for "frequent users".

The new pricing plan, called Advance20, allows customers to purchase a minimum commitment of 20 hours per month of Net access for $35 (including GST) per month to produce an effective rate of $1.75 per hour. After the 20 hours, the standard rate of $2.50 per hour (local calling) or $4.95 per hour (0800 access) applies.

The plan appears to target 0800 users who regularly spend more than 7 hours per month online and local-call users who use more than 14 hours.

When Xtra first introduced its Internet service they were strongly criticised by a number of other ISPs for selling at below cost and there was much speculation that their "cut-throat pricing" would undermine the economic viability of smaller players.

A ClearNet spokesperson declined to comment when asked whether Clear would be adjusting its prices to compete with this new offering.

Existing Xtra subscribers can switch to the new plan through an form on the Xtra site.


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