Exetel moves to terminate unprofitable accounts

ISP tell unprofitable customers to move on

Australian ISP Exetel has moved to terminate a number of unprofitable accounts, asking some users of its broadband service to move to another provider. In addition, according to a newsletter sent to customers yesterday, the "off-peak" period, which does not count towards an accountholder's main usage quota, will be cut from 12 hours to six for new customers and will no longer be unlimited.

The ISP will also advise "500 or so" customers that it is "unable to continue to provide internet services to them and we are asking them to move to another provider". This is due to Exetel attracting "too many customers who download very, very large amounts of data using the '12 hour period'". This has allegedly resulted in the ISP losing money on a number of accounts, including "one single user costing Exetel a loss of over $600.00 in a single month and more that 300 users costing us between $30 and well over $200.00 each in the Month of April and then repeating that sort of usage in May".

“It was entirely our choice to offer the opportunities that caused those losses which amounted to close to $A500,000 in both April and May,” the ISP revealed in its newsletter.

Last week, on the Exetel sub-forum at the Whirlpool broadband discussion site, user SAN_1980 wrote that they had received a termination e-mail from Exetel that said the ISP was terminating their account because "they are not making any profit by providing the service to me". 'SAN_1980' was on a 30GB/60GB (off-peak) Naked ADSL2+ plan and "was using almost full quota because that was what they offered me to use".

Whirlpool user 'kilotango' posted that Exetel "must be the first company that does not want my business", after receiving an e-mail from the ISP instructing kilotango to find a new service provider within 30 days.

In April Exetel said it was close to introducing unlimited broadband plans.

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Kevin Cheng

PC World
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