Informer 375: 27 June 2016

We’ve completed our internal review and have decided to retain amortisation for Basic VDSL connection with wiring installations.

What's happening?

In May, as part of a wider plan we proposed a number of changes to Basic VDSL that were designed to sharpen the offering, including reviewing the amortisation of connection with wiring installation charges.

We had a mixed response from customers regarding our proposal to withdraw amortisation for connection with wiring installations, which required us to complete a comprehensive internal business review.

The outcome of this review was to retain amortisation.

What's the detail?

Following on from the benefits of band plan 998, the connection only installation is a effective option for VDSL and the need for connection with wiring is less critical.

However, when a connection with wiring installation is required it can be a barrier for consumers based on the cost (currently $246.27). Retaining amortisation for connection with wiring is seen to reduce this barrier.

We are also conscious that for some customers the withdrawal of amortisation requires process changes and would impact their budget forecasts.

The proposed terms

• The amortisation of the connection with wiring installation charge for Basic VDSL will be via a separate $10.00 monthly uplift across a 24 month term
• If the connection does not remain with you for the 24 months, the remaining balance of the installation charge will be recovered at the time of the transaction (move address, transfer, change plan and disconnection). This will be calculated by the remaining number of months multiplied by the $10.00 monthly uplift e.g: connection is disconnected after 14 months, the remaining balance of 10 months for the installation charge (10 months multiplied by $10.00 = $100.00), will be applied at the time of the transaction
• We will remove the Basic VDSL wash-up.

Next steps
We’ll give you three months’ notice of the changes to the Basic VDSL Fact Sheet around removing the wash-up, 24 month term and clarifying the recovery of the balance of an amortised installation charge.

Who should I contact?

For more information please contact your Account Manager.