Analysis of Optus ‘yes Fusion $109 versus iiNet Home 2 with Phone 1

Highlights of Optus ‘yes’ Fusion $109

Gathering historical data

Current iiNet costs

Options for minimising current costs

Option 1 - Make international through Fone2

Option 2 - Purchase Optus World Saver Plus for $10 per month

Facts to consider in favour of iiNet

Facts to consider in favour of Optus

Conclusions

Recommendations

References


Highlights of Optus ‘yes’ Fusion $109

https://www.optus.com.au/shop/broadband/fusion/broadbandplan/109 features 500 GB of internet data, unlimited local calls, unlimited national calls and unlimited Australian mobile calls.

Gathering historical data

Average call cost was determined for local calls, national calls, mobile calls and international calls for a period of 12 months. The results are in the table below.  

Local calls

$1.38

National calls

$0.00

Mobile calls

$12.88

International calls

$115.48

$129.74

It appears that the benefits of Optus ‘yes’ Fusion $109 does not have any impact on cost savings due to the fact that majority of the call costs are for international calls.

Current iiNet costs

Home 2

$49.95

Netphone2

$9.95

Phone 1

$29.95

$89.85

Considering that on average, total call cost is $129.74, the cost for telecommunication come to $219.59 per month.


Options for minimising current costs

Option 1 - Make international through Fone2

Assuming that $50 per month was spent on Fone2 for international calls, the total cost for telecommunication can be reduced [1] to $154.11.

This is a monthly saving of $65.48 compared to current costs.

Option 2 - Purchase Optus World Saver Plus for $10 per month

By switching to Optus ‘yes’ Fusion $109 and upgrading to World Saver Plus for $10 per month, for $119 altogether per month, unlimited local calls, unlimited national calls, unlimited mobile calls and X cents per minute international calls to Country X can be achieved. It is important to mention that only calls to landlines are allowed under World Saver Plus rates.

To make the same amount of calls under Option 1, it only requires further $31.25. The revised telecommunication cost satisfying requirements of Option 1 is $150.25 per month.

This is a monthly saving of $69.34 compared to current costs.

Facts to consider in favour of iiNet

Optus has applied to participate in the Government's filtering trial [4]. This means certain sites can be blocked as per Optus’ will. iiNet has not showed any willingness to consider this trial.

Facts to consider in favour of Optus

Optus provides 500 GB of data compared to iiNet’s 200 GB.

Optus provides unlimited mobile calls to Australian numbers. iiNet does not offer unlimited mobile calls to Australian numbers.

Conclusions

The monthly saving of Option 2 compared to Option 1 is only $3.86.

Fone2 provides the flexibility of calling to landlines as well as mobiles in Country X at a cheaper rate.

Recommendations

It is recommended to continue with Option 1 for another 12 months and reconsider available options.

References

[1] Call costs calculation https://docs.google.com/spreadsheet/ccc?key=0Asbn69SjUbBNdFNvYklTeEM2RC1iTlRraVlCcEd6Tmc#gid=5

[2] World Saver Plus call rates http://optus.custhelp.com/ci/fattach/get/103875/1314854054/redirect/1/session/L2F2LzEvdGltZS8xMzM1MTg3MDQ4L3NpZC9kTTZybm1Xaw==

[3] Chat with Optus staff regarding World Saver Plus https://docs.google.com/file/d/0B0ywocRL7KCFX1Zsdnh0WUZrMVk/edit

[4] Internet Content Regulations

http://www.optus.com.au/aboutoptus/About+Optus/Legal+%26+Regulatory/Regulatory/Internet+Content+Regulations

[5] Netgear ADSL2+ MODEM ROUTER DG834

http://www.netgear.com.au/home/products/wired-routers-and-modems/wired-routers/DG834.aspx#one