By: MarkJ - 26 July, 2010 (3:00 AM) - Score: 9679 - Fixed Line Broadband
The recently re-launched ISP Demon Internet (THUS Group, Cable & Wireless) has been forced to impose a Fair Usage Policy (FUP) on its new "unlimited" business broadband packages. The provider claims that it has recently seen a big increase in the amount of heavy users, which are forcing it to make "tough decisions to protect our network and quality of service".The new services, which were only launched at the end of last month (here), originally pledged to end confusion around FUP's and advertised speeds. Demon then proceeded to outline a series of business broadband packages that all featured "unlimited" usage.
Demon Internet Statement
We’ve recently seen quite an increase in the amount of heavy users on our business broadband products, and as a result we can’t continue to support completely unlimited use on these services so we need to introduce a Fair Usage Policy with peak hour usage restrictions.
Less than 0.5% of existing business broadband customers are heavy users and use in excess of the limits we are setting, so the majority of existing customers will not have to worry, and if you’re a new customer thinking of signing up you’ll probably be unaffected by the new limits too.
As you know we believe it’s important to be open, honest and very clear about usage policies, so the new Business Broadband Fair Usage Policy is outlined below:
BUSINESS 2+ / 2+ PRO
200GB during peak hours (8AM to Midnight) measured over a rolling 30 day period
Unlimited overnight allowance
BUSINESS 2000 / 4000 / 8000
100GB during peak hours (8AM to Midnight) measured over a rolling 30 day period
Unlimited overnight allowance
We’ve recently seen quite an increase in the amount of heavy users on our business broadband products, and as a result we can’t continue to support completely unlimited use on these services so we need to introduce a Fair Usage Policy with peak hour usage restrictions.
Less than 0.5% of existing business broadband customers are heavy users and use in excess of the limits we are setting, so the majority of existing customers will not have to worry, and if you’re a new customer thinking of signing up you’ll probably be unaffected by the new limits too.
As you know we believe it’s important to be open, honest and very clear about usage policies, so the new Business Broadband Fair Usage Policy is outlined below:
BUSINESS 2+ / 2+ PRO
200GB during peak hours (8AM to Midnight) measured over a rolling 30 day period
Unlimited overnight allowance
BUSINESS 2000 / 4000 / 8000
100GB during peak hours (8AM to Midnight) measured over a rolling 30 day period
Unlimited overnight allowance
To be fair Demon's allowances are quite flexible, especially with the Business 2+ (8Mbps downstream and 1Mbps upstream) package costing just £19 per month (24 month contract). Indeed 200GB during peak hours on such a cheap package could still leave them open to problems further down the line.
Demon will be monitoring usage immediately although the new FUP but won’t be enforced until the 30 days notice has ended. A usage tracker for Business Broadband is now available. When the policy is implemented a customer who exceeds the limits will be restricted to 128Kbps during peak hours.
UPDATE 27th July 2010
Clarification statement from Demon Internet follows.
Demon Internet Statement 2
Following our online announcement regarding the introduction of a Fair Usage Policy on our Demon Business Broadband services, we would like to clarify that this excludes the Demon Premier Broadband services referred to in our relaunch press release. The Demon Premier Broadband services will continue to have unlimited usage.
Here at Demon we are committed to being open, honest and clear about any usage policies, so details of this latest change to the business broadband services has been posted on our blog and we are also emailing customers to advise them of the new FUP.
We believe that the new usage limits, which only apply between 8am and midnight, are very generous and very fair. Less than 0.5% of our current business broadband customers are anywhere near these limits and we have launched a new usage tracker on www.demon.net so that customers can monitor and manage their usage.
Many so-called 'unlimited' products from competitors are actually limited, and many will have limits set below ours. We also intend to use our judgement to unrestrict customers if they hit the limits by accident (e.g.caused by a virus or unauthorised staff use), certainly for first offences. We are trying to be honest, and fair, and provide great business broadband services.
Following our online announcement regarding the introduction of a Fair Usage Policy on our Demon Business Broadband services, we would like to clarify that this excludes the Demon Premier Broadband services referred to in our relaunch press release. The Demon Premier Broadband services will continue to have unlimited usage.
Here at Demon we are committed to being open, honest and clear about any usage policies, so details of this latest change to the business broadband services has been posted on our blog and we are also emailing customers to advise them of the new FUP.
We believe that the new usage limits, which only apply between 8am and midnight, are very generous and very fair. Less than 0.5% of our current business broadband customers are anywhere near these limits and we have launched a new usage tracker on www.demon.net so that customers can monitor and manage their usage.
Many so-called 'unlimited' products from competitors are actually limited, and many will have limits set below ours. We also intend to use our judgement to unrestrict customers if they hit the limits by accident (e.g.caused by a virus or unauthorised staff use), certainly for first offences. We are trying to be honest, and fair, and provide great business broadband services.
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Comments: 1
Well-Travelled ISP PersonPosted: 26 July, 2010 - 11:37 AM
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So another ISP finally realises that the "unlimited" business model is unsustainable.
It is surprising that one of the longest established ISP's in the UK even attempted to offer an unlimited service for such a crazy price. As speeds get faster, content becomes richer requiring more bandwidth. Bandwidth IS NOT FREE !!!!
If what Demon says is correct, they are blaming 0.5% of their base for ruining it for the rest, that’s 465 end users. That’s not a lot of people to cause a £multi-million company to change its business model. What would happen if the remaining 99.95% decided to utilise their “unlimited” service to its full potential ?
It just shows that usage limits are important and anybody requiring a stable service should completely avoid any provider who is looking to overload their service by offering "unlimited" usage.
Whilst applications such as P2P, Youtube & iPlayer exist, the "unlimited" business model will never work for an ISP. It will be only a matter of time before their costs exceed their revenue or they have to drastically move the goal posts.
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