Chello backtracks on price cut

Despite advertising price cuts for fast internet service in its subscriber magazine and offering further details to customers who called in, Telstra Saturn now says it has put the offer on hold.

Despite advertising price cuts for fast internet service in its subscriber magazine and offering further details to customers who called in, Telstra Saturn now says it has put the offer on hold.

The current issue of the Saturn magazine advertises a new rate for the Chello 512Kbit/s service of $49.95 monthly plus $17 modem rental (it currently charges $73 plus $17).

Customers who called the company yesterday were told that the new price was effective immediately, but would be accompanied by a 2Gb monthly traffic cap. As it does elsewhere in the world, Chello currently offers its 512Kb service on a flat rate model.

But a Telstra Saturn spokesperson said today that the information advertised "does not relate to the product we currently have in the marketplace". The company had been planning the product but decided to withdraw it at the last moment and now had no firm plans for a price cut.

It may be that Telstra Saturn's plans for a price cut and a traffic cap were undone by Ihug's announcement yesterday of its return to a flat-rate model with the new $49.95 per month, 256Kbit/s Ultra Lite product.

There is still some cheer for Telstra Saturn customers, however. The other ISP offering service through the Telstra Saturn cable network, Paradise.Net, will from Tuesday be offering a $79.95 monthly price on its 512Kbit/s service (a cut of $10) and doubling its international traffic cap to 1Gb.

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