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[Jul 8, 2003] Telstra Web Hosting Under Fire

By James Pearce, ZDNet Australia

Telstra's latest Web hosting offering has come under fire from a competitor for its claims to target small to medium enterprises with "low-cost" Web hosting.

Michael Farrell, managing director at Hostway, told ZDNet Australia he was surprised that Telstra had pitched their latest Web hosting plans as being low-cost. "It's at the high end of the market for what they offer," he said. "I object to the way they're positioning their place in the market as the champion of SMEs," said Farrell, adding he didn't think Telstra understood the needs of the SME market. "Historically, they don't have a great track record for customer service and support," he said.

"When SMEs move into the [Web hosting] market for the first time they need a lot of handholding and support, because they often lack experience in that area," said Farrell.

Telstra spokesperson Kerrina Lawrence refuted the allegations, saying that Telstra's position as the largest ISP in Australia indicated a good level of customer service and support. Lawrence said the price of Telstra Web hosting was competitive given the plans were riding on the coat tails of the BigPond and Telstra brands, and the value and security provided by them.

"In terms of targeting the SME segment∑ the product price point is
competitive with similar offerings," said Lawrence, adding different companies offered different products.There are a number of Web hosting providers who offer very competitive plans and the customer should look at the provider not just by their brand, but by what they provide," said Farrell, saying price, reliability and the level of support offered should all be taken into account based on individual customer needs.

Farrell suspects Telstra is reselling WebCentral, since the plans are almost identical to those offered by WebCentral and one of its resellers, OzEmail. A small example of Web hosting solutions that provide similar features to Telstra's entry level plans follow:

Provider Web Space Included Data Transfer Emails Price
Telstra
20 MB
500 MB
10
AU$38 / month
OzEmail
20 MB
500 MB
10
AU$38 / month
WebCentral
20 MB
500 MB
10
AU$38 / month
Hostway
50 MB
3,000 MB
10
AU$27.95 / month
Ilisys
20 MB
1,000 MB
5
AU$20.82 / month
NetRegistry
35 MB
1,000 MB
5
AU$33 / month
Conexim
25 MB
2,000 MB
10
$22 / month
Host1
100 MB
2,000 MB
10
$31.95 / month
Cheap Website Hosting
25 MB
2,000 MB
10
US$4 / month

 

 


About Hostway
Hostway Corporation is a provider of award-winning Web hosting services and tools, supported by superior customer service. Working primarily with small- and medium-sized businesses, Hostway provides the best of hosting technology with innovative online tools to help customers broaden their reach and grow their business. Hostway offers a wide range of shared and dedicated server plans to partner with their customers – from the launch of a Web site through every stage of online growth.


Founded in 1996, the Chicago-based company supports more than 100,000 Web sites worldwide and facilitates millions of dollars in e-commerce transactions each month. Hostway expanded its global reach in 2000 by opening an office in Korea and again in 2001 with the opening of a London office. Hostway is a private company, has posted a profit every quarter since its inception and does not rely on outside capital.


For more information on Hostway Corporation please visit www.hostway.com.au or
call 1-888-290-5170.