Telecom cried that it was going to go the fastest it could, uncapped (except during peak times). However, a major botch up to the traffic shaping as meant everything, including normal web traffic, was being shaped. Today Telecom has had to refund 60,000 customers $7.5 to 8.8 million. The credit for those who have been on the plan since the beginning (December) will get up to $160 back.

Telecom are no longer accepting new sign ups to the plan until an internal technical review is completed.

The plan was launched in December in response to being forced to uncap bandwidth. It provided a list of services that were going to be shaped, including peer to peer (P2P) applications.

This is going to hit them where it hurts.

• Read the press release