Australia getting more broadband for its buck
Posted in: Internet Use/New Technologies at 31/01/2008 14:23
Australian broadband users are getting more out of their Internet connections although prices have remained static, a report from the Internet Industry Association (IIA) has found.
"What our most recent survey found was that the prices haven't changed but the capacities of people's connections are increasing," Peter Coroneos, chief executive of the Internet Industry Association (IIA), said.
According to Coroneos, competition between ISPs is driving increased capacity: "Ours is one of the most competitive industries in Australia in terms of the number of players. We identified as many as 600 ISPs of all descriptions at year's end 2007."
Net user costs static but data quotas increase [news release]
Australian Net users are getting more internet use for the same money, according to research conducted for the Internet Industry Association.
Its most recent quarterly edition of the Spectrum / IIA Broadband Index tracks how competition developed through 2007.
The average cost per gigabyte has dropped as plans have become more competitive. The average cost of data was $80/gigabyte at start 2007 but fell to $52/gigabyte by Q4 2007.
A copy of the latest Spectrum Value Partners/IIA Index is available for download at
Competition is driving data caps up. This allows Australian households to access higher bandwidth applications (especially those with high video or audio content) without worrying about going over their monthly limit, Peter Coroneos, IIA's chief executive, said.
"It is great news for consumers that caps are being increased," Justin Jameson, Head of Spectrum Value Partner's Sydney office, said.
Mr Jameson said the market was most aggressive at speeds of more than 1.5Mbps, as ISPs compete for the next tranche of broadband customers." Looking back over last year's surveys, the Q4 report reinforces the need for customers to look at higher speed plans.
Competition at the top end of the market means that many customers on low speed plans will save money if they upgraded. For example, a user with 'Medium' data requirements would be better off selecting the best priced ADSL2+ 17Mbps plan (if available) than he or she would be with a lower speed cable or ADSL plan."
"A broader question from the research is what can be done to reduce the underlying cost of data in Australia." Peter Coroneos, chief executive of IIA, said.
"Sixty-six to 80 percent of data is imported from overseas, mainly the US, and these costs must be passed on to end users,' Coroneos said.
"We applaud Pipe Networks' new overseas cable announced on Monday. This is a competitive initiative to ensure Australia's broadband infrastructure has the capacity to make high end usage more affordable to all Australians."