[LINK] Why Broadband Prices Haven't Decreased

Tom Koltai tomk at unwired.com.au
Wed Sep 15 09:50:34 EST 2010

> -----Original Message-----
> From: link-bounces at mailman.anu.edu.au 
> [mailto:link-bounces at mailman.anu.edu.au] On Behalf Of Kim Holburn
> Sent: Wednesday, 15 September 2010 8:21 AM
> To: Link list
> Subject: [LINK] Why Broadband Prices Haven't Decreased
> Although this is a US study, some of the findings and arguments have  
> bearing in Australia.
> Note particularly:
> > Meanwhile, once companies have installed the lines, their costs are
> > far below prices. "At that point, it becomes pure profit,
> http://insight.kellogg.northwestern.edu/index.php/Kellogg/arti
> cle/why_broadband_prices_havent_decreased

Whilst the article has considerable merit, actual broadband prices (on a
per bit/Mb/Gb level) in Australia have decreased considerably as we move
from a 30 GB (AVG) a month CAP towards the American concept of
net-neutral unmetered access.

The TPG acquisition of PIPE networks is facilitating a "value" war at
the ISP level heretofore unseen in Australia.
TPG "unlimited" actually is unlimited forcing even Telstra to
re-evaluate it's offerings and upgrade it's monthly allowances.

As consumers start to abandon the smaller ISP's (Telstra reseller's) we
will see another round of aggregation take place with Telstra then most
likely forced to buy TPG at market to get back it's former market
leadership position.

Of course if TPG can maintain their growth, (PPC-1 cable says they
can...) then we may see market forces in Australia turn TPG into
Australia's dominant data carrier.

...and of course, that's when the prices go up again.



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