i was reading an article which said it costs isps less than us10cents which is nz19cents per gigabyte for international data using the southern cross cable. the article also says costs could be higher if the isp signed a contract when the price was higher and their contract hasn't expired yet.
anyone know if telecom or any nz isp has a contract with the southern cross cable with the lower 19 cent per gig price? if this is the case, then i know an isp has to make a profit so lets say an isp wanted to make a 3 dollar profit per gig downloaded by it's users which would make the price $3.19 per gb. if this was the case then an isp could have these plans:
$31.90 for a 10gb plan
$63.80 for a 20gb plan
$127.60 for a 40gb plan
i compared these to telecom's broadband plans which are:
$49.95 for a 10gb plan. so it seems telecom may be charging $18.05 more than it needs to.
$59.95 for a 20gb plan. telecom may be losing $3.85 on this plan, so it cheaper than the price it's buying data for.
$79.95 for a 40gb plan. telecom may be losing $47.65 on this plan.
or telecom could be counting on the fact that most customers probably wont use that much data. but good on telecom for it's $59.95 and $79.95 plans. although the 40gb plan has an excess charge of 2c/MB which seems very overpriced when 19 cents may buy a gig.
however as i said above, the $49.95 10gig plan may be $18.05 overpriced. for $49.95 the plan should have a 15gig cap, not a 10gig cap.
i wonder if anyone can just ringup the southern cross cable company and just say u want to start an isp and ask how much a gig of international data costs. anyone know if the commerce commission has done this?
article that says us10 cents per gig:
http://www.businessday.co.nz/industries/telco_it/4748203
article that says $10 for 30gig:
http://www.stuff.co.nz/4560779a28.html