Why is broadband so cheap in australia?!?!

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hamish225

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#83223 12-May-2011 16:51

Hello, so im wondering why its so cheap in Australia, they're on the same cable as us to america and all?

http://optus.com.au/store/phone/broadband_home_phone

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#468386 12-May-2011 17:05

Because we have another cable connecting us to them, so pretty much getting second hand data I think. Thats why they're building that new cable. Because theres not much competition with just one cable so they can kinda charge as they wish.

Jaxar

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#468395 12-May-2011 17:33

Bigger country better economies of scale?

Please note: I have a professional bias towards Vodafone.

hamish225

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#468396 12-May-2011 17:37

*moves to australia*

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heavenlywild

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#468399 12-May-2011 17:52

Haven't we talked about this many times already?

Basically more population = better infrastructure = more companies = more competition.

hairy1

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#468403 12-May-2011 18:04

It's all relative. My mates in the Cook Islands ask me why NZ broadband is so cheap!

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Zeon

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#468404 12-May-2011 18:09

Larger economies of scale over there. They also have other international cables. I'm not sure what the backhaul situation is either but its probably better than what we have with Telecom wholesale.

But TBH with the size of the datacaps and the costs of the plans we all know they are massively oversubscribing and assuming people don't use all their cap.

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SteveON

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#468409 12-May-2011 18:19

Yes - Lets all leave because the internet and telephone services are cheaper... Maybe our government should mandate that everyone do Accounting and Economics 101 papers.

Jaxar

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#468466 12-May-2011 20:03

SteveON: Yes - Lets all leave because the internet and telephone services are cheaper... Maybe our government should mandate that everyone do Accounting and Economics 101 papers.

Well you wouldn't call it a brain drain would you ;)

Please note: I have a professional bias towards Vodafone.

swalker5872

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#468471 12-May-2011 20:37

tardtasticx: Because we have another cable connecting us to them, so pretty much getting second hand data I think. Thats why they're building that new cable. Because theres not much competition with just one cable so they can kinda charge as they wish.

Sure I have seen something where Southern Cross Cable confirm that they have pegged their pricing for NZ/US to the same as that for their OZ/US, which means you could discount that as being a factor.

It is far more likely to be,

heavenlywild: Haven't we talked about this many times already?

Basically more population = better infrastructure = more companies = more competition.

Add to that the difference in population density, lots of the population in clumps as opposed to spread all over the country. It all helps.

old3eyes

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#468592 13-May-2011 08:53

I saw an ad on SBS last nite for TPG. 200Gig for $59.. Must be a catch somewhere..

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Old3eyes

SteveON

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#468640 13-May-2011 10:19

Jaxar:
SteveON: Yes - Lets all leave because the internet and telephone services are cheaper... Maybe our government should mandate that everyone do Accounting and Economics 101 papers.

Well you wouldn't call it a brain drain would you ;)

No I wouldn't. I believe that it would increase the IQ of both countries. XD

http://en.wikipedia.org/wiki/Economies_of_scale

1, NZ is small
2, NZ has a small population
3, NZ has a sparse population
4, NZ is at the arse of the world in the middle of no-where

This leads to high overall costs for any kind of infrastructure. Look at mobile and broadband; to service the same population you need to build/dig 2x the amount of costs to provide the same in a higher populated country. Add this with a lower dollar/lower buying power and there you have it. Add some noise in and profits; boom! I remember the days of being charged 50c a MB at high school when they got onto citylink and the entire school was on 10mb/s.

What is suggest is; to bugger off look at the world and realize that we are not affected in the politics of the rest of the world. Everybody loves us Kiwi's. Why? Because they want to live here out of the way. Anyway that's my view. But yeah Australia is a top destination as well.

/douche bag rant.

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Behodar

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#468661 13-May-2011 10:53

The funny thing is that a couple of my Australian friends are amazed by how cheap broadband is over here. I suppose it all depends which ISPs you look at, your individual data use, etc.

Ragnor

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#468801 13-May-2011 15:21

Aside from scale which is a huge factor, there is LLU which got started here way later than in Aussie and way way later than in Europe.

Unbundling of the local loop earlier would have meant we have more competition across the board in gear in exchanges/cabinets and backhaul.

bfginger

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#468917 13-May-2011 21:22

hairy1: It's all relative. My mates in the Cook Islands ask me why NZ broadband is so cheap!

Remember that button in Netscape to turn the loading of images off?
http://www.oyster.net.ck/about/index.php?about=idsl

hairy1

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#468923 13-May-2011 21:34

When I owned my internet cafe in Raro my staff had to permanently apologize for the 15 cents a minute we were charging....

My views (except when I am looking out their windows) are not those of my employer.

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