Southern Cross Cable has slashed the price it charges to carry internet traffic to and from New Zealand by almost half, just hours after a controversial proposal for a rival trans-Tasman between Auckland and Sydney took a big step forward.
Marketing director Ross Pfeffer said Southern Cross had cut the price for carrying traffic to and from the United States and New Zealand and Australia by 44 per cent, to about 6 cents a gigabyte. The cut applies to capacity sold through new contracts.
TelstraClear cable charge about $1.50/GB when you go over your data cap don't they? That's a heck of a markup, given their base cost covers the cost of providing the service.
That move by the Southern Cross cable seems anti-competitive. Or maybe it's just smart.