Southern Cross reduces international bandwidth costs

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timmmay

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Topic # 95954 17-Jan-2012 14:25

From http://www.stuff.co.nz/dominion-post/business/6268401/Rivalry-prompts-web-traffic-cost-drop

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.

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crackrdbycracku

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Reply # 569932 17-Jan-2012 14:38

timmmay: That move by the Southern Cross cable seems anti-competitive. Or maybe it's just smart.

I think that is often the same thing, depending on your point of view.

This will mean a flow on for us consumers right? My understanding is that one of the reasons all our internet connections both wired and wireless is the cost of moving data from the rest of the world to here.

Or I'm missing something?

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timmmay

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Reply # 569934 17-Jan-2012 14:39

They dropped the bandwidth cost by 50%, so from 12c/GB to 6c/GB, so I doubt it will make any difference to consumer pricing.

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Talkiet

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Reply # 569952 17-Jan-2012 15:07

timmmay: From http://www.stuff.co.nz/dominion-post/business/6268401/Rivalry-prompts-web-traffic-cost-drop

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.

See my comment (and other informative posts) in the other thread on this. The short version is this capacity expansion and price drop is nothing new. It has been happening regularly for over a decade.

It's awfully tempting to think that a price drop and capacity expansion is a conspiracy, but it's just BAU for Southern Cross.

Cheers - N

RunningMan

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Reply # 569953 17-Jan-2012 15:11

There seems to already be a thread on this

timmmay

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Reply # 569965 17-Jan-2012 15:23

Yeah probably worth killing this one. There are so many forums around here it's hard to work out where to put things sometimes, mostly because the forum list is so long.

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