Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
According to Kellet, the practice of shaping peer-to-peer traffic was likely to be more prevalent among smaller ISPs that could not afford the larger and more economic pipes to the USA.
Internode's price hikes also reverse a long running trend for broadband prices to fall, a fact which Internode acknowledges, saying: "In the last few years, the underlying cost of network capacity - especially international circuit capacity - has fallen substantially in real terms. This has allowed Internode to pass on cost savings to our customers...in anticipation that these improvements would continue to occur."
It adds: "We anticipate that future changes in the supply marketplace in the next 12-24 months will allow the underlying cost of network capacity (especially international capacity) to start improving again, as new capacity comes on-stream at more competitive price points. But in the meantime, the supply side market cost has plateaued - while customer resource demands have not."
The high cost of international capacity was the main driver behind Pipe Networks' announcement of a plan to build it own international fibre link to Guam, and Telstra has also announced plans for its own cable to the US, to break the monopoly presently held by Southern Cross on a direct Australia-US link. Pipe said earlier this year that it expected to make a final decision in May on whether to go ahead with the project, but no announcement has yet been made.
The increases announced by Internode do not apply to business grade high usage plans but only to residential and SOHO plans. Worst affected are the HOME-1500-Power80 & HOME-Extreme-Elite, SOHO-1500-Power90 & SOHO-High-Power90 plans all of which will be hit with a $40 per month price increase.
The HOME-1500-Power80 plans is a 1500/256, 80Gbyte plan that presently costs $159.95 per month. The HOME-Extreme-Elite plan also offers 80Gbytes but via ADSL2+. It presently costs $149.95 per month. The SOHO-1500-Power90 and SOHO-High-Power90 are the equivalents for SOHO users but with 90 instead of 80Gbps and costing $179.95 and $169.95 per month respectively.
Price rises, however are not confined to the top of the scale. Customers of the HOME-512-Value ($54.95 & 20Gb) , HOME-1500-Power10 ($54.95 & 10Gb) , SOHO-512-Starter ($64.95 with 10Gb), SOHO-512-Standard ($74.95 & 20Gb) SOHO-1500-Power10 ($74.95 & 10Gb) will be hit with a $5 per month increase.
Also, the $39.95 per month HOME-512-Starter plan has had its download quota cut from 8Gb to 5Gb per month. Internode has also introduced a number of new plans to give users more flexibility in matching their requirements with their budget.
The changes will take effect for existing customers from 1st July 2007 but will not be applied to regional customers under regional subsidy schemes or customers whose services are in a negotiated business services term agreement.
David Bass
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