SW Sponsored Content Left 3 160x1200

SW Sponsored Content Right 3 160x1200

SW Sponsored Top Banner 3 705x108

Wednesday, 14 September 2011 11:20

Kiwi ISPs bridging broadband gap with Australia

By

New Zealand, a place where broadband prices have been even more costly than in Australia, is fast catching up to its larger neighbour in terms of data value for money and now threatens to push ahead, according to a new study.

 

A new analysis published this week by Market Clarity found that the New Zealand broadband market has become more competitive in the past year, and in one case is even offering better value (in terms of price per GB) than is available in the larger Australian market.

The Market Clarity analysis, published in Closing the Trans-Tasman Broadband Value Gap: Comparing Prices in Australia and New Zealand, identified big shifts in both markets, and emerging evidence that New Zealand ISPs are closing the gap that separates them from the Australian industry.

For example, while "Terabyte" plans were unheard-of in the New Zealand market as recently as June 2010, this year has seen the first launches of high-capacity offerings.

"Until recently, New Zealanders have had cause to complain about the value offered by ISPs," said Market Clarity CEO Shara Evans. "While plan prices were broadly in line with what's available in Australia, plan allowances have been much lower in New Zealand."

However, Ms Evans noted that in both countries, the greatest value (in terms of volume allowances) is generally only available to users paying higher monthly subscription prices.

"Customers of 'budget' plans in New Zealand still fare poorly compared to customers in Australia," Ms Evans said. "For example, for A$29.99 per month, an Australian customer is offered a monthly allowance of 20 GB, while a New Zealand customer paying NZ$20 per month receives an allowance of just 1 GB."

Moreover, "premium" plans in Australia - with very large data allowances - are generally cheaper than in New Zealand. While the most expensive plan Market Clarity identified in the Australian sample in 2011 was $139.99 (a 1.1 TB plan), New Zealand's most expensive plan cost NZ$315 per month and brought with it a data allowance of just 330 GB.

The good news is that the median price per GB of data allowance is falling in both countries, albeit more quickly in Australia.

"The price of broadband services reflects the many and complex cost inputs to an ISP's business model," Ms Evans noted. "Regulated costs, wholesale broadband prices, backhaul costs, Internet transit costs, market scale and competition all feed into the cost structures that exist in any market.

"However, I would expect that as broadband affordability continues to improve in New Zealand, higher-capacity services will become more popular among users, and competitive pressure will give users greater choice of higher-capacity services at more affordable prices."

Closing the Trans-Tasman Broadband Value Gap: Comparing Prices in Australia and New Zealand, analysed close to 200 broadband plans offered by 11 leading ISPs in Australia and New Zealand. This free report can be downloaded here.


Subscribe to ITWIRE UPDATE Newsletter here

Active Vs. Passive DWDM Solutions

An active approach to your growing optical transport network & connectivity needs.

Building dark fibre network infrastructure using WDM technology used to be considered a complex challenge that only carriers have the means to implement.

This has led many enterprises to build passive networks, which are inferior in quality and ultimately limit their future growth.

Why are passive solutions considered inferior? And what makes active solutions great?

Read more about these two solutions, and how PacketLight fits into all this.

CLICK HERE!

WEBINAR INVITE 8th & 10th September: 5G Performing At The Edge

Don't miss the only 5G and edge performance-focused event in the industry!

Edge computing will play a critical part within digital transformation initiatives across every industry sector. It promises operational speed and efficiency, improved customer service, and reduced operational costs.

This coupled with the new capabilities 5G brings opens up huge opportunities for both network operators and enterprise organisations.

But these technologies will only reach their full potential with assured delivery and performance – with a trust model in place.

With this in mind, we are pleased to announce a two-part digital event, sponsored by Accedian, on the 8th & 10th of September titled 5G: Performing at the Edge.

REGISTER HERE!

BACK TO HOME PAGE
Stan Beer

 

Stan Beer co-founded iTWire in 2005. With 30 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications.

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News