Thursday, 27 August 2009

Broadband caps in Australia

An article from the Sydney Morning Herald considers the usage caps in the Australian broadband market which are potentially holding back Internet growth in the country and are an outdated system which is virtually non-existent in other countries.

All the main ISPs in Australia price on a monthly usage cap, which for the current web applications of social networks, online videos and photos, are outdated and restrictive. In contrast, the article takes the example of some US Internet providers suggesting 250 gigabytes-a-month limit which led to consumer outrage, despite the fact only 0.003% of US broadband users exceed that level!

The article then considers the options for changing the pricing system in Australia and the potential opportunities for new providers to break the mould. It is possible that the new management of Telstra is more open to change but it's likely to take time and be linked with the national broadband network.

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