“It is always great to see the price of IRU???s (Indefeasible Rights of Use) dropping, as that will filter through to the wholesale market,” he told NBR.
“However this masks the fact that bandwidth costs per user are still actually increasing.”
“With lower marginal capacity cost we have reduced our prices to the US from both New Zealand and Australia by 44%”, says Pfeffer, “the third largest decline in our history. Often coinciding with capacity upgrades, price declines are not new for Southern Cross, having averaged over 21 per cent annually since 2001. This longstanding practice has promoted the increasing use of retail internet data with reducing cost”.
Pfeffer said “it’s particularly pleasing to see how ISP competition has resulted in big increases to retail data caps over the last year for both Australian and New Zealand internet users, and to see the retail cost of data continuing to fall. Our new initiatives are again designed to support this process as another step towards the new NBN and UFB environments”.
Hoorah!
Hamish MacEwan 