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2004 Broadband Price War - Small business wins the first battle

  • 25 May, 2004 10:59

<p>Friday 21st May 2004 – Telsyte has just published a comprehensive pricing study of ADSL broadband Internet services in Australia. Telsyte is a leading Australian telecommunications research organisation. Telsyte regularly produces research reports that track the prices paid for Australian wholesale and business telecommunications services.</p>
<p>The new report, “Australian Broadband Price Wars: The Impact on ADSL Service Pricing” covers the range of ADSL service tariffs available to both residential and business clients in April 2004. The report analyses the changes in prices that have occurred as the result of the recently initiated ADSL price war, which commenced in February 2004.</p>
<p>Overall, the report shows that ADSL prices have decreased between the start of the Broadband price war (Feb 2004) and April 2004. On average, the median price of an SME ADSL plan has decreased by 17.22%, while the median price of a residential ADSL plan has decreased by 0.79%.</p>
<p>Shara Evans, Telsyte’s Managing Director said “ADSL is a pricing minefield. The advertising for residential broadband products makes them look cheap, but you can really lose your shirt by rushing to sign onto a plan with low usage allowances.”</p>
<p>ADSL bandwidth charges are often complex. Most residential users currently sign onto usage-based plans with low monthly access fees.</p>
<p>In April 2004, 256 Kbps/64 Kbps services were the most widely advertised ADSL residential plans. Despite intense competition for this type of service, and low advertised monthly prices, the actual monthly costs for these services vary enormously.</p>
<p>The pricing information in the report for April 2004 shows that while the base price for a 256 Kbps/64 Kbps residential ADSL service starts at $19.95 including GST, once you add a typical 500 MB of monthly usage the lowest monthly cost was $29.95 including GST, with the average price being $73.30 including GST per month. For exactly the same service and usage, the highest cost plan (base price, plus excess usage fees) in the market was $519.95 including GST per month.</p>
<p>For 256 Kbps/64 Kbps residential ADSL services including 1000 MB of monthly usage, in April 2004 the lowest monthly cost was $29.95 including GST, with the average price being $108.27 including GST per month. For exactly the same service and usage, the highest cost plan (base price, plus excess usage fees) in the market was a staggering $1014.95 including GST per month.</p>
<p>Shara Evans continued, “Usage based ADSL plans have a real sting in the tail. Many people underestimate how quickly they will use their quotas. For many typical plans, simply downloading a few security patches and reading your emails will be enough to use up your quota. Unless you have selected a “slow motion” unlimited plan, expect to pay an extra $50 to $100 of usage per month.”</p>
<p>The 42-page report “Australian Broadband Price Wars: The Impact on ADSL Service Pricing” contains 39 detailed pricing tables, and 24 graphs.</p>
<p>The report shows a broad range of typical tariffs. Metropolitan and Regional pricing tables are included. Residential and SME ADSL plans are analysed separately. Pricing tables show monthly costs by Industry Low, Median, Average, Trim Mean, and Highest monthly price for each ADSL service.</p>
<p>This comprehensive report makes it very easy for anybody to quickly see the range of ADSL pricing available in the market, and to determine whether they are paying too much. It can also be used by organisations looking to build a business case for migrating their networks to broadband technologies.</p>
<p>The report costs $550 including GST, and further information is available at http://www.telsyte.com.au/market/adsl_price_wars.htm.</p>
<p>About Telsyte</p>
<p>Telsyte (www.telsyte.com.au) is an Australian based market research organisation that specialises in broadband technologies, services and metrics. In December 2002, Telsyte merged its operations with leading independent Telecommunications consulting firm Gibson Quai Pty Ltd (www.gibsonquai.com.au). Gibson Quai is a division of UXC www.uxc.com.au which is listed on the Australian Stock Exchange.</p>
<p>Media Contact
Sebastian Rice – Silverspan
02 9959 1991
seb@silverspan.com</p>
<p>Photography of Shara is available.
Shara is also available for interviews and further comment.</p>

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