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Re: [SLUG] OT - Telstra to cap flat rate ADSL & Cable plans at 3Gb/month



You fail to consider the distribution of the australian population. Most of
us are on the coast, which has quite a high population density. Particularly
in Sydney, I would assume it would not be particularly expensive to run a
cheaper high speed network; Especially given that the SCC is landed here,
amongst other high capacity cables. I would argue that the reason telstra
does not turn a profit in broadband is because so few can afford the
service, ISPs in particular.

----- Original Message -----
From: "Jon Austin" <admin@nospam.flux.net.au>
To: <slug@nospam.slug.org.au>
Sent: Thursday, June 07, 2001 2:11 PM
Subject: Re: [SLUG] OT - Telstra to cap flat rate ADSL & Cable plans at
3Gb/month


[snip]

: To say that population is not an issue is just silly. Look at any product
or
: service in any market; it will usually be cheaper in bigger countries such
: as the USA. Economies of scale, supply vs. demand and all that other
: economic stuff...
:
: Thinking about it logically, the price difference might be explained like
: this.
: It is very expensive to roll out a national network. DSLAM's, frame relay
: tails etc. is all very expensive. Australia has about 3.5 people per
square
: km compared with NZ which has about 14 people per square km. So in
: NZ, the carriers can geographically reach ~5 times the number of people
: (proportionally). But in Australia most of the national population is
: focused
: in the capital cities, so I guess that throws that argument out the
window.
: =)

[snip]


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