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Re: [SLUG] OT - Telstra to cap flat rate ADSL & Cable plans at3Gb/month



On Thu, 7 Jun 2001, Matthew Moor wrote:

> 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.

{Opening a whole can of off topic worms, so this'll be my last word on the
subject}

You should investigate the concept of cross-subsidisation.

The reason the Australian bush has such a high quality telephone network
for what are realistically low prices is simply because the extra money
that is spent in high density areas is used to seed the lower density
areas and keep the costs down.

I could go into the topic in more detail, but fukkit - I'm not going to
defend Telstra, only show that I understand the concept they use as an
argument.

DaZZa


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