View Full Version : Broadband Pricing

09-01-2002, 11:50 AM
I know this is not a help question, but would be interest to know why is it that the pricing for broadband is so expensive in New Zealand. Having just arrived from the U.S I couldn't believe the pricing. It seems to me that someone is making a huge profit. In the U.S I could have a 256k DSL connection for US$14.00 per month with no restrictions. I would need to take a second mortage to be able to do the same here. Any comments would be welcomed.

09-01-2002, 12:08 PM
I would suggest a few factors would be involved in this.

1) Population. There are enough people in the US to make it worthwhile to have it cheaper.

2)Technology. Because of the population, the technology is already in the ground for broadband internet to be readily available to anyone. Its not quite available here yet.

3)Competition. The extreme competition between phone co's and ISPs etc. over there suggests a lowering of prices.

4)Demand. More people demand it in the US, so it makes it a more viable option and a more worthwhile investment. At the moment its not really worth it for the telco's to do it, cause the demand just isn't there *yet*.

That's my opinion :)

09-01-2002, 01:37 PM
Interesting comments however your comment regarding demand is a little hard to understand. Surely if there were cheaper pricing the demand would increase. It seems to me that anyone thinking about getting broadband is put off by the extreme cost. I still think someone is getting rich off the New Zealand broadband users. Thanks for your comments.

09-01-2002, 02:40 PM
It's not just the population ... it's the population density.

I'd guess that Joe had that price in a large city. New Zealand's total population is that of a medium US city, spread over the area of a (small) state.

Saturn have stopped (temporarily?) their recabling of Christchurch. When that job was finished is would cost about $2000 per house. That capital cost would require rather high charges (especially they would never get 100% connection).

This does not rule out the possibility that pricing is on the basis of 'what will the market bear?' or 'think of a number, then double it'.

09-01-2002, 04:39 PM
I don't think it is so bad for jetstart here.

Interesting though, I just took a look at changing down to jetstart, and the isp charges an extra $15 if I do that. So I save money, but they charge me to change down ($50), and my saving drops $15 per month.
Sod that.