Download quotas, not speeds, are the next battleground in Australian broadband, with iiNet and Internode predicting quota increases.
Australian ISPs are being urged to consider bigger download limits in the order of 100GB to 200GB in the wake of new cheaper access to overseas data.
The new link, launched yesterday by PIPE Networks, will provide overseas Internet links up to "50% cheaper" than the price currently paid by some ISPs. The most likely effect will be new bigger download quotas, not speed, with several ISPs including iiNet and Internode considering the option.
The savings should allow "true unlimited" broadband in Australia, predicted executive director Lloyd Ernst. "At the moment ISPs tend top see 20GB plans as unlimited," he told PCA.
"We want to see 100GB or 200GB. That's getting close to the realms of what you need when you start to do high definition video, and high definition games," Ernst said.
Internode managing director Simon Hackett confirmed the likelihood of increased quota limits, saying the ISP expects to expand download quota for the same monthly price. "Since the average monthly downloads for our customers continue to rise steadily, the arrival of [the PIPE link] in mid 2009 will be excellent timing," he said.
iiNet is also tipping improved download limits, rather than speed, with CTO Greg Bader telling us larger quotas were "definitely on the horizon". "Our position is access speeds aren’t an issue. But if you look at all the plans in Australia, they’re based around quota," he said.
The PIPE link, called the Pipe Pacific Cable 1, will link Australia to the United States and Asia when it is completed in 2009. It will offer ISPs an alternative to existing three overseas links, including Telstra’s Australia-Japan cable.
Despite government predictions of faster broadband as a result of the Pipe Pacific Cable 1, iiNet disagreed that broadband users wanted faster speeds. Bader said that a significant proportion of iiNet customers were happy to stay with broadband plans three or four years old.
"Many don’t actively look to upgrade to newer plans. Evidence of this is that we have a portion of customers, that whilst they have access to high speed ADSL (at the $49/59 marks), they are happy to stay on older legacy type plans ($39/49) at for example 512kb."
Bader was also critical of proposed plans to build a fast national fibre network, arguing it will drive prices up. "To be honest the worst thing that can happen now is a fibre to the node plan. Under a unilateral fibre to the node model, you’re talking anywhere between an eight and ten billion dollar investment. You can expect prices to double or triple."
"I certainly agree we need fibre to the node in some areas, but for large parts of metro areas, fibre to the node will offer minimal gain. 95% of metro areas today have access to reasonable speed broadband. It’s the five to ten per cent in outlying areas or blackspots that need to be fixed up."
"I’m concerned the pricing models on this need to be very clear and upfront before we go ahead with this. I’m concerned that prices will go through the roof."