ISP Prices Continue To Tumble, But Only Just

Good news everybody! We're paying less for ISP access than we used to. Bad news, everybody! The rate of price decline is slowing down, pointing to a lack of overall competition.

Image: Alan Levine / Flickr, licensed under Creative Commons 2.0

ITNews reports on the ACCC's investigations into price changes in the telecommunications sector. It notes that while prices dropped 2.7 per cent last year, that's actually the smallest rate of change in the past decade.

We're all gravitating towards higher speed connections when we go for a fixed line connection, with a surge in connections from 24Mbps to 100Mbps — no doubt the NBN plays a role there. Mobile internet access is still the dominant form of access with 49 per cent of the 12 million Australian Internet subscribers using mobile compared to 38 per cent on DSL. (Of course, the figures aren't mutually exclusive; the vat majority of mobile broadband users would also have DSL, while the reverse isn't true.)

Australian internet access prices fall for fifth year [ITNews]


    "ISP Prices Continue To Gradually Decline"

    Pity the quality of Optus's cable network is declining faster than the prices.

      Really? I just got my optus cable on a month ago and its fast as, I get 100mbps on speed test and torrents etc fly, guess it depends on your area

    The rate of price decline is slowing down, pointing to a lack of overall competition.

    Or that it's just reached a point where fixed network costs and administration costs are no longer diminishing as broadband has reached saturation in the AU market.

    Prices have been falling because there have been new customers resulting in better economies of scale. It has reached a point where the main source of new broadband customers is 2nd connections (e.g. adsl customers also gets a mobile broadband device).

    Optus cable is great when I test the speed to their Melbourne server, try anything else like Optuszoo, Google or New York Times/The Guardian/Sky at about 8pm and I wish I kept my dialup.

    the dsl figure don't take into account families either. why would 4 people living in one house need 4 connections. where are they could easily each have more than one mobile connection

      True. At home we have one DSL connection but 3 mobile connections. At the office we have one DSL connection and about 80 mobile connections (not including private devices).

      And of course, all the devices are set to run off wifi when possible because it's much quicker and cheaper than mobile data.

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