Over the past 12 months, I have witnessed a drastic dop in prices of Internet access here in Australia. Combination of added capacity and market competition had lowered the prices and increased the monthly quota.
There are three ways to get an Internet connection in Australia, excluding a dial-up connection. You can get Internet through ADSL, cable, or wireless (through a 3G network, or through a limited WiMax network). Most of the connections are through ADSL, as cable installations are not very popular in Australian homes. Wireless connections are becoming more popular with recent drops in prices.
Internet connections are often purchased based on the amount of data that you are going to download a month. You can get a 10GB monthly plan, 30GB, 60Gb and various other quotas. Rarely will you get an unlimited plan, and if you do, it will cost you over $300/month.
Australia had only two submarine cables a year ago, and had added another submarine cable connection to the US late last year. There is some talk of adding an additional cable connection to the US in about three years. Existing submarine cables have also been increasing their capacity by upgrading equipment, effectively increasing the carrying capacity by a factor of four.
All these improvements in Australia's connection to the world have put a downward pressure on Internet connection prices. A year ago, when I setup my ADSL connection, I was paying $85 a month for a quota of 25GB. After several price/quota plan changes over the past year, I am now paying $60 for a 70GB plan. Other companies offer even better deals of 150GB for $50 a month, but they bundle the phone service with it.
I am very happy to see that market forces have worked for the benefit of consumers in this case. This is how capitalism is supposed to work!
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