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Australians aren't buying fast broadband because companies are not offering it

Staff writer |
Reports say that the Australian public doesn’t want to pay for the higher speed options of the National Broadband Network (NBN).

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The Australian claims that only 15% of consumers have so far opted for speeds of 100 Mbps (Mega bits per second), with the bulk (47%) using the 25 Mbps service and the remaining 33% on the slowest speed of 12 Mbps, David Glance writes for The Conversation.

This purchase profile is being used as an argument against the need to change the Fiber To The Node approach of the current government, to the Fiber to the Premises or Fiber to the Distribution Point favoured by the opposition parties.

If people don’t want faster speeds, why provide better technology that guarantees even greater speeds than what is currently on offer?

In New Zealand where uptake of fibre broadband with speeds above 25 Mbps seeing a growing adoption rate. The U.S. market is also showing that services up to 1 Gbps (1,000 Mbps) have become increasingly popular.

In the U.S. and New Zealand, when advertising broadband plans, the emphasis is on the different speeds available. AT&T and Verizon do not even mention download limits as these are “unlimited”.

In contrast, in Australia, Telstra does exactly the opposite, selling plans on the basis of download limits.

Another of Australia’s major internet service providers, iiNet, does a better job of allowing the selection of either 25 Mbps or 100 Mbps plans. iiNet still emphasises the download limits, even though anything over 200 GB a month for the average family would be rarely used.

It is not surprising that in Australia, the majority of customers are opting for speeds of 25 Mbps because this is what the ISPs are pushing.

In the U.S. there is the view that if you build the infrastructure, others will provide the applications and services to use that infrastructure. Being first in that game is obviously important.

This is obviously not driving Australian ISPs, and why they don’t believe that they should offer faster speeds is a mystery.

Read the originial story here.


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