Infrastructure competition key to lower prices

A new report from the Internet Industry Association claims competition in infrastructure will put pressure on broadband prices.

The new paper also suggests that the pricing structure of the National Broadband Network will be essential for its operation, as it will be such a large player in the market.

“Overall, our analysis of the Australian broadband market suggests that where infrastructure competition exists, as in ADSL2+ and wireless broadband, service providers will more aggressively price their offerings, driving down the access price for consumers. However, in the case of limited infrastructure competition such as ADSL, broadband access price remains high for consumers,” the report states.

It also said high speed broadband over 17Mbps has experienced competition due the cheaper installation of some network components, resulting in a larger number of ADSL2+ services in higher populated areas.

“Not surprisingly, the highest decline in pricing, 32%, has been experienced in the ultra-high usage segment (20 GB/month),” the report states. “Wireless broadband has experienced tremendous declines in pricing… driven by the continued strong competition in wireless broadband market and proliferation of HSDPA wireless technology.”