X

ISP iiNet says its quick move to secure capacity on Pipe Networks’ planned new $200 million, 6900km Sydney-Guam undersea cable will help lower Internet pricing.

Australia’s third biggest ISP says it will switch up to half its international capacity on the cable when it lights up in 18 months, after signing a 15-year international “foundation customer” agreement.

“This agreement will provide iiNet with long-term supply certainty and significant cost savings,” said iiNet MD Michael Malone, checking in from Hawaii.

Company spokesman Greg Bader said the deal should allow the ISP to keep its download pricing in reach of consumers. International bandwidth accounts for around 15 per cent of the company’s costs.

Pipe and iiNet say the new cable will jolt “the effective duopoly on international traffic” by the Southern Cross Cable (SXC) and Australia-Japan Cable (AJC), which are dominated by Optus and Telstra. AJC has already announced a plan to increase its capacity by 50 percent to 240Gbps by April.

 

The Pipe cable should light up in mid- to late-2009 with potential capacity of 1.92 terabits a second.

Guam is the junction for other cables to North America, Japan and China (see Verizon report, next story, page 2).

“Foundation customers want a change from the overpriced bandwidth product available for the past eight years,” said Pipe CEO Bevan Slattery. “We all realised that this is the last chance to break the stranglehold on international capacity pricing into Australia.”

Communications Minister Stephen Conroy got in on the act, officially announcing the Pipe project. Drawing something of a long bow, Conroy said the cable is critical to the success of the Federal Government’s plans to spend $4.7 billion on a new national FttN broadband access network.

728x90 Internet Costs To Slump With New Cable
Hisense KV BannerAd 728 90 Internet Costs To Slump With New Cable
BlueAnt 4SQM PumpAirUltra 728x90px Internet Costs To Slump With New Cable
MaxRanger4K Leaderboard 728x90 Internet Costs To Slump With New Cable
JBL TourPro3 728x90 Internet Costs To Slump With New Cable
728x90 Internet Costs To Slump With New Cable
BEL2535 BPB024 4SQ Banners 728x90 Internet Costs To Slump With New Cable
GOTHAM 728px x 90px Internet Costs To Slump With New Cable
ELX DIG Crosscat Promo 728x90 Mar25 Internet Costs To Slump With New Cable
Flick of a switch 728x90 1 Internet Costs To Slump With New Cable
241211 SAV Ruark CNewsJan Leader Internet Costs To Slump With New Cable
Skullcandy 728x90 1 Internet Costs To Slump With New Cable
Westan 728x90px Internet Costs To Slump With New Cable
AU X8 Banner 728x90 Internet Costs To Slump With New Cable
HAIER Series 600 FLW HPD Pairs 728x90 1 Internet Costs To Slump With New Cable
Px7 S3 728x90 1 Internet Costs To Slump With New Cable
728X90 1 Internet Costs To Slump With New Cable
Arlo EOFY25 728x90 Internet Costs To Slump With New Cable
ChannelNews AZ100 728x90 Internet Costs To Slump With New Cable
Marshall 728x90 1 Internet Costs To Slump With New Cable
Uniden Channelnews SoloX July 2024 728x90 1 Internet Costs To Slump With New Cable
FA 979 HN MDF SG14 14gen 728x90 1 Internet Costs To Slump With New Cable
channel news banner 728x90 Hitachi Internet Costs To Slump With New Cable
728 x 90 Internet Costs To Slump With New Cable
728x90 Internet Costs To Slump With New Cable


YOU MAY ALSO LIKE