Data caps remains the main cost of broadband

The Internet Industry Association (IIA) issued its third Spectrum Value Partners/IIA Broadband index covering the period April-June 2007.

According to the report the speed, cost and availability of broadband services in Australia (across the wired and wireless space) and monitors the progress made towards meeting the IIA’s 2010 national broadband targets.

Data caps still remained as the primary component of the cost of broadband internet however there were no increases in included data allowances had been observed since the last index (Q1 2007) and Internet plans have also remained static in terms of their total cost to users.

The Index has also found that the availability of entry level broadband ADSL internet in Australia has slightly increased as exchanges continue to be upgraded nationally.

The report also found ADSL2+ availability has increased by 7 percent as operators continue to roll out services throughout Australia. However, ISPs are starting to concentrate on rolling out services in areas already serviced by competitors.

Throughout Australia, ADSL availability is now estimated to cover 91.8 percent of the population, Cable is at 33 percent and ADSL2+ is at 53 percent, the report stated.

In releasing the latest Index, IIA chief executive Peter Coroneos said, faster broadband services are being rolled out to more Australians, however the cost of data is emerging as an important determinant of how plans are being selected by users.

"The IIA believes that unless the costs of data issues are addressed, Australians will be limited in their ability to use broadband to its fullest extent,” he said. "This becomes more critical as more users move to higher speed plans where their propensity to consume increases."

According to Coroneos the IIA doesn’t want the cost of data to become prohibitive so as to disadvantage Australia compared to the rest of the world.

"The findings therefore support the need for our recently announced examination of data capacity issues for Australia," he said.

In compiling the Index for Q2 2007, 136 different residential broadband plans were analysed. These plans were offered across ADSL, ADSL2+, Cable, wireless and satellite.