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New pricing a boon for local broadband

  • 02 April, 2004 16:21

<p>SYDNEY, April 2, 2004 – This week’s decision by Telstra to lower its wholesale ADSL
pricing, after earlier slashing its entry level retail price, represents a massive shot in the arm for the Australian broadband market, according to broadband specialists NetComm.</p>
<p>“These new ADSL pricing structures ensure that the Australian market for broadband equipment and services is now better placed for growth that at any other time since it’s inception,” NetComm managing director David Stewart said.</p>
<p>The widely held view is that fairer wholesale pricing will greatly benefit smaller operators and spur a surge both in the demand for, and development of important applications such as telecommuting, interactive broadcasting and entertainment, IP telephony, telemedicine, remote learning and security to name but a few.</p>
<p>“Equipment such as high-speed modems, routers and wireless solutions will play a key role in the emergence of this new communications landscape,” Mr Stewart said.</p>
<p>Peak U.S telecommunications body, the TIA reported last year that “as broadband penetration rates grow, there will be a resulting demand for computer and home networking equipment, as well as wireless handheld devices and other equipment that facilitates broadband use.”</p>
<p>NetComm recently reported a significant jump in net profit for the six months to December 31, 2003, due in large part to increased sales of broadband equipment to providers of high-speed, ADSL services. The Australian broadband market does, however, have a lot of growing still to do with recent figures from IDC recording local broadband penetration at around 7 percent, substantially lower than world leaders such as South Korea and Canada.</p>
<p>Yet despite concerns expressed last month that the local market could be under threat, the ACCC’s success in persuading Telstra to rethink its wholesale pricing has resulted in a more positive course being mapped for the future.</p>
<p>Commenting on Telstra’s announcement on Wednesday, ACCC chairman Graeme Samuel said: “Today’s announcement does appear to be a victory for common sense for wholesale customers and consumers.”</p>
<p>In short, the fact that smaller operators now have more room to move on price is a crucial step in fostering a vibrant and competitive local market for innovative, future communications.</p>
<p>“The vast majority of Australians are now able to afford access to high-speed, business grade communications which will see a burgeoning of important new applications for business and the home, in turn driving further demand for services themselves,” Mr Stewart said.</p>
<p>About NetComm
NetComm is Australia’s leading provider of broadband solutions with a commanding position across the key markets of DSL, wireless, routing, high-speed networking and digital surveillance systems. The company is listed on the Australian Stock Exchange (ASX: NTC). For specific enquiries or to arrange an interview with David Stewart or one of our engineers, contact David Binning: (02) 9424 2515, 0410 644 972, davidb@netcomm.com.au. Alternatively, visit www.netcomm.com.au.</p>

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