Since the release of the 2001/2002 Edition of Telsyte’s Industry Profile: Australian DSL Services report, Telsyte conducted a second level DSL tariff analysis in order to provide further insight into the various ADSL service plans available in the Australian market.
Using ABSD statistics – Internet Activity, Australia (June Quarter 2001) released in September 2001, that detail download patterns for residential subscribers and business/government subscribers it was found that most DSL providers target business clients using services and tariffs designed for residential users.
In fact, for a business that uses the Internet to move large number of content – eg graphics, presentations, even video or video conferencing – the monthly bill could well be in excess of the published tariff, thus causing a shock to the unsuspecting business client.
Telsyte’s research shows that 85.7% of DSL service providers described that market as their sole target or one of their few target markets. However, most of these providers offer asymmetrical services, even though most experts in the telecoms industry maintain that ADSL is a flavour that is more suitable for the residential sector. Residential users tend to download more information than they upload. SHDSL or other symmetrical services are more suitable for business and government since users in that sector tend to download and upload a similar amount of data.
Telsyte’s tariff analysis suggests that Australian DSL service providers still need to develop and offer a product that is truly designed for business and government. The service must be reasonably costed, have no hidden usage charges and have high levels of availability, backed by a strong SLA.
Very few symmetrical tariff plans were available for analysis and it was unclear as to whether the low take up of Symmetrical DSL was due to pricing or to lack of marketing. Current pricing strategies, at both retail and wholesale levels, serve to make DSL a more expensive technology than it has to be. This is seen as hampering the widespread adoption of this broadband technology in the business sector and in Australia.
Some of Telsyte’s research is also available from our Website: Telsyte
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