As it stands currently, Australia has five major submarine telecommucations cables that carry internet traffic between it and other countries. Telstra has always owned most of the cable capacity that leaves the country. Needless to say, there's been a big void in terms of wholesale price competition in this area since day dot.
However, things are looking up with not only the recent launch of Pipe Networks' carrier neutral cable in Australia dubbed PPC-1 (soley for providing wholesale services to retail providers), but now plans are confirmed for a new 13,600-kilometre submarine cable to be laid that is said to double internet capacity out of the country.
The two companies making it happen are Pacnet and a new one called Pacific Fibre who are together investing an estimated AU$450 Million to make it happen, which they plan to have ready for use by 2013.
The end result should mean lower wholesale pricing thanks to more competition, which should be reflected in retail plans, if not so much with cheaper rates, higher quotas.
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