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Broadband connections take over dialup in New Zealand. ISPs should wake up about now

By Mauricio Freitas, in , posted: 6-Mar-2008 15:25

Today Statistics New Zealand released some interesting information, showing that for the first time broadband connections passed dialup in numbers in this country.


The number of broadband subscribers in the six months to September 2007 overtook the number of dial-up subscribers for the first time ever, Statistics New Zealand said today.

Broadband subscribers continued to increase – up 14.4 percent in the six months to September 2007, to reach 829,300. However, this growth rate has slowed from an increase of 28.6 percent in September 2006 and 18.5 percent in March 2007. Subscribers with dial-up connection fell 8.6 percent from March 2007, down to 675,800.

The number of broadband subscribers grew from 9 per 100 inhabitants to 19.6 per 100 inhabitants in the two years ended September 2007, while the number of dial-up subscribers per 100 inhabitants fell from 21.2 to 15.9. Of the additional 10.6 broadband subscribers per 100 inhabitants, half switched from dial-up and the remaining half were new subscribers.

There was a 47 percent increase in the number of Internet service providers reporting that the cost of international bandwidth had been a barrier to growth in the past two years.


Good news. I understand those ISPs who complained of the cost of international bandwitdth as a barrier are right in some points.

But they also have to understand that broadband is not going back, and connections are only likely to go up in numbers. So there's not much they can do about it, except better capacity planning (currently lacking in almost every New Zealand ISP it seems) and apply more realistic prices to their plans.

In the last two years we've seen many examples of ISPs (Xtra, Woosh, Slingshot) who offered "unlimited" broadband plans, only to later realise people do take "unlimited" seriously. Some of these ISPs closed the plans to new customers, applied rate shapping technologies to limit the utilisation ("unlimited"?) or simply denied anything was happening, while constraining resources until users had to cancel their accounts.

It is time for ISPs to stop doing this and be realistic about the services people expect from them.

Other related posts:
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Mauricio Freitas
Wellington
New Zealand


I live in New Zealand and my interests include mobile devices, good books, movies and food of course! 

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