For National Intern Day, TeleGeography welcomes summer pricing intern Lizzie Hahn to the blog! Lizzie is one semester away from earning her BA from the George Washington University here in Washington, DC. She’s a pre-law student double-majoring in political science and international business.
We loved having her cohort in the office to assist with large, data-intensive research projects throughout the summer.
Today, Lizzie shares a touch of what she’s learned about broadband markets Down Under while on the job. We’ll hand it over to her.
As a TeleGeography intern this summer, I’ve had the chance to dive into some fascinating research on business broadband markets across Asia, Oceania, the United States, and Canada.
Among all of these regions, the strategies in Australia and New Zealand stood out to me.
Here’s what I learned.
Unlike many countries where broadband expansion relies heavily on private investments that can lead to patchy service, particularly in rural areas, Australia and New Zealand took a different route. These two countries opted for a government-led initiative to invest in the infrastructure of their broadband market.
Government Initiatives and Investments
Australia: The National Broadband Network (NBN)
Launched in 2009, the NBN is one of Australia’s most ambitious infrastructure projects. With an investment exceeding AUD 50 billion, the NBN aims to provide high-speed internet access to 93% of Australian homes, schools, and workplaces, with a focus on underserved rural and remote areas.
The network employs a combination of fiber, fixed wireless, and satellite technologies to achieve its objectives. (And they’ve already been featured on the TeleGeography blog.)
New Zealand: The Ultra-Fast Broadband (UFB) Initiative
Similarly, New Zealand’s UFB initiative, initiated in 2009, strives to deliver fiber connections to 87% of the population. The government pledged NZD 1.5 billion, further supplemented by private investments.
The UFB predominantly harnesses fiber-optic technology, offering speeds of up to 1 Gbps, by initially targeting urban centers before expanding to smaller towns and rural areas.
Market Transformation
As an intern, I’ve been interested to understand how these investments changed the market landscape.
In both cases, the rollout of these national broadband networks fostered competition and reduced the dominance of established telecom providers. By providing the underlying infrastructure, these programs enabled numerous internet service providers to compete on a more level playing field.
In Australia alone, my research found that there are over 400 retail service providers offering NBN services. This shift appears to have democratized access to high-speed internet, especially in remote areas where private investment was previously scarce. Similarly, New Zealand has seen a diversification in the market, with over 200 ISPs offering services under their Ultra-Fast Broadband initiative.
Government investments in broadband are interesting for more than one reason, but as a pricing intern, what grabs my attention is how these investments have shifted pricing dynamics.
Pricing Dynamics
Government investments in broadband are interesting for more than one reason, but as a pricing intern, what grabs my attention is how these investments have shifted pricing dynamics.
Australia
The NBN hasn’t exactly been the money-saver everyone hoped for right away.
According to the Australian Competition and Consumer Commission (ACCC), folks on entry-level NBN plans ended up paying about 4% more in 2021-22 compared to the previous year. Those with mid-tier plans saw an even bigger hike, around 5%, and if you were on the high-speed or premium plans, you got hit with a 9% increase.
But it’s not all bad news.
The ACCC noted that for higher-speed plans, like those at 100 Mbps and above, the removal of capacity-based charging meant ISPs could offer faster speeds without jacking up the prices during peak times. So, while lower and mid-tier users are paying more, those on higher-speed plans are seeing better performance without extra costs during busy periods.
It’s expected that, over time, prices will decrease with increased competition.
New Zealand
Starting on October 1, 2022, there was a 5% hike for all fiber services under the 2022 CSA.
But, again, it’s not all bad news.
The 900/550 Mbps Fiber Max plan saw a modest increase of around 4%. Meanwhile, Chorus slashed the prices of its Hyperfibre plans significantly, with the fastest 8/8 Gbps option dropping by up to 26%.
The reason behind these adjustments? The removal of capacity-based charging allowed ISPs to offer faster speeds without hiking prices during peak times. This led to better performance and greater customer satisfaction for plans above 100 Mbps, making higher-speed plans more appealing and accessible.
What’s My Takeaway?
What will I ultimately take away from these case studies when I return to the classroom this fall? I’ve noticed that these programs often promote two core things: enhanced connectivity and economic growth.
Australia and New Zealand’s broadband projects are examples of how government investment in infrastructure can drive economic growth and innovation. As an intern, I’ve observed how their strategies, tailored to unique geographic and market challenges, have shifted the business broadband landscape.
While the National Broadband Network might not have delivered the initial cost savings everyone hoped for, it’s brought some major benefits. Accenture estimates that faster broadband speeds will boost Australia’s GDP by around AUD 400 billion from 2023 to 2030. This is especially true in regional and remote areas, where better connectivity has driven growth in e-commerce, education, and job creation.
Over in New Zealand, the Ultra-Fast Broadband initiative has been a game-changer too. Experts at Alcatel Lucent’s Bell Labs predict that the UFB initiative could deliver around $32.8 billion in economic benefits over two decades by expanding access to high-speed internet and enhancing business efficiencies across New Zealand.
Further, these initiatives have made broadband a compelling option for WAN managers considering a move to a hybrid network.
As I see it, Australia and New Zealand’s broadband projects are examples of how investment in infrastructure can drive economic growth and innovation. And from my seat as an intern, I’ve observed how their strategies, tailored to unique geographic and market challenges, have shifted the business broadband landscape.
Many thanks to Lizzie for sharing insights from her summer internship. If you’d like to explore a TeleGeography internship, keep an eye on our Careers page for opportunities in 2025 and beyond.
