Southern Cross to pay off for ISPs

The completion of the Southern Cross Network should benefit ISPs and corporates that resell capacity to end users, with AAPT subsidiary Connect.com.au being one of the first service providers to adjust how it sells the capacity on to other ISPs.

Connect.com.au will gain access to the Southern Cross Network through its parent company AAPT, whose major shareholder Telecom New Zealand owns 50 per cent of the Southern Cross cable.

Connect has announced that as of November, its "ISPdirect" service will give the 240 ISPs and corporates that resell its capacity a choice of fixed cost or volume-based pricing.

"This service is mainly for large ISPs who were previously charged on a usage or volume basis," said Peter McGrath, chief operating officer of Connect.com.au. "We are offering a fixed rate for dedicated access to different pipe sizes, so instead of paying per megabyte or gigabyte, you can opt to pay for bandwidth. You pay for a link at a certain amount of megabits per second that is charged at a flat monthly rate."

Connect.com.au national wholesale manager Luke Dymond suggests that, compared to Telstra's high price-point, ISPs can expect to save up to 40 per cent using a fixed rate service.

"And the ISP is locking into a fixed cost structure," Dymond said. "As the business grows, it can accommodate more bandwidth without incurring additional costs."

McGrath named the completion of the Southern Cross Network as the fundamental reason for the offer.

"Previously, most international carriage was only provided by two or three players: Telstra, Cable and Wireless Optus and some satellite carriers," said McGrath. "For a number of years we have resold that international transit to other providers. But as of the end of November, we will gain direct access to and substantial capacity from Southern Cross."

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More about AAPTCable and Wireless OptusConnect.com.auOptusSouthern Cross CableTelecom New ZealandTelstra Corporation

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