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I'm surprised at how well connected Australia is. Why is their internet still so expensive?



There's only 2 connections to the USA at the moment, and SCC charges monopoly prices. There is another AU<>NZ<>USA connection being built in 2014 and another AU<>NZ connection built in 2013 (the 2 grey lines). Southern Cross already dropped their prices 44% in response.


Perhaps because it costs money to lay cables.

I was talking to an astronomer the other day who mentioned that they're trying to set up a big distributed radio-astronomy rig out in the desert. One of the consequences is that this thing is going to be producing a ton of data - I think he mentioned on the order of petabytes-per-second. So they're trying to work with the Australian government and Telcos to defray the costs by offering the connection as a service, as well. So the cost could drop, soon.

Or it could just be offered as a $300 MEGA-SKYLINK-INTERTRON.


Price is usually not set at "Cost + Profit %" (this is called the Labour Theory of Value), instead organisations charge what the market can bear.




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