BROADBAND BLUES

This story, is listed under the 'Life' section of this Blog. It has just appeared on iT Wire:

I can't help but smile when I read stories like this. One of the major reasons we have a low uptake of high speed Broadband is that the ISPs charge like wounded bulls. It's expensive compared to countries like the USA, UK, Korea, and it seems, even tiny New Zealand.

However, one of the benefits of spending 12 years living in the USA (Population: 300 million), versus Australia (Population: 23 million), is getting the right perspective on economies of scale. Australia simply doesn't have enough population across which we can spread large infrastructure investments to pull in enough customers to make the service (any service) cheap enough for widespread adoption.

Out of the population of 23 million, there are probably only 12-14 million people and companies (not multi-nationals) paying tax, so for a sophisticated economy that means every service we demand be supplied to us will have to cost more than in countries with larger populations.

Most Australians (especially those who have never travelled internationally) have absolutely no appreciation of why 'stuff' costs so much in Australia. And yet, we currently have 65 different car brands vying for business here - it's ridiculous.

I'm guessing the companies all make a 2% margin on everything they sell (I'm joking), and that's enough to justify such an explosion of choice.

There are some things in life that don't add up! Don't worry about it. It's just another imponderable (and a mystery to me).