Telstra rides the broadband wagon

Telstra has promised to cut its broadband prices for its wholesale customers, with the intention of stimulating further take up of its ADSL service across Australia.

-Once wholesale customers have commissioned more than 100 of its wholesale ADSL product FlexStream, they will begin to enjoy bulk discounts to prices," Telstra Wholesale's managing director Rosemary Howard said.

Telstra claims prices will decrease by between 10 and 15 percent, depending on the speed of the ADSL service.

Telstra currently has 18 telco's and service providers offering its wholesale ADSL product to end users.

With 550 ADSL exchanges, the telco claims it will connect 45 more regions across the country to broadband facilities.

A new report in the US reveals that, despite the economic slowdown, there has been a strong take-up of high-speed Internet connectivity in the United States.

The survey -- conducted by Kinetic Strategies -- found there is 9.3 million residential customers connected to broadband facilities, with a staggering 119,000 signing up for high-speed Internet access per week. The figure translates to an 8.2 percent household penetration.

Although broadband service providers continued to raise prices due to the economic slowdown, the survey claims customers are continuing to connect to high-speed Internet services.

-We expect additional broadband subscriptions to grow despite the economic slowdown," Kinetic Strategies president Michael Harris said.

Furthermore, the report revealed that cable modem customers make up 70 percent of the market in the United States and Canada, exceeding the take up of Digital Subscriber Line (DSL).

DSL providers serve 2.9 million residential customers according to the survey.

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