USA-style Unlimited Downloads Loom in Australia

Currently Australians’ broadband internet packages are defined by both speed and download limits. However, all this could be changing as we now could be heading towards American-style unlimited broadband internet download plans with the news that telecommunications infrastructure company PIPE Networks Ltd has decided to accept a $373 million takeover bid by TPG Telecom Ltd.

The takeover is rumoured to be the beginning of a process that could lead broadband internet provider TPG, now the third largest internet provider in Australia after Bigpond and Optus, to offer unlimited broadband internet download deals. Ovum telecommunications research company analyst Nathan Burley said this move could push all of Australia’s internet providers to swiftly follow suit.

After the acquisition goes through, TPG will come to own PIPE Networks Ltd’s so-called ‘dark fibre’ network that connects Australia’s major metropolitan areas, Australia's largest internet exchange, and a PPC-1 cable that stretches from Sydney all the way to the island nation of Guam, which will help Australians connect better with businesses and family throughout the Australasian region.

Mr Burley continued, ‘This purchase, the driver behind it is to get more scale and better purchasing options for a lot of backhaul assets, to allow them (TPG) to offer bigger data caps and potentially unlimited broadband services.’

The next major factor to take into consideration is how much TPG charges for the new unlimited deals, as this will determine whether or not the other Internet Service Providers are pushed to go down the same path. Shares in TPG have risen rapidly following a trading halt that was lifted after a shareholders' vote.