demand low for fast speed broadband

Wednesday, 10 March 2010 08:06

Patrick Stafford

Telstra's high-speed internet service, which offers speeds of up to 100mbps has only been taken up by about 200 customers since its launch last year, throwing the viability of the NBN into question.

But some analysts have said demand for such speeds does not exist because existing programs and services do not require faster downloads.

The Telstra network, access to which costs $269 per month for a 24-month contract, includes line rental and discounts on long-distance calls. But so far just 200 of the one million available customers have taken up the plan.

Chief executive David Thodey has told the Australian Financial Review that customers who have taken up the package are typically large families, "because 100 megabits doesn't make a lot of difference when you have one PC".

The upcoming NBN will offer speeds of 100mbps, but opponents have questioned its viability and necessity. Daniel Blair, telecoms and media analyst at Southern Cross Equities, also told the AFR that demand for faster networks has not reached a breaking point.

"Demand for speed is increasing but the question is, at what point in the future do people want 100 megabits? Customers, if given the choice, don't take the full speed."