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NBN shock: Tasmanians slugged for internet use with prices expected to fall as the rest of Australia comes online

ABC.net.au

Light  streams through fibre optic cables

Starting point: Digital Tasmania says the pricing
schedule will generate interest in the NBN.

Intial pricing for superfast internet indicates Tasmanians will be paying more than the rest of Australia but it is expected prices will come down further.

An internet consumer group expects that competition will eventually bring superfast internet prices in Tasmania in line with mainland states.

Digital Tasmania says today's announcement of the first prices for web access on the National Broadband Network (NBN) in the state is a good starting point.

It is regarded as the opening salvo in the battle to woo Tasmanians to the NBN.

Internet provider Primus says it will charge $45 a month for 15 gigabytes at 25 megabits per second for the first six months after which the price will double.

Primus is one of the first three internet service providers (ISPs) signed up to provide Tasmania with internet access under the Federal Government's $43 billion fibre optic network.

Its access speed and download limits are comparable with the fastest broadband currently available in Australia but it will charge more for larger limits and to access the full 100 megabits per second of the NBN.

Digital Tasmania's Andrew Connor says more competition in coming months should mean the pressure is on to keep the price about $50 for the initial plan.

"Similar services available elsewhere on fibre optic networks in Australia see the prices at about $50 per month, compared to almost $90 here, so we hope to see similar pricing to other places in Australia applied to the fibre optic networks here," he said.

"We're pleased to see concrete pricing at last on NBN services in Tasmania and we hope that they evolve further with more competitive forces in the coming months.

"It's definitely a good starting point to get people interested in the NBN and we hope the prices come down further and competitors offer their services at these or better prices."

Primus hopes its initial entry-level NBN internet and phone plan will win customers.

Spokesman Andrew Sims says the company wants to corner the emerging market.

"We want to try and get customers connected to experience what we consider the broadband for the next generation," Mr Sims said.

"We're obviously looking at trying to get as many customers to take this service up, hence we wanted to take an aggressive stance on pricing."

The Broadband Minister, Senator Stephen Conroy, says anticipated lower prices will bring relief to Tasmanians who have been suffering because of a lack of competition.

"This is the first stage, the beginnings of competition as others come into the market which will drive competition down, something that Tasmanians, who've suffered the slowest and most expensive, broadband in the country have suffered from," he said.

Smithton, Scotsdale and Midway Point are due to be connected to the NBN by July.

Alternative providers iiNet and Internode are yet to announce their pricing.

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