FlatRate.net.nz is SouthNET's new, premium fixed price Internet dial-in service. The Southern Cross Cable should result in an increase in available bandwidth for New Zealand at a lower per megabyte wholesale fee. This is a change to the cost structure for New Zealand ISPs. Although there should be a reduction in wholesale bandwidth costs for New Zealand ISPs, we have read that some NZ ISPs are still losing money and have had to lay-off staff.
FlatRate.net.nz service aims to provide superior flat-rate Internet service for a premium price.
As we understand it, both wholesale Internet bandwidth and telecommunication datalines in the U.S.A. are significantly less expensive than they are in New Zealand. Due to their small size and lack of proximity to the Northern Hemisphere, New Zealand ISPs do not enjoy the significant purchasing benefits that accrue to AOL due to its size, buying clout and economies of scale. South Net Ltd. All Rights Reserved.