Southern Cross network to benefit ISPs

The completion of the Southern Cross network should benefit ISPs and services organisations that resell capacity to end users.

AAPT subsidiary is one of the first service providers to adjust how it sells the capacity on to other ISPs. It will gain access to the Southern Cross network through its parent company AAPT, whose major shareholder, Telecom New Zealand, owns 50 per cent of the Southern Cross cable. has announced that from November, its "ISPdirect" service will give the 240 ISPs and corporates that resell its capacity a choice of fixed cost or volume-based pricing.

"This service is mainly for large ISPs who were previously charged on a usage or volume basis," said Peter McGrath, chief operating officer of "We are offering a fixed rate for dedicated access to different pipe sizes, so instead of paying per megabyte or gigabyte, you can opt to pay for bandwidth. You pay for a link at a certain amount of Mbps that is charged at a flat monthly rate." national wholesale manager Luke Dymond estimates customers using the new fixed-rate scheme can save up to 40 per cent in comparison to today's per-volume rates. McGrath named the completion of the Southern Cross network as the fundamental reason for the offer.

"Previously, most international carriage was only provided by two or three players - Telstra, Cable and Wireless Optus and some satellite carriers," said McGrath. "For a number of years we have re-sold that international transit to other providers. But as of the end of November, we will gain direct access to the substantial capacity of Southern Cross."

Copyright © 2000 IDG Communications, Inc.

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