Internode Blog

Price Squeeze Explained

Thursday, September 30th, 2010 by

(This is a clearer explanation of the price squeeze, abstracted in part from a longer blog posting from the author here:

Those who follow developments in the Australian Internet industry will be aware that many Internet Service providers and their customers are currently suffering the effects of another ‘Telstra Price Squeeze’ in geographic areas of Australia where Telstra holds a monopoly on ADSL broadband services supply.

However, those outside of the Internet service provider industry may be understandably unclear on what this is, what it means, and why it matters.

Where this is mentioned, it can be frequently misunderstood by consumers to mean that providers are just ‘crying poor’ or ‘not trying hard enough’ – that its nothing but an exercise in sour grapes.

It is none of those things.