Hong Kong is almost the size of Hobart!
With a third of the population of Australia, crammed into an area 1/6000th the size!!!
That sort of population density (the fourth most dense country in the world), makes infrastructure cheaper than here, and offers more competition from businesses that are all located in the same area (in Australia we might have more companies/providers, but some may only cover certain regions or cities - reducing competition in the country as a whole). Plus, our cities have to offset/subsidise the regional areas, which is the sticking point for our proposed National Broadband Network - some politicians are chasing votes by wanting regional users pay more for the higher set-up costs out there, while other politicians want everyone to pay the same, despite it costing less to set-up and operate in the cities, for 90% of the population.
In HK, they don't have that same cost variance issue, as their providers can cover the same amount of people with probably 1/2000th less expense (the differences in landmass and population densities of our two countries). As such, I'm not surprised that they have a significantly cheaper access to Internet, and don't see our prices as being excessive.
We do have adequate competition here for the limitations our providers have working against them (large landmass is difficult/expensive to 'hardwire' or provide full and/or affordable coverage).
For the record...
HK - 1,100 km2 - 7million people = 6,480 people per km2.
Hobart - 1,400 km2 - 210,000 people.
Australia - 7.6million km2 - 22.5million people = 3 people per km2.
Australia has six thousand times the land mass, but only 3 times the number of people as HK.
Think of it this way - take the population of
Australia's largest and third largest cities (Sydney and Brisbane), and squeeze them into Hobart.
Now take all those services, businesses and infrastructure and cram them into that small area... now what cost savings can you imagine are now possible? You already have 2 large city's worth of duplication, plus less area to cover for just about every business being 'relocated' to a small city like Hobart.
Now imagine ISPs in those two Cities servicing the same number of people in an area the size of Hobart? A lot more competition and cheaper deals would occur, wouldn't they? But in Australia, with a density of just 3 people per square Kilometer... us city foke have to pay for services (not just internet) that can often cover large tracks of unpopulated or sparcely populated land.
