Surge in Demand for Bandwidth Drives Initiative

Surge in Demand for Bandwidth Drives New Southern Cross Marketing Initiative

Media Statement from Southern Cross Cable Network

Surge in Demand for Bandwidth Drives New Southern Cross Marketing Initiative

To promote the wiring of Australasia to the developed Internet world, Southern Cross Cable Network has reduced its base prices for trans-Pacific and trans-Tasman bandwidth by 20% in the lead up to the network's service date of 15 November.

From 22 August 2000, the base price for a 15 year 155 Megabit connection between Australasia and the United States has been reduced from $US 12.9 million to $US 10.4 million. Connections between Hawaii and the US have been reduced from $US 1.4 million and $US 1.12 million, and between Australia and New Zealand from $US 4.1 million to $US 3.28 million. These prices are for end-to-end, fully protected capacity covered by 15-20 year indefensible rights of use.

A further discount of 18.5% will apply to all capacity purchases resulting from Southern Cross' third Data Gathering Meeting to be held in Hawaii on 22-25 August.

Announcing the new pricing structure at the ISPCON Australia event in Melbourne, Southern Cross Director Asia Pacific Market, Ross Pfeffer said the price reductions have been planned for some time and follow the success of pricing initiatives announced in August 1999, which resulted in capacity sales from Southern Cross' second Data Gathering Meeting of $US 553 million.

"It has always been our strategy to reward our pre-service customers. The response to our pricing initiative last August was outstanding, and this combined with an unprecedented increase in demand as November draws closer has put us in a position where now we can go even further," said Mr Pfeffer.

"It is Southern Cross' objective to maintain pricing that allows our customers to realise their online goals. If Australasia is to truly become part of the wired world then bandwidth must be affordable enough to satisfy the increasingly strong demand."

Full Marketing Package to be announced at Hawaii DGM The price reductions are part of Southern Cross' final pre-service marketing package. The full marketing package will be announced to existing and prospective customers at Southern Cross' third Data Gathering Meeting in Hawaii later this month.

"The full marketing package includes a number of other initiatives designed to deliver our customers the flexibility of service they require," said Mr Pfeffer. These include changes to Southern Cross' volume discount structure, with the company set to lower the point at which volume discounts become effective, delivering significant benefits to customers both large and small.

"Collectively these changes will enable Southern Cross to take Australasia into a new level of Internet experience, opening up tremendous opportunities for the region." said Mr Pfeffer.

- ENDS -

Southern Cross Price Summary ($US million)

* End to End
* Fully Protected Capacity
* 15 to 20 Year IRU
* US $ millions

155 Mb

Australasia - US
Old Base Price 12.900
New Base Price 10.320
Surfin' URL Price 8.410

Australia - NZ
Old Base Price 4.100
New Base Price 3.280
Surfin' URL Price 2.670

Hawaii - US
Old Base Price 1.400
New Base Price 1.120
Surfin' URL Price 0.910

45 Mb

Australasia - US
Old Base Price 7.036
New Base Price 5.680
Surfin' URL Price 4.630

Australia - NZ
Old Base Price 2.236
New Base Price 1.800
Surfin' URL Price 1.470

For further information contact:
Philip Clark
Media Contact
Southern Cross Cable Network
Tel +61-401-108-902
philip@svl.co.nz

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