Pricing Trend Analysis for the Australia Dark Fiber Network Market

Report Overview

The Australia dark fiber network market has recently experienced notable pricing trends. As demand for high-speed and reliable connectivity continues to grow, the competition among dark fiber providers has intensified, resulting in downward pressure on pricing. With more players entering the market and expanding their network infrastructure, customers have gained access to a broader range of options with reliable prices. For instance, Nexthop Pty Ltd., a telecommunication service provider, offers point-to-point dark fiber routes between data centers in Australian capital cities at the cost of AUD 250 per month, accompanied by a one-time setup fee of AUD 1000. The service is available on a month-to-month contract basis. Consequently, Nexthop's dark fiber pricing initiates at AUD 250 per month and is subject to variation based on the specific locations at both ends of the connection.

As the distance between endpoints increases, the prices for dark fiber connectivity decrease. The pricing structure is designed to accommodate longer distances, ensuring cost-effectiveness for customers. By adjusting the pricing based on the distance, dark fiber service providers aim to provide competitive rates that align with the specific needs of each connection. Moreover, as the lease period increases, the prices of the dark fibers are also reduced. For instance, Telstra Corporation Limited offers lower prices as the distance and lease period increase. Such factors ensure competitive pricing tailored to the unique requirements of each connection. 

As per the GVR Analysis, the figure above showcases the Telstra Corporation Limited pricing estimates for metro on-net to on-net dark fiber connections in Australia. The prices are given in AUD per pair per month and vary based on the lease period, ranging from 0 to 10 years and above 10 years. For distances up to 5km, the industry low per kilometer (per pair per month) is AUD 334, respectively, for a lease period of 0 to 10 years. As the distance increases, that is, up to 15 Km, the price decreases to AUD 301 for a lease period of 0 to 10 years. Similarly, as the lease period extends beyond 10 years, the prices decrease, with the industry per kilometer dropping to 207 AUD for 5 Km and AUD 186 for up to 15 Km, respectively.

Additionally, advancements in fiber optic technology and increased fiber deployment across Australia have contributed to better pricing trends in the dark fiber network market. The expanding network infrastructure has led to improved availability and reduced costs of laying fiber cables. Telecom players are striking partnerships with other companies to bring fiber closer to service providers and lower prices. For instance, in November 2021, Aussie Broadband, a telecommunication company, announced its partnership with YourDC, a South Australian data center company, to deploy a dark fiber network throughout Adelaide. This network spans an impressive 112 kilometers and consists of 360-core dark fiber, covering the wider metropolitan region of Adelaide. The primary objective is to offer businesses better speeds and bring fiber closer to the service providers, thereby contributing to lower prices for end users.

Australia Dark Fiber Network Market Report Scope