The index will also be used to ensure Australia meets its broadband targets by the year 2010 and remains globally competitive.

Created by Spectrum Strategy Consultants on behalf of the IIA, the Index found prices in the second half of 2006 were flat. Average broadband costs only dropped one percent in this quarter.

At lower access speeds, the index found operators offer multiple plans with no single provider dominating in terms of best value offered, suggesting that the market has reached a plateau based on current wholesale pricing.

However, at higher access speeds, choice is more constrained, with fewer standalone plans on offer. Plans are more likely to be tied to the take up of telephony services.

The IIA expect more standalone, higher speed (Cable and ADSL2+) plans to be introduced during 2007 under local loop unbundling (LLU) provisions.