An Australian ISP is currently seeking to increase its fees for internet users to pay for their subscription to an online video service.
The Australian Competition and Consumer Commission (ACCC) says the change would allow ISPs to charge more for their service, particularly as the market is changing rapidly.
A new fee model would mean ISPs charging a fee for every kilobyte of data they receive.
Currently, customers pay around $0.05 per megabyte of data, which is lower than the $0 in the US and around $1 in the UK.
Under the new plan, ISPs would be able to charge $0 to $1 per kilobytes for their content, depending on the data they transmit and the size of their network.
ISPs are already able to increase their prices, but only up to $2 per gigabyte.
The new fee plan is set to go before the Australian Communications and Media Authority (ACMA) on December 18, and is expected to be announced by early February.
While the fee plan would affect a majority of Australians, it is not the only issue in the industry.
The ACCC has said it is currently studying other factors that could affect Australia’s data pricing model.
This includes the cost of data transfers, which could be up to 10 per cent of the cost.
The agency has also said it will be looking at other factors including the speed of a network and the speed at which data is transferred.
ISPs have been working to reduce the cost to users, including by cutting down on data consumption, and are also trying to improve the speeds of their networks.
However, some analysts say the new fee system will not necessarily make Australia a better data-hungry country, as the new rules would only apply to Australians.
It will also not impact the current wholesale price structure, which already includes wholesale prices, data and an ISP’s operating costs.