Southern Cross Cable has cut prices by a fifth.
The telecommunications cable, which connects Australia and New Zealand to the United States and is half-owned by Telecom, says the reductions in capacity should encourage prices the trend of larger broadband data caps to customers.
Southern Cross says it is the tenth major price cut since the cable was commissioned in 2000 and prices have fallen by an average of 22% a year since then.
A bid to build a rival network collapsed in 2012.
