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Australia - Broadband Market - Overview, Statistics and Forecasts


Attention: There is an updated edition available for this report.

Fixed broadband market ready to move to high-speed

Australia is in a unique situation, where the government’s vision for the national broadband network (NBN) has received widespread support. The current stage of development is in progress and that includes fibre, satellite and wireless. These developments will bring faster broadband within the reach of all Australians by the end of the decade. The economic and social changes will be profound in areas such as e-health, smart grids and internet of things (IoT), as well as the businesses and individuals involved. The NBN developments are discussed in a separate publication.

In this publication BuddeComm profiles the existing fixed and mobile broadband by sectors – including business, residential, ADSL and HFC, as well as a whole sector overview.

In the businesses sector we see that by 2012 many businesses are now interested in IT applications, including video media and cloud computing.

Business broadband expansion continues, with many individual employees now also being connected to mobile broadband. These fixed and mobile developments are happening in parallel and are certainly mutually exclusive. Once faster speeds become more widely available we will see business use explode with the uptake of services such as software as a service, along with cloud computing, online interactions and media conferencing, all services that need high-speed broadband to succeed.

In the overview of the sector we provide key statistics and trends in relation to the Australian broadband market, and these are segmented by geographical area and the type of access technology. We also provide market share and access revenue statistics. In addition, segmentation by dial-up, fixed broadband and some wireless broadband is given in the publication. Statistical information is provided, including surveys by government departments such as the Australian Bureau of Statistics.

The internet service provider (ISP) market is profiled, including information on the recent ISP takeovers that continue to dominate the industry. While the aim of the government is for more Australians to have access to more affordable broadband than is currently provided the telecommunications services to retail customers through retail service providers (RSPs) will open up to some and even additional players. During this process we are likely to see more consolidation in the ISP market, such as that which took place when subscribers moved from dial-up services to broadband.

In this publication BuddeComm also presents overall statistics of the residential broadband market. We provide an analysis of the drivers behind internet adoption among Australian households, with data from a number of market surveys covering consumer usage and behavioural patterns, as well as internet and broadband usage statistics. The figures used here are the latest available, with some historic statistics for a comparison over time.

We also overview the retail fixed broadband market that is now dominated by a small number of companies, Telstra being the majority provider of services, with more than four times as many retail subscribers as the second-largest ISP, iiNet. The other top ISPs include TPG, Optus and with M2 (Primus) holding less than half the number of subscribers. ISP numbers are estimated to rise as the NBN rollout encourages even more service providers to enter the marketplace by providing the future services that the fibre-enabled NBN market will allow.

The rollout of the NBN is set to alter the hybrid fibre coax (HFC) landscape with the dismantling of most of the overbuilt areas and customers being shifted onto the fibre network. Most of the HFC networks currently operating are by the two major operators in Australia, Telstra and Optus. Parts of these networks were recently upgraded to DOCSIS 3 as a way of remaining competitive in the current broadband market. That strategy has seen numbers remain fairly steady over the past year.

But, while the NBN rollout may take more than five years to cover all the HFC network areas, BuddeComm believes that the probability of more subscribers taking up IPTV services, and of additional suppliers entering the IPTV market, is likely to result in HFC network use of cable TV diminishing as broadband usage increases.

Market highlights:

The internet-connected home is nearly ubiquitous across Australia, with over 80% penetration rate predicted by end-2012;

Total value of the broadband markets is now more than $4 billion;

Cloud-based usage by business increasing as backups and shared data come from faster connections;

Online businesses are sustaining higher financial returns into 2012;

Data usage by users increases by 80% year-on-year in 2011 and is set to double as more broadband-enabled devices are used;

Connected or smartTVs will see a very rapid uptake over the 2013-2015 period;

An overview of new trends and existing technologies is provided;

Penetration rate of HFC broadband subscribers is under 10% of the total broadband market in Australia;

Key usage trends for the fixed broadband market.


  • EXECUTIVE SUMMARY
  • STATISTICAL OVERVIEW
    • OVERALL SIZE OF THE MARKET
      • Total broadband subscribers
        • Table Total broadband subscribers and annual change - 2000 - 2013
      • Subscribers by major providers/technology
        • Table Broadband subscribers - total market by technology - 2008 - 2012
      • Market shares
        • Table Broadband market - overall market share by technology - 2003 - 2012
    • ACCESS REVENUES
      • Statistical overview
        • Table Broadband access revenues by major provider - 2005 - 2012
        • Table Annual change in broadband access revenues by major provider - 2006 - 2012
        • Table Market share of broadband access revenues by major provider - 2005 - 2012
      • Average Revenue per User (ARPU)
        • Table Estimated fixed broadband ARPUs - 2006 - 2012
    • THE INTERNET MARKET INTO 2012
      • Australian Bureau of Statistics (ABS) Survey - 2011
      • Statistical information by technology
        • Table Internet subscribers by access technology - 2008 - 2011
        • Table Broadband market share by technology and annual change - 2008 - 2011
        • Table Data downloaded by access technology - 2010 - 2011
        • Table Data downloaded by access technology (historic) - 2008 - 2009
        • Table Business, government and household internet subscribers (historic) - 2007 - 2009
      • Broadband speeds
        • Table Subscribers' connected speed in Australia versus selected countries - 2010 - 2011
        • Table Internet subscribers by download speed - 2008 - 2011
        • Table Business, government and household internet subscribers by download speed - 2008-2011
    • ISP MARKET OVERVIEW
      • The market in 2012
      • Data limiting
      • ISP market statistics
        • Table Proportion of ISPs by size in the Australian market - 2008 - 2011
        • Table Number of ISPs - 2001 - 2012
      • ISPs contracting but some sectors may expand
      • Voice over Internet Protocol (VoIP) added to naked DSL
      • Industry forecast - 2015
        • Table Overview total telecoms/internet market - 2015
    • MARKET SEGMENT FORECASTS - 2005; 2010; 2015
      • Table Broadband revenues - 2005; 2010; 2015
      • Table Broadband market share by technology - 2005; 2010; 2015
    • BENCHMARKING WITH OTHER COUNTRIES
      • Fixed broadband
        • Table Fixed broadband access among internet households - selected countries - 2006 - 2011
        • Table Market penetration of households with broadband access as a percentage of all households - Australia and selected countries - 2009 - 2010
      • Wireless broadband
  • THE NATIONAL BROADBAND NETWORK (BRIEF OVERVIEW)
  • BUSINESS MARKET STATISTICS
    • MARKET TRENDS
      • Business market overview
      • ISPs targeting business
      • Broadbanded companies moving forward
      • The NBN and the business market
      • Business need faster speeds to communicate
        • Table Business takeup of broadband by access type - 2010 - 2011
    • BUSINESS MARKET SURVEYS
      • Survey reveals moving online benefits businesses - 2012
        • Table SME online trends - 2011 - 2012
      • Telstra Productivity Indicator 2012
      • Assessment SME market in Australia - 2011
      • Sensis - 2011 e-business report
        • Table SME computer equipment ownership trends - 1999 - 2011
        • Table Computer software and hardware expenditure - SMEs versus medium businesses - 2006 - 2011
        • Table Business trends in internet connections - 1998 - 2011
        • Table SMEs internet access methods, by technology - 2009 - 2011
        • Table Top 10 current uses of the internet by SMEs - 2009 - 2011
      • High speed broadband survey Northern Rivers
    • BUSINESS CUSTOMER EXPENDITURE ON TELECOMS
      • Overview
      • Spending information
        • Table Telco product mix of customer spend - 2010
        • Table Business and government market spending - 2010
        • Table Providers' market share - 2010
      • Optus IP Index - 2009
        • Table Security methods utilised for remote access to networks - 2008 - 2009
        • Table Devices used to connect to networks - 2008 - 2009
        • Table Employees' work locations - home, workplace or off-site - 2008 - 2010
        • Table Changes in usage of non-voice applications on 3G handsets - 2010
        • Table Plans for convergence of data and voice networks - 2005; 2008 - 2009
  • RESIDENTIAL MARKET STATISTICS
    • RESIDENTIAL MARKET TOTAL TELECOMS
      • Total customer expenditure telecoms
        • Table Telco product mix of customer spend - 2010
      • Residential telecommunications market
        • Table Revenue mix - residential market - 2010 - 2011
        • Table Service providers' market share - 2010
    • INTERNET HOUSEHOLD STATISTICS
      • Australian Bureau of Statistics (ABS) surveys and internet connectivity
        • Table Total households versus internet households - 1999 - 2011
        • Table Broadband component of internet enabled households - 2005 - 2011; 2015
        • Table Internet access households with children - 2005 - 2009; 2010 - 2011
      • Australian Communications and Media Authority (ACMA) surveys
        • Table Top 5 social networking age groups - 2011
        • Table Internet usage by age group - 2010
    • TRENDS IN THE RESIDENTIAL MARKET
      • Problems with broadband technology
      • Data increases in volume
        • Table Data usage by users - 2008 - 2011
      • Mobile broadband - an alternative to fixed line services?
      • Dial-up internet just hanging on
        • Table Dial-up and non-dial-up internet subscribers - 2003 - 2011
    • HOUSEHOLD USE OF TECHNOLOGY
      • Computer technologies
        • Table Computerisation in the home - 2011
      • Broadband technologies
    • OTHER RESIDENTIAL MARKET SURVEYS
      • Internet hours - usage increasing in 2012
        • Table Weekly internet usage by age group - 2012
      • New generations survey
      • Customer service issues and the Telecommunications Industry Ombudsman (TIO)
        • Table Total new complaints to the TIO - 2006 - 2012
  • DSL MARKET, OVERVIEW, STATISTICS AND PROVIDERS
    • BACKGROUND
    • REGULATORY ENVIRONMENT - ANALYSIS
      • Background
      • The impact of fibre optic networks on digital subscriber line (DSL) regulation
      • Unbundling of the local loop (ULL) and line sharing
      • Internet filtering funding cut
    • DSL INFRASTRUCTURE
      • Overview
        • Table Number of infrastructure providers by number of ADSL-enabled exchanges - 2007 - 2008; 2010 - 2011
      • Tool for competitors
      • DSLAM infrastructure
        • Table Number of DSLAMs by major providers - 2009 - 2012
        • Table Total number of DSLAMs - 2006 - 2012
        • Table Number of ADSL and ADSL2+-enabled exchanges - 2012
      • Street cabinet IP DSLAM2 upgrades
        • Table Top Hat proposed and enabled ADSL2 exchanges - 2011 - 2012
    • BRIEF OVERVIEW OF BROADBAND PROVIDERS MARKET
      • Market consolidation
      • The shrinking of ISPs
      • ISP customer satisfaction
        • Table ISP customer satisfaction ratings of selected ISPs - 2010 - 2011
      • Market share statistics
        • Table Total business and residential broadband subscribers - 2006 - 2013
        • Table Broadband DSL retail subscribers by major provider - 2008 - 2012
  • HFC CABLE NETWORKS
    • TECHNOLOGY
      • Hybrid fibre coax (HFC)
      • The DOCSIS standard
      • The next development for DOCSIS
    • MARKET STATISTICS AND ESTIMATES
      • Table Cable broadband subscribers by major operator and annual change - 2002 - 2013
      • Table Cable subscribers versus other broadband technologies - 2009 - 2011
    • AUSTAR UNITED COMMUNICATIONS LTD (AUSTAR)
      • Overview
    • BES/E-WIRE
      • Overview
    • TRANSACT
      • Overview
    • TELSTRA
      • Background information
      • DOCSIS 3.0 upgraded
    • OPTUS
      • Overview
      • Network DOCSIS 3.0 upgraded
    • INDUSTRY ANALYSIS
      • Do we need infrastructure-based competition?
      • Moving on from the HFC of the past
      • No long-term future in HFC cable broadband
      • HFC to be decommissioned as NBN rolls out
      • From HFC to fibre-to-the-home (FttH)
  • MOBILE BROADBAND - STATISTICAL OVERVIEW AND FORECASTS
    • MARKET OVERVIEW AND ANALYSIS
      • Growth slowly tapering off
      • Infrastructure to drive further expansion
      • Applications drive the market
      • Spectrum shortage
      • Mobile broadband revolution set to change the industry
      • Hardware drives applications
      • Mobile broadband to drive structural change
      • User prices remain high
      • Use of Unified Communications increasing
      • Smartphones driving data usage
    • WIRELESS BROADBAND MARKET STATISTICS
      • Mobile broadband subscribers
        • Table Wireless broadband subscribers by access type and annual change - 2007 - 2012
        • Table 3G mobile broadband subscribers by mobile network operator - 2007 - 2012
        • Table Estimated mobile broadband data downloaded in Petabytes - 2007 - 2012; 2015
      • Mobile broadband revenues
        • Table Estimated mobile broadband revenues and annual change - 2007 - 2012
        • Table Mobile broadband monthly ARPU - 2007 - 2012
      • Mobile broadband market
        • Table Estimated mobile data revenue revenues by mobile network operator - 2008 - 2012
      • Fixed wireless broadband market
        • Table Fixed wireless broadband subscribers by major operator - 2008 - 2012
        • Table WiFi hotspots at its peak in the late 2000s
    • FORECASTS AND OTHER DEVELOPMENTS
      • Watch out for the next WiFi wave
      • Mobile broadband boom the killer app FttH
      • 4G Wireless National Broadband Network (NBN) for regional Australia
      • Fixed/mobile call market
      • Revenue forecasts
        • Table Forecast mobile broadband and voice revenues - 2008; 2013; 2018
    • AUSTRALIA - MOBILE MEDIA - PREMIUM RATE SMS (PSMS) PORTALS AND APPS
  • MARKET FORECASTS
    • INDUSTRY TRANSFORMATION
    • FIXED INFRASTRUCTURE MARKET
    • WHOLESALE MARKET
    • THE RETAIL MARKET
    • PENETRATION FORECASTS
      • Roll out penetration
        • Table NBN take up rates first release sites
      • Broadband access penetration
        • Table Broadband uptake* scenario forecasts - 2015; 2020 (household penetration)
      • Fibre to connect 4.2 million in 2015
    • THE MOBILE MARKET
    • THE DIGITAL ECONOMY - TRANS-SECTOR MARKET
      • Forecasts - 2015; 2020
      • The digital media market
      • Business market survey
        • Table Impacts of the NBN on industry output at 2020 (% change)
    • BUSINESS MODELS AND MERGERS AND ACQUISITIONS (M&A)
      • Fixed market scenarios
      • Mobile market scenarios
  • GLOSSARY OF ABBREVIATIONS

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