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Australia - Fixed Broadband Market - Insights, Statistics and Analyses


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Australia - Fixed Broadband Market - Insights, Statistics and Analyses

Australia’s NBN preps for G.fast and DOCSIS3.1 services in 2017

Growth in the Australian fixed broadband market has slowed in line with higher penetration rates. Within the market there is a dynamic shift among customers to fibre networks, as this infrastructure is being built out by nbn (NBN Co), the company responsible for the national broadband deployment. While fibre has become by far the fastest growing sector, and DSL is beginning to slide as customers are migrated to the NBN, there is continuing solid growth in the cable broadband sector. This will be supported in coming years when nbn begins to offer commercial services based on the DOCSIS3.1 standard from mid-2017.

Although progress is improving, the fact that the NBN has been a tool for political brinkmanship over the years has cost the country dearly in time and wasted opportunities. Australia ranks relatively low in the global rankings for fixed-line broadband speeds, and during 2015 it fell in a number of tables covering these metrics. Rather than rolling out a first class infrastructure throughout the country, based on FttP, a second rate multi-technology mix has been adopted which incorporates copper infrastructure and assigns fibre to a minority of connections. By contrast, most developed countries have far further advanced their fibre projects, and are fast-tracking infrastructure developments to keep pace with customer demand for high-end IP-delivered services as well as to develop their international competitiveness and digital economies.

The deployment of FttP in greenfield estates is a fast-growing industry, supported by an updated regulatory regime and pricing models. By early June 2016 there were 268,290 greenfield sites passed, of which 162,670 were activated, as well as 1.481 million brownfield sites serviceable, of which 723,440 were activated. As a measure of the speed of deployment reached (compared to the doldrums of 2011), some 31,690 additional lots or premises were passed or covered by the NBN during the last week of May 2016, of which about 25,980 were in brownfield areas and 2,750 in greenfield sites.

The multi-technology NBN has left room for further development in the DSL and cable sectors, both of which are benefiting from the deployment of new technologies. nbn has trialled G.fast technology and expects to provide services based on this upgrade during 2017. HFC is also gaining a new lease of life, with nbn also preparing to trial DOCSIS3.1 technology with a view to commercialising services by mid-2017.

As well as these technological developments, consolidation within the broadband market will provide greater reach and scale for operators in coming years.

Key developments:

Fixed-line broadband traffic reaches 1,460 petabytes at end-2015;
nbn providing services to 1.481 million brownfield sites by June 2016;
Second SkyMuster satellite launched;
Telstra upgrades 13,227 exchanges for ADSL2+;
government adopts multi-technology mix for the NBN;
HFC moving forward with DOCSIS3.1;
nbn trialling G.fast technology;
Report update includes telcos’ operating data to Q1 2016, ACMA market report 2015, TIO’s 2015 annual report; Sensis survey 2015, ABS data to December 2015, Akamai broadband survey data to Q4 2015, recent market developments.

Companies mentioned in this report:

Optus, Telstra, nbn (NBN Co), iiNet, TPG, TransACT, M2, Primus, Exetel, Vodafone, Sensis, Foxtel, Neighbourhood Cable.


  • EXECUTIVE SUMMARY
  • GENERAL OVERVIEW AND MARKET INSIGHTS
    • MARKET DEVELOPMENTS
      • Broadband statistics
        • Table Historical - Total broadband subscribers and annual change - 2000 - 2009
        • Table Total broadband subscribers and annual change - 2010 - 2017
        • Table Broadband subscribers, DSL and cable -2008 - 2016
      • Forecasts - broadband subscribers - 2016; 2018; 2021
        • Table Forecast broadband subscribers - 2016; 2018; 2021
      • Market share by platform
        • Table Broadband market share by technology - 2008 - 2015
    • ACCESS REVENUES
      • Statistical overview
        • Table Broadband revenues by major provider - 2005 - 2015
        • Table Annual change in broadband access revenues by major provider - 2006 - 2015
        • Table Market share of broadband access revenues by major provider - 2005 - 2015
    • SURVEYS AND STATISTICS
      • Australian Bureau of Statistics (ABS) Survey - update December 2015
        • Table Proportion of population with internet connection, by platform - 2011 - 2015
        • Table Devices used for internet access - 2013 - 2015
      • Regional improvements
      • Statistical information by technology
        • Table NBN premises activated- 2014 - 2016
        • Table NBN premises activated by platform - 2014 - 2016
        • Table NBN premises serviceable by platform - 2014 - 2016
        • Table NBN fibre premises serviceable by type - 2012 - 2016
        • Table NBN fibre premises activated - 2011 - 2016
        • Table Wireless internet subscribers by access technology - 2009 - 2015
        • Table Fixed-line internet subscribers by access technology - 2009 - 2015
        • Table Business, government and household broadband internet subscribers - 2009 - 2014
        • Table Business, government and household dial-up internet subscribers - 2009 - 2014
        • Table Business, government and household total internet subscribers - 2009 - 2014
      • Broadband speeds
        • Table Subscribers' average broadband speed - 2010 - 2015
        • Table Proportion of internet subscribers by download speed - 2009 - 2015
        • Table Internet subscribers by download speed - 2008 - 2015
        • Table Average SVoD streaming speed by ISP - 2015 - 2016
      • Broadband traffic
        • Table Terabytes of data downloaded by access technology - 2008 - 2015
        • Table Annual change in data downloaded by access technology - 2011 - 2014
        • Table Average data downloaded per subscriber (fixed-line and mobile) - 2013 - 2015
    • ISP MARKET OVERVIEW
      • The market going forward
      • Data limiting
      • ISP market statistics
        • Table Number of ISPs by size in the Australian market - 2008 - 2015
        • Table Internet subscribers by key providers - 2013 - 2015
  • STATISTICAL OVERVIEW OF THE DSL MARKET
    • BRIEF OVERVIEW OF THE NBN
    • REGULATORY ENVIRONMENT - ANALYSIS
      • The impact of fibre optic networks on digital subscriber line (DSL) regulation
      • Unbundling of the local loop (ULL) and Bitsream Access
      • Wholesale DSL pricing
        • Table Wholesale DSL pricing, per month per user - 2013 - 2014
    • DSL INFRASTRUCTURE
      • Overview
        • Table DSL broadband subscribers -2008 - 2017
        • Table DSL subscribers and availability by state/territory - 2013
        • Table DSL premises affected by distance from exchange - 2013
      • Tool for competitors
      • DSLAM infrastructure
        • Table Number of DSLAMs by major providers - 2009 - 2012; 2014
        • Table Total number of DSLAMs - 2006 - 2014
        • Table Number of ADSL and ADSL2+-enabled exchanges - 2013 - 2016
        • Table Fibre Access Broadband (FAB) exchanges - November 2015
      • Street cabinet IP DSLAM2 upgrades (Top Hat)
        • Table Top Hat enabled exchanges - 2011 - 2013
      • FttN and VDSL
      • G-fast developments
    • BRIEF OVERVIEW OF BROADBAND PROVIDERS MARKET
      • Market consolidation
      • The shrinking number of ISPs
      • Market share statistics
        • Table Broadband DSL retail subscribers by major provider - 2011 - 2015
        • Table Total business and residential broadband subscribers - 2006 - 2015
        • Table Telstra broadband subscribers by sector - 2007 - 2015
  • STATISTICAL OVERVIEW OF THE HFC MARKET
    • TECHNOLOGY
      • Hybrid Fibre Coax (HFC)
      • The DOCSIS standard
      • The next development for DOCSIS
      • Can Cable Networks Deliver a Gigabit?
      • HFC DOCSIS vs. fibre
    • NBN - HFC PROGRAM
      • Statistical overview
        • Table HFC Roll out 2016-2018
        • Table Weighted average cost per HFC premise (rounded nearest $100)
      • Overall plan
      • FttN and FTTB as infills for HFC
      • Arris appointed supplier of the network
      • Roll out plan
      • HFC pilot in Queensland
    • MARKET STATISTICS AND ESTIMATES
      • Table HFC cable broadband subscribers - 2012 - 2017
      • Table Cable broadband subscribers by major operator and annual change - 2002 - 2015
      • Table Cable subscribers versus other broadband technologies - 2009 - 2015
    • TELSTRA
      • Background information
      • Network upgrades
    • OPTUS
      • Overview
        • Table Optus financial data - 2011 - 2016
        • Table Optus financial data by sector - 2009 - 2016
        • Table Optus on-net broadband subscribers - 2009 - 2016
    • IINET/TRANSACT
      • Overview
    • BES/E-WIRE
    • AUSTAR UNITED COMMUNICATIONS (AUSTAR)
    • INDUSTRY ANALYSIS
      • DOCSIS3.0 -v- DOCSIS 3.1
      • Do we need infrastructure-based competition?
      • Moving on from the HFC of the past
      • HFC incorporated in multi-technology NBN
      • From HFC to Fibre-to-the-Premises (FttP)
      • Open access policy
      • Superfast Broadband Access Service (SBAS)
  • THE NATIONAL BROADBAND NETWORK
    • FTTH, FTTB ROLL OUTS
      • Introduction
      • Statistical overviews
        • Table NBN - Rollout as per June 2016
        • Table FttP /FttN Brownfields Rollouts 2014 - 2016
        • Table FttP Greenfields Rollouts 2014 - 2016
        • Table FttH Premises Ready for Service 2014-2018
        • Table FttH Premises Activated 2014 - 2018
        • Table FttH Weighted average cost per premise by technology (rounded to the nearest 100)
      • Fibre-to-the-Basement (FttB)
      • Other developments
        • Table Brownfields cost per premises
      • The difference between FttH and FttP
    • FTTN AND VDSL NETOWORKS
      • Statistical overviews
        • Table NBN uptake rates FttP and FttN
        • Table FttN Roll Out 2014-2018 (cumulative (`000)
        • Table FttN - Weighted average cost per premise by technology (rounded nearest $100)
      • Telstra aims at 1 million NBN market share
      • G.Fast
      • The VDSL Market
      • VDSL infrastructure analysis
        • Table Capex and Opex savings for different network sharing deployment models
      • Fibre-to-the-Distribution-Point (FTTDP)
      • Strategic Analysis
      • Australia's high international broadband costs
  • THE FTTP GREENFIELD MARKET
    • THE FTTP GREENFIELD MARKET MOVING IN 2016
      • Table FttP Greenfields Rollouts 2014 - 2016
    • GREENFIELD POLICIES
      • New greenfield policy comes into play
      • Historic Overview
    • NBN GREENFIELD MARKET DEVELOPMENTS
      • Industry took the early initiative
      • Reviews and Restructuring
    • ROLLOUT DEVELOPMENTS OF NBN
      • Table Total internet subscribers - 2011 - 2015
      • Sydney's Doonside first to connect to the NBN
      • Nationwide roll out
        • Table NBN cost per Premises - 2014 - 2015
      • Greenfield construction contracts
    • FIBRE WHOLESALE FROM TELSTRA
    • MAJOR PLAYERS
      • LBNCo
      • OPENetworks
      • OptiComm
      • Pivit
      • RedTrain
      • Other smaller providers
  • BUSINESS BROADBAND MARKET, STATISTICS AND ANALYSIS
    • MARKET TRENDS
      • Business market overview
        • Table Online business revenue - 2013 - 2015
        • Table Business, government and household dial-up subscribers - 2009 - 2015
        • Table Business, government and household broadband subscribers - 2009 - 2014
        • Table Business, government and household total internet subscribers - 2009 - 2014
      • ISPs targeting the business sector
      • Broadband a stimulus to business progress
      • Business adoption of VoIP
      • The NBN and the business market
      • Business need faster speeds to communicate
        • Table Business uptake of broadband by access type - 2010 - 2014
      • The effects of broadband on business and government
    • BUSINESS MARKET SURVEYS
      • NBN Business Readiness Surveys
      • Small Business Telecommunications Service Use and Experience
      • Surveys reveal that moving online benefits businesses
        • Table SME online trends - websites versus social media - 2010 - 2015
      • Telstra Productivity Indicator
      • Sensis - e-business report
        • Table Historic - SME computer equipment ownership trends - 1999 - 2004
        • Table SME computer equipment ownership trends - 2005 - 2015
        • Table Computer hardware expenditure - SMEs and medium businesses - 2001 - 2014
        • Table Business trends in internet connections - 1998 - 2015
        • Table SMEs internet access methods, by technology - 2010 - 2015
        • Table Top uses of the internet by SMEs - 2011 - 2015
        • Table Proportion of SMEs with social media presence - 2011 - 2015
      • Optus Future of Business Report
        • Table Business focus on digital engagement - 2014 - 2016
        • Table Expectations of customer e-payments - 2011 - 2012; 2015-17
        • Table Priorities driving business investments - 2014
        • Table Areas of future business investments - 2014 - 2016
    • BUSINESS CUSTOMER EXPENDITURE ON TELECOMS
      • Overall telecom spend - business market
        • Table Estimated telco product mix of business customer spend - 2015
      • SME market statistics
        • Table Revenue mix - total spend of telecoms - SME market - 2015
  • RESIDENTIAL BROADBAND MARKET STATISTICS AND ANALYSIS
    • STATISTICAL OVERVIEW RESIDENTIAL MARKET - TOTAL TELECOMS
      • Table Revenue mix - total spend of telecoms - residential market - 2016 (e)
    • INTERNET HOUSEHOLD STATISTICS
      • Australian Bureau of Statistics (ABS) surveys and internet connectivity
        • Table Historic - Total households versus internet enabled households - 1999 - 2009
        • Table Total households versus internet enabled households - 2010 - 2016
        • Table Broadband component of internet enabled households - 2005 - 2016
        • Table Proportion of internet households with children - 2005 - 2009; 2010 - 2014
        • Table Internet access households with children - 2005 - 2009; 2010 - 2014
    • TRENDS IN THE RESIDENTIAL MARKET
      • Data increases in volume
        • Table Fixed-line broadband data usage by users - 2008 - 2015
        • Table Household/individual broadband connections - 2012 - 2014
      • Mobile broadband - no alternative to fixed line services.
      • Dial-up internet continues its decline
        • Table Historic - Dial-up and broadband internet subscribers - 2003 - 2009
        • Table Dial-up and broadband internet subscribers - 2010 - 2017
    • HOUSEHOLD USE OF TECHNOLOGY
      • Computer technologies
        • Table Computerisation in the home - 2012 - 2015
        • Table Technology use in the home - 2012 - 2015
      • Broadband technologies
      • Internet social media activities
        • Table Proportion of the population using social networking sites - 2011 - 2016
    • OTHER RESIDENTIAL MARKET SURVEYS
      • Online services
        • Table Top 5 online applications - 2013 - 2015
        • Table Use of internet applications - 2010 - 2015
      • Customer service issues and the Telecommunications Industry Ombudsman (TIO)
        • Table New complaints to the TIO per 10,000 services in operation - 2013 - 2016
        • Table Total new complaints to the TIO - 2006 - 2015
        • Table Number of investigations by the TIO, by levels - 2009 - 2015

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