Market Research Logo

Australia - Fixed Broadband Market - Insights, Statistics and Analyses

Australian National Broadband Network rollout finally gains momentum
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. Australia’s broadband sector is making improved progress in its migration to a multi-technology the NBN.
Growth in the overall number of broadband subscribers is expected to continue to slow further into 2018, with most growth coming from the mobile wireless and fibre broadband markets, due to increased uptake by the NBN in these two segments.
The DSL sector is expected to shrink as customers are migrated to the NBN in areas where services become available, while subscribers on HFC infrastructure will continue to be provided by existing cable within the NBN’s multi-technology mix.
Internationally, the adoption of broadband ranks Australia below many other developed countries, however it has seen a moderate increase over the past two years due to the continued rollout of the NBN.
Consolidation within the broadband market, with some key acquisitions having taken place among fixed broadband service providers, will provide greater reach and scale for operators in coming years.
By 2016 FTTH still dominated the NBN statistics with 75% of all NBN subscribers using this technology. However, this will change rapidly over coming years as the FTTH roll out comes to an end (with the exception of greenfield connections). The nbn announced in December 2016 it was ready to deploy its “multi-technology mix” (MTM), offering a mix of FTTH, FTTB and FTTN in new housing estates. By 2017 FTTN and HFC began to dominate the NBN scene and by 2017 it was closer to 50% of all activated services that were FTTH / FTTN.
The nbn revealed plans to begin deploying “skinny fibre” (thinner fibre cables) in new housing estates from 2017/2018.
The deployment of FTTH in greenfield estates is a fast-growing industry, supported by an updated regulatory regime and pricing models. Recent legislation provides the framework for all new major housing sites to be supplied with FTTH infrastructure, or to be made ready (pit and pipe) for such deployment. The nbn has in place measures aimed at improving competition, minimising costs, and providing a level playing field for participants in this sector. Controversially, developers and home owners will be charged for the infrastructure costs in new housing developments.
The current NBN plan provides a multi-technology mix rather than be predominantly FTTH. Under the new scheme, FTTH will connect 20% of premises by 2020, while a further 38% will be served by FTTN - using the VDSL technology - and another 34% of will receive services via existing HFC networks. Using this approach, the government anticipated that 91% of premises connected to fixed-line infrastructure would receive 50Mb/s by 2020. The capital cost was put at $29.5 billion (US$27.4 billion).
The roll out of FTTN didn’t start until late 2015 and by April 2017 the service has 676,000 subscribers. However, this number is set to increase rapidly over coming years.
In 2016 nbn announced it would entirely abandon its plan to use the Optus Hybrid Fibre Coaxial (HFC) network to deliver high-speed broadband. It is now confident it can deploy the Fibre-to-the-curb (FTTC), technology in areas where it makes better sense from a customer experience, deployment efficiency and cost perspective, rather than upgrading the old network. The nbn will however still be using Telstra’s more extensive HFC network as planned and is still aiming for an HFC footprint of between 2.5 and 3.2 million premises by 2020.
The HFC networks of Telstra and Optus’s are being deployed as part of the NBN, so reducing the overall cost of the project’s rollout. However, the nbn’s Corporate Plan for 2017 envisages greater use of FTTC in HFC areas, given the mounting cost of connecting premises with HFC.
In international terms, the capabilities of HFC in Australia remain comparatively low, and there is considerable scope for improvement. In Europe, HFC networks commonly deliver data at up to 360MB/s, while some networks (such as Vodafone’s in Germany) deliver data at 400Mb/s.
The nbn is expected to operate services based on the DOCSIS3.1 during 2018, capable of delivering data at 1Gb/s. It is also actively looking at other cable networking advances such as full-duplex DOCSIS technology, which is capable of 10Gbps symmetrical speeds.
The nbn has confirmed FTTC, would be deployed to a potential footprint of up to 700,000 premises across the country. The expanded FTTC footprint fills the void left by the nbn’s decision not to use the Optus HFC cable assets, although it will still be using Telstra’s more extensive HFC network as planned. The nbn is however still aiming for an HFC footprint of between 2.5 and 3.2 million premises by 2020, using the Telstra assets.

Key developments:

Growth will come from the mobile wireless and fibre broadband markets.
DSL sector is expected to shrink.
HFC infrastructure will continue to be provided within the nbn’s multi-technology mix.
Consolidation within the broadband market will provide greater reach and scale.
nbn will begin deploying “skinny fibre” in new housing estates from 2017/2018.
The deployment of Fibre-to-the-Premises in greenfield estates is a fast-growing industry.
nbn will operate services based on the DOCSIS3.1 during 2018, capable of 1Gb/s.
Fibre-to-the-curb (FTTC) will deployed to a potential footprint of up to 700,000 premises.

Key companies mentioned in this report:

Optus, Telstra, nbn (NBN Co), iiNet, TPG, TransACT, M2, iiNet, Optus, Primus, LBNCo, OPENetworks, OptiComm, RedTrain, Pivit, Foxtel.


  • EXECUTIVE SUMMARY
  • MARKET OVERVIEW AND STATISTICS
    • MARKET ANALYSIS AND DEVELOPMENTS
      • Market Analysis
      • Regional improvements
      • Data limiting
    • FIXED BROADBAND - SUBSCRIBER STATISTICS
      • Total Market statistics
        • Table Total Broadband Subscribers - Fixed vs Wireless - 2011 - 2017
        • Table Total Broadband Subscribers - Fixed vs Wireless, annual growth - 2012 - 2017
        • Table Total Broadband Subscribers - Fixed vs Wireless, market share - 2011 - 2017
        • Table Historical - Total broadband subscribers and annual change - 2000 - 2011
      • Market share statistics by platform
        • Table Total Broadband Subscribers by Access Type - 2011 - 2016
        • Table Total Broadband Subscribers by Access Type, annual growth - 2012 - 2016
        • Table Total Broadband Subscribers by Access Type, market share - 2011 - 2016
        • Table Fixed Broadband Subscribers - DSL, Cable, Fibre - 2011 - 2016
        • Table Historical - Broadband market share by technology - 2008 - 2015
      • Market share statistics by Provider
        • Table Fixed Broadband retail subscribers (thousands) by major provider - 2010 - 2016
        • Table Fixed Broadband retail subscriber annual growth by major provider - 2011 - 2016
        • Table Fixed Broadband retail subscribers market share by major provider - 2014 - 2016
        • Table Historic - Total business and residential broadband subscribers
        • Table Telstra broadband subscribers by sector - 2007 - 2016
      • Access revenues
        • Table Historic - Broadband revenues by major provider - 2005 - 2015
        • Table Historic - Annual change in broadband access revenues by major provider - 2006 - 2015
        • Table Historic - Market share of broadband access revenues by major provider - 2005 - 2015
    • FIXED BROADBAND MARKET CONSOLIDATION
      • Table Number of ISPs by size in the Australian market - 2008 - 2017
    • FORECASTS - FIXED BROADBAND SUBSCRIBERS - 2016; 2018; 2021
      • Table Australia - fixed broadband subscriber forecast- 2016; 2018; 2021
    • STATISTICS
      • Broadband Subscribers by Business, Government and Household
        • Table Historic - Business, government and household broadband internet subscribers – 2009 - 2014
      • Broadband speeds
        • Table Subscribers' average broadband speed - 2010 - 2017
        • Table Average SVoD streaming speed by broadband service provider (Mb/s) - 2015 - 2017
        • Table Internet subscribers by download speed and proportion of subscribers - Dec 2016
        • Table Historic - Proportion of internet subscribers by download speed - 2009 - 2015
        • Table Historic - Internet subscribers by download speed - 2008 - 2015
      • Broadband traffic
        • Table Terabytes of data downloaded by access technology - 2008 - 2016
        • Table Annual change in data downloaded by access technology - 2011 - 2016
        • Table Average data downloaded per subscriber (fixed-line and mobile) - 2013 - 2016
    • AUSTRALIAN BUSINESS BROADBAND MARKET
  • NATIONAL BROADBAND NETWORK
    • BRIEF OVERVIEW OF THE NBN
    • NBN STATISTICS
      • Table NBN premises activated- 2014 - 2017
      • Table NBN premises activated by platform - 2016 - 2017
      • Table NBN premises serviceable by platform - 2016 - 2017
      • 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
    • NBN MAKING PROGRESS BUT DARK CLOUDS AHEAD
    • CORPORATE PLANS
      • NBN Corporate Plan 2017
      • NBN Corporate Plan for the period 2014 - 2018
        • Table Premises Ready for Service 2014-2018
        • Table Premises Activated 2014 - 2018
        • Table Technology mix - 2020
        • Table Weighted average cost per premise by technology
        • Table Key financial statistics NBN company
        • Table NBN 2018 target by state - Estimated number of premises under construction by
  • GLOBAL TRENDS
    • GOOGLE FIBER AND THE FUTURE OF FTTH
    • BROADBAND SUBSCRIBERS AND PENETRATION
      • Table Global - fixed broadband subscribers and annual change - 2005 - 2017
      • Table Regional - average fixed broadband prices - 2015
      • Table Regional - market shares of fixed broadband subscribers - 2016
      • Table Regional - historical market shares of fixed broadband subscribers - 2014; 2015
      • Table Top 10 countries by fixed broadband subscribers and global market share - 2016
    • BROADBAND ACCESS TECHNOLOGIES
      • Table Global - broadband market share by access technology - 2013; 2016
    • BROADBAND SPEEDS
      • Table Global - average broadband speed by mb/s - 2012 - Q1 2017
      • Table Top 10 countries by average broadband connection speeds - Q1 2017
      • Table Top 10 countries by high broadband connectivity of above 10Mb/s - 2015; 2016
      • Table Top 10 countries by high broadband connectivity of above 15Mb/s - 2016
  • DSL MARKET
    • DSL INFRASTRUCTURE
      • Overview
        • Table DSL broadband subscribers - 2008 - 2017
        • Table Historic - DSL subscribers and availability by state/territory - 2013
        • Table Historic - DSL premises affected by distance from exchange - 2013
      • DSLAM infrastructure
        • Table Historic - Number of DSLAMs by major providers
        • Table Historic - Total number of DSLAMs
        • Table Number of ADSL and ADSL2+-enabled exchanges - 2013 - 2016
        • Table Fibre Access Broadband (FAB) exchanges - November 2015
      • FttN and VDSL
  • FTTH, FTTB MARKETS
    • INTRODUCTION
    • NBN STATISTICS - FTTH
      • Table NBN revenue statistics FttH - FY 2013-2016
      • Table FttH subscriber statistics - 2013-2017
      • Table Annual FttH capital expenditure - FY 2013-2016
      • Table FttH Cost per premise - FY 2014-2016
      • Table FttH Greenfields rollouts 2014 - 2016
      • FttH statistical overview 2014-2018
        • 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)
      • Migration of business services
    • RECENT DEVELOPMENTS
      • Greenfields ready for deployment of MTM
      • Skinny Fibre to be deployed in New Housing Estates from 2017
    • FIBRE-TO-THE-BASEMENT (FTTB)
      • Multi dwelling units
      • TPG
      • Telstra tests FTTB product
    • OTHER DEVELOPMENTS
      • NBN Co outlines policies for fibre-on-demand
      • Cost of a NBN brownfields FTTH connection
    • FIBRE WHOLESALE FROM TELSTRA
    • FTTH MAJOR PLAYERS
      • LBNCo
      • OPENetworks
      • OptiComm
      • Pivit
      • RedTrain
      • Other smaller providers
  • FTTH GREENFIELD MARKET
    • OVERVIEW
      • Table FttP Greenfields Rollouts 2014 - 2016
    • GREENFIELD POLICIES
      • NEW GREENFIELD POLICY COMES INTO PLAY
    • GREENFIELD 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
      • Greenfields extension contract
  • FTTN MARKET
    • FTTH, FTTN STATISTICS
      • Table FttN expenditure - 2014 - 2016
      • Table NBN uptake rates FttH and FttN
      • FttN overview 2014-2018
        • Table FttN Roll Out 2014-2018 (cumulative (`000)
        • Table FttN - Weighted average cost per premise by technology (rounded nearest $100)
    • MARKET ANALYSIS
      • High-speed broadband take-up is increasing
      • Video explosion pushing fixed broadband
    • FIBRE-TO-THE-DISTRIBUTION-POINT / FIBRE-TO-THE CURB
      • Overview
      • Analysis
    • TELSTRA AIMS AT 1 MILLION NBN MARKET SHARE
    • G.FAST AND XG.FAST
      • G.Fast Overview
      • Analysis - NBN's `not.so.Fast' G.Fast
      • XG.FAST - still years away
    • THE VDSL MARKET
      • VDSL developments
      • VDSL vectoring
  • HFC MARKET
    • MARKET OVERVIEW
    • TECHNOLOGY
      • Hybrid Fibre Coax (HFC)
      • The DOCSIS standard
      • The next development for DOCSIS
      • Can Cable Networks Deliver a Gigabit?
      • NBN Indicates Upgrade path for HFC
      • HFC DOCSIS vs. fibre
    • NBN - HFC PROGRAM
      • Statistical overview
        • Table HFC Roll out plan 2016-2018
        • Table HFC Current Roll out status - 2016 - 2017
        • Table Weighted average cost per HFC premise (rounded nearest $100)
        • Table NBN capital expenditure - FY2015-2016
      • Overall plan
      • FttN and FTTB as infills for HFC
      • FTTdp to be used instead of Optus HFC network
      • 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 - 2017
    • TELSTRA
      • Background information
      • Network upgrades
    • OPTUS
      • Overview
        • Table Optus on-net broadband subscribers - 2009 - 2017
    • IINET/TRANSACT
    • BES/E-WIRE
    • HFC NETWORK DARWIN
    • INDUSTRY ANALYSIS
      • DOCSIS3.0 -v- DOCSIS3.1
      • Superfast Broadband Access Service (SBAS)

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report