Australia - Broadband - HFC Cable Networks

Synopsis

Hybrid Fibre Coax networks are communications networks that use a combination of optical fibres and coaxial cable. HFC networks support voice, data, and TV services. Network operators are upgrading their networks to stay competitive in the broadband market by offering very high bandwidth data services. There are two HFC network operators in Australia, Telstra and Optus, both serving customers in the large major metropolitan centres. In 2009 we estimate that there were 830,000 cable broadband subscribers, a penetration rate of around 15% of the total broadband market in Australia. Telstra has indicated it will seek to expand the number of services it provides over its HFC network to compete with fibre-based services provided on a wholesale basis by a National Broadband Network operator. At the end of 2009 Telstra launched very high-speed Internet services in Melbourne.. However, if the price of fibre-based services provided by the NBN operator is attractive to Telstra relative to the cost of servicing subscribers through an upgraded HFC network, then we may see Telstra abandon a strategy to upgrade the HFC in other major centres.

Table of Contents

• 1. Synopsis
  
• 2. Technology
  
  • 2.1 Hybrid Fibre Coax (HFC)
    
  • 2.2 The DOCSIS standard
    
• 3. Market statistics and forecasts
  
• 4. Telstra
  
  • 4.1 Overview
    
  • 4.2 DOCSIS 3.0 rollout
    
• 5. Optus
  
  • 5.1 Overview
    
• 6. Industry Analyses
  
  • 6.1 Telstra’s DOCSIS 3.0 broadband rollout
    
  • 6.2 No long-term future in HFC cable broadband
    
  • 6.3 From HFC to FttH
    
    • 6.3.1 HFC nearing the end of its economic life
      
    • 6.3.2 Lack of competition stifles innovation
      
    • 6.3.3 Consolidate the two networks and combine for competition
      
• 7. Cable modems versus xDSL
  
• 8. Related reports
  

• Table 1 – Cable broadband subscribers by operator and annual change – 2002 - 2010

• Exhibit 1 – HFC network status