2018 Australia - Fixed Broadband Market - Insights, Statistics and Analyses

Last updated: 12 Nov 2018 Update History

Report Status: Archived

Report Pages: 183

Lead Analyst: Phil Harpur

Contributing Analyst: Paul Budde

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Summary
Table Of Contents

Publication Overview

This report reviews a range of statistics and trends in the Australian fixed broadband market, including market share for major fixed broadband providers, market share by major broadband category (DSL, Cable, Fibre, Satellite and Fixed wireless) and market forecasts to 2023. The report examines how there is a shift towards FTTH, FTTN and FTTP networks as Australia’s nbn is progressively rolled out and how the market will move away from DSL. It will show how HFC infrastructure will continue to be provided within the nbn’s multi-technology mix.

The report also incorporates key statistics for the rollout of Australia’s NBN.

The report also analyses the drivers behind broadband adoption within the Australian residential and business sectors and notes the shift to a market more dominated by mobile devices.

It provides an overview of fibre operators, as well as statistics on the FTTP market and a review of developments related to DSL and HFC infrastructure as well as satellite broadband.

Researchers:- Phil Harpur
Current publication date:- November 2018 (17th Edition)

Executive Summary

The DSL market shrinks as the NBN is further rolled out

Within the Australian fixed broadband 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 National Broadband Network (NBN).

Australia’s NBN is delivered via a multi-technology mix (MTM) to homes and businesses including: fibre to the premises (FTTP), fibre to the building (FTTB), fibre to the node (FTTN), Hybrid Fibre Coaxial (HFC), fixed wireless and satellite.

The purpose of the company nbn is to build a nationwide, wholesale-only, high-speed, affordable open broadband network. NBN Co was rebranded as nbn, the company overseeing Australia’s National Broadband Network (NBN) project. As it does not provide telecommunications services to retail customers, the market opened up existing and new licensed RSPs (Retail Service Providers).

The NBN will increase Australia’s GDP by up to $10 billion and create up to 150,000 new jobs nationally in the digital industry by 2021. The establishment of businesses in areas served by the NBN so far grew at twice the rate of the national average and five times the pace of regions without the network.

NBN Co announced plans in 2018 to be able to more efficiently deploy fibre to the curb (FTTC) services instead of its more conventional DSLAM-based fibre to the basement (FTTB) services when connecting smaller multi-dwelling units (MDUs).

The annual growth rate in the overall number of broadband subscribers is expected to continue to slow into 2019, with most growth coming from the mobile wireless and fibre broadband markets, due to increased uptake by the nbn is 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. Commercial cable services based on the DOCSIS3.1 standard are anticipated in 2018-19.

The DSL sector is still showing resilience as operators make greater use of VDSL, while nbn has trialled G.Fast technology and expects to provide services shortly.

The fixed-line broadband market continues to grow steadily as the nbn rollout gains momentum, although overall penetration is predicted to grow slowly over the next five years to 2023.

Internationally, the adoption of broadband ranks Australia below many other developed countries, however the Australian market 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.

The industry has started to seriously question the regulatory environment around the NBN. The smaller players believe they are in danger of being squeezed out of the market through complex and expensive NBN wholesale offerings. These same arrangements also mean that the end-users are not receiving the benefits of high-speed broadband in an affordable form.

NBN Co has revealed plans to begin deploying “skinny fibre” (thinner fibre cables) in new housing estates from 2017-2018.

The National Broadband Network announced it would entirely abandon its plan to use the Optus Hybrid Fibre Coaxial (HFC) network to deliver high-speed broadband. NBN will however still be using Telstra’s more extensive HFC network as planned.

Key Developments

NBN Co deploy fibre to the curb (FTTC) services instead of DSLAM-based fibre.
NBN Co will deploy “skinny fibre” (thinner fibre cables)
The NBN will increase Australia’s GDP by up to $10 billion.
The DSL sector is expected to shrink as customers are migrated to the NBN.
Consolidation within the fixed broadband market has occurred over the past few years.
The annual growth rate in the fixed broadband market is expected to continue to slow over the next five years to 2023.

Key companies mentioned in this report:

NBN; Austar; Ericsson; Visionstream; Optus, iiNet, AUSTAR, Foxtel, Neighbourhood Cable, TransACT. Optus, Telstra, nbn (NBN Co), LBNCo, OPENetworks, OptiComm, RedTrain, Pivit, Fibercorp

Phil Harpur

November 2018

Fixed broadband market – overview and statistics

Market analysis
National Broadband Network (NBN)
Fixed broadband market consolidation
Fixed broadband – subscriber statistics and forecasts

Total market statistics
Market share statistics by platform
Market share statistics by provider
Internet usage trends
Household usage survey - 2018
Fixed broadband subscriber Forecast

Other broadband statistics

Broadband speeds
Broadband traffic

Australian business broadband market
DSL infrastructure
WiFi market

Introduction
Venue WiFi - Campuses, hotels, public areas
Telstra Air - National WiFi network
Optus
State projects
City and regional projects
WiFi in Airlines

National broadband network

Overview
Corporate plan - 2019-2022
Wholesale provider overview
Market analysis
Regional improvements
NBN Market statistics

Revenue Statistics
Subscriptions
Broadband market share by provider

Fibre-to-the-Premises (FTTP)

Statistics
Major players
Historical developments
Greenfield estates

Fibre-to-the-Basement (FTTB)
Fibre-to-the-Node (FTTN)
Fibre-to-the-Curb (FTTC)
G.Fast and XG.Fast
HFC (Cable) Networks

Hybrid Fibre Coax (HFC) - Technology
HFC – NBN Developments
NBN statistics
Operator statistics
HFC operators

Fixed wireless networks

Overview
Network rollout
Market analysis
Fixed wireless statistics

The NBN satellite network

SKY MUSTER
Ka-band satellites
Contracts
Telstra
Viasat

Fixed broadband service providers

Telstra

Company overview
Financial and operating statistics
Strategy update – 2018
Company analysis - 2017
Strategy update - 2016
Network upgrade

Optus

Company overview
Company analysis
Financial and operating statistics
Infrastructure overview
Products and services
Major subsidiaries

TPG Telecom Limited

Company overview
Company analysis
Company acquisitions
Company investments
TPG to become the fourth mobile operator in Singapore
Fibre network
National network
Financial statistics
Operational statistics

Vocus

Overview
Company strategy update – late 2017
Company analysis
Financial results
Operations results
Acquisitions / Mergers
Network
Products and services

Macquarie Telecom

Company overview
Financial results

Vodafone

Fixed line NBN offering

List of Tables

Table 1 – Number of ISPs by size in the Australian market – 2008 – 2017
Table 2 – Total broadband subscribers – Fixed vs Wireless – 2011 – 2018
Table 3 – Total broadband subscribers – Fixed vs Wireless, annual growth – 2012 – 2018
Table 4 – Total broadband subscribers – Fixed vs Wireless, market share – 2011 – 2018
Table 5 – Historic - Total broadband subscribers and annual change – 2000 – 2011
Table 6 – Total broadband subscribers by access type – 2011 – 2018
Table 7 – Total broadband subscribers by access type, annual growth – 2012 – 2018
Table 8 – Total broadband subscribers by access type, market share – 2011 – 2018
Table 9 – Fixed broadband subscribers – DSL, Cable, Fibre – 2011 – 2018
Table 10 – Historic - Broadband market share by technology – 2008 – 2015
Table 11 – Fixed broadband retail subscribers (thousands) by major provider – 2010 – 2018
Table 12 – Fixed broadband retail subscriber annual growth by major provider – 2011 – 2018
Table 13 – Fixed broadband retail subscribers market share by major provider – 2014 – 2018
Table 14 – Historic - Total business and residential broadband subscribers – 2006 – 2014
Table 15 – Telstra broadband subscribers by retail / wholesale – 2007 – 2018
Table 16 – Accessing the Internet by Service, Usage Patterns – 2013; 2017
Table 17 – Fixed broadband Subscribers (with Forecast) – 2010 – 2023
Table 18 – Subscribers’ average broadband speed – 2010 – 2017
Table 19 – Average SVoD streaming speed by broadband service provider (Mb/s) – 2015 – 2017
Table 20 – Internet subscribers by download speed – 2016 – 2018
Table 21 – Historic – Proportion of internet subscribers by download speed – 2009 – 2015
Table 22 – Historic – Internet subscribers by download speed – 2008 – 2015
Table 23 – Volume of data downloaded (Terrabytes) by access connection – 2013 – 2018
Table 24 – Historic – Terabytes of data downloaded by access technology – 2008 – 2016
Table 25 – Historic – Annual change in data downloaded by access technology – 2011 – 2016
Table 26 – Historic – Average data downloaded per subscriber (fixed-line and mobile) – 2013 – 2016
Table 27 – DSL broadband subscribers – 2008 – 2018
Table 28 – NBN revenue ($million) statistics – 2013 - 2018
Table 29 – NBN ARPU – 2013 – 2018
Table 30 – NBN capital expenditure – 2013 – 2018
Table 31 – Cost per premises – 2014 -2017
Table 32 – Historic – Property, plan, equipment and intangible assets
Table 33 – NBN premises activated, Ready for Service (thousands) – 2011 – 2018
Table 34 – Cumulative end user subscriptions by technology – 2013 – 2018
Table 35 – Market share – subscriptions – 2013 – 2018
Table 36 – Cumulative premises Ready For Service – 2016 – 2017
Table 37 – Historic – Market share premises Ready For Service – 2016 – 2017
Table 38 – Fixed Line Speed Tier Mix – 2016 – 2017
Table 39 – Fixed Wireless Speed Tier Mix – 2016 – 2017
Table 40 – Sky Muster satellite service speed tier mix – 2016 – 2017
Table 41 – NBN premises activated by platform – 2016 – 2017
Table 42 – NBN premises serviceable by platform – 2016 – 2017
Table 43 – Historic – NBN premises activated by platform – 2014 – 2016
Table 44 – Historic – NBN fibre premises serviceable by type – 2012 – 2016
Table 45 – Historic – NBN fibre premises activated – 2011 – 2016
Table 46 – FTTP – Market Share – by Provider – June 2018
Table 47 – FTTB -- Market Share – by Provider – June 2018
Table 48 – FTTN– Market Share – by Provider – June 2018
Table 49 – HFC – Market Share – by Provider – June 2018
Table 50 – Wireless – Market Share – by Provider – June 2018
Table 51 – Satellite – Market Share – by Provider – June 2018
Table 52 – NBN revenue statistics FTTP / FTTP– FY 2013 – 2017
Table 53 – FTTP subscriber statistics – 2013 – 2018
Table 54 – Annual FTTP / FTTP capital expenditure – FY 2013 – 2017
Table 55 – FTTP Cost per premise – FY 2014-2016
Table 56 – FTTP Greenfields rollouts 2014 – 2016
Table 57 – FTTP Greenfields Rollouts 2014 – 2016
Table 58 – FttN expenditure – 2014 – 2016
Table 59 – HFC Roll out plan 2016 – 2018
Table 60 – HFC Current Roll out status – 2016 – 2017
Table 61 – Weighted average cost per HFC premise (rounded nearest $100)
Table 62 – NBN capital expenditure – FY2015 – 2017
Table 63 – HFC– Market Share – by Provider – June 2017
Table 64 – Cable broadband subscribers by major operator and annual change – 2002 – 2018
Table 65 – Optus on-net broadband subscribers – 2009 – 2018
Table 66 – NBN Cost per premises fixed wireless – FY 2014 – 2017
Table 67 – FTTH Wireless Rollouts FY 2014 – 2017
Table 68 – NBN Capital expenditure fixed wireless – FY 2013 – 2017
Table 69 – NBN ARPU Fixed wireless – FY 2014-2016
Table 70 – Satellite Rollouts 2014 – 2016
Table 71 – Telstra Group – Top Line Annual Financial Results – 2005 – 2017
Table 72 – Telstra Group – Revenue ($billion) by Product Segment and Annual Change – 2015 – 2017
Table 73 – Telstra Group - Revenue ($billion) by Operations Segment and Annual Change – 2015 – 2017
Table 74 – Telstra Group – Mobile Handset ARPU by prepaid, postpaid– 2016 – 2017
Table 75 – Telstra Group – Capital Expenditure – 2009 – 2017
Table 76 – Telstra – Mobile subscribers (millions) by prepaid, postpaid – 2008 – 2017
Table 77 – Telstra broadband subscribers by sector – 2007 – 2016
Table 78 – Overview of Optus overall operating revenue summary – 2000 – 2018
Table 79 – Optus revenue – 2012 – 2018
Table 80 – Optus Group – Financial Results - Division – 2014 – 2018
Table 81 – Optus – Key Operating Statistics - 2015 – 2018
Table 82 – Historic – Optus consumer and business fixed telephony statistics – 2009 – 2017
Table 83 – Historic – Total internet subscribers (broadband and dialup) – 1996; 1998; 2000 – 2008
Table 84 – iiNet’s acquisitions – 2003 – 2014
Table 85 – TPG Revenue, EBITDA and NPAT– 2001 – 2017
Table 86 – TPG – revenue ($ million) breakdown by division – 2009 – 2017
Table 87 – TPG – consumer segment revenue ($ million) – 2016 – 2017
Table 88 – TPG – corporate segment revenue ($ million) – 2016 – 2017
Table 89 – TPG – Broadband ARPU ($/month) – 2016 – 2017
Table 90 – iiNet – Broadband ARPU ($/month) – 2016 – 2017
Table 91 – TPG consumer – revenue breakdown by market segment (consumer) – 2010 – 2016
Table 92 – TPG – Revenue by Division – 2016
Table 93 – Historic - TPG – broadband ARPU – 2009 – 2016
Table 94 – TPG – Group Broadband Subscribers (thousands) by Division– 2014 – 2017
Table 95 – TPG – Consumer Broadband Subscribers (thousands) by Product – 2014 – 2017
Table 96 – iiNet – Broadband Subscribers (thousands) by Product – 2015 – 2017
Table 97 – TPG – Group Mobile Subscribers (thousands) by Division– 2014 – 2017
Table 98 – iiNet Fixed Voice – subscribers and ARPU – 2015 – 2017
Table 99 – Historic - TPG Group – Total Subscribers, Mobile Subscribers – Jan 2016
Table 100 – Historic - TPG (only) – broadband subscribers on/off-net and bundled – 2008 – 2016
Table 101 – Historic - TPG on-net versus Soul off-net home phone subscribers, annual change – 2009
Table 102 – Historic - TPG versus Soul mobile subscribers – 2008 – 2015
Table 103 – Vocus - key financial parameters – 2012- 2017
Table 104 – Vocus – Revenue Split by Division – 2016 – 2017
Table 105 – Vocus – Revenue Split by Product – 2016 – 2017
Table 106 – Vocus Australia - Consumer Broadband Subscribers – 2016 – 2017
Table 107 – M2’s acquisitions – 2005 – 2015
Table 108 – Macquarie key financial indicators – 2008 – 2017
Table 109 –Macquarie revenue by division- revenue $ (million)– 2015 – 2017

List of Charts

Chart 1 – Total broadband Subscribers – Fixed vs Wireless – 2011 – 2018
Chart 2 – Fixed broadband subscribers –DSL, Cable, Fibre – 2011 – 2018
Chart 3 – Accessing the Internet by Service, Usage Patterns – 2013; 2017
Chart 4 – Device used to go online – 2013; 2017
Chart 5 – Fixed broadband Subscribers (with Forecast) – 2010 – 2023
Chart 6 – Overall Optus overall operating revenue and annual change – 2000 – 2018

List of Exhibits

Exhibit 1 – TPG – Competitive Analysis Profile – Highlights
Exhibit 2 – TPG – Competitive Analysis Profile

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2018 Australia - Fixed Broadband Market - Insights, Statistics and Analyses

Purchase this Report

The DSL market shrinks as the NBN is further rolled out

Key Developments

Key companies mentioned in this report:

Fixed broadband market – overview and statistics

National broadband network

Fixed broadband service providers

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views