2007 Australia - Residential, Business, Government and Regional Markets

Last updated: 23 May 2007 Update History

Report Status: Archived

Report Pages: 151

Analyst: Stephen McNamara

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Summary
Table Of Contents

Publication Overview

For those needing comprehensive information and objective analysis of Australia’s residential, business, government and regional Markets in Australia, this report provides essential reading and gives in-depth information on:

Key regional state broadband and infrastructure projects.
Telecommunications policies and developments on a state-wide level.
Market surveys into the usage of Internet and broadband services in the residential, business and government sectors.
ARPU and subscriber statistics, across a range of market segments including web hosting and advertising.
Insight into the drivers and triggers behind Internet and broadband adoption amongst Australian households.
Regional trends and infrastructure developments.
Profiles of the key and emerging local telco players in each region.

Executive Summary

BuddeComm’s 2007 Australia – Residential, Business, Government and Regional Markets Annual Publication, provides information on a wide range of topics spanning Australian regional projects and government initiatives, as well as telecommunication policies and developments on a state-wide level. Market insight into a wide range of topics, including the usage of Internet and broadband services in the residential and business sectors are provided. The report includes ARPU and subscriber statistics across a range of market segments including web hosting and advertising. In addition, it examines regional trends and infrastructure developments. An overview of regional government policies at a national level is also provided.

The business market has been quick to embrace broadband – by 2007 the vast majority of the business sector had made the transition. Further growth is expected in 2008 and 2009. Australia’s regional and rural communities continue to adopt a highly political stance in regards to telecommunications issues and in fact have been viewed as being a key hindrance to the privatisation of Telstra.

Residential and Business markets

Consumer usage and behavioural patterns are also covered in some of the surveys. Our report provides a unique insight into the drivers and triggers behind Internet and broadband adoption among Australian households. Surveys covered include a statistical overview from the Australian Bureau of Statistics regarding computer and Internet usage amongst Australian households.

With the market gradually moving to faster broadband access via ADSL2+ and eventually fibre, we are beginning to see the start of much steeper growth in new broadband applications.
The report provides a detailed overview of the key drivers and trends behind broadband adoption in the Australian business market as well as revenue, ARPU and subscriber statistics, across a range of market segments including web hosting and advertising.
Market surveys reveal that Australian Small and Medium Businesses (SMBs) are doing a lot more with their ICT infrastructure and broadband is becoming a commoditised technology.

For more information on the business market see chapter 1.1, page 1.
For more information on the residential market see chapter 1.2, page 11.

Government markets

An overview of the business and government sector in a number of areas of telecommunications and Information Technology is provided. Detailed statistics are included on the business usage of technology, including breakdowns of computer and Internet usage, purchasing over the Internet and usage by type of Internet and broadband connection. An overview of each state is included, detailing key government initiatives in the telecommunications sectors, such as government policies and objectives, a review of budget allocations and government broadband initiatives.

A cross section of key government developments includes the following:

The NSW Government announced in January 2007 that Internet providers were being invited to take part in a new government initiative to provide free wireless broadband to the state’s major CBD areas.
In 2007 and beyond, the Victorian Government is applying the Broadband Framework to help position Victoria as a world leader in the use of current and ‘next generation’ broadband technologies.
In Tasmania, TasGovNet is a partially-lit, fibre optic backbone project owned by the Tasmanian Government, connecting North, South and North-West Tasmania.
In November 2006 the WA government pledged $1 billion of telecom spend over 10 years for a proposed broadband network offering 10Mb/s to all homes and businesses in the state.
Under the Clever Networks program, the local government has engaged a Broadband Development Manager to support Queensland organisations that have identified improved broadband infrastructure and services as a priority area for their region.

For more information on the government markets, see chapter 2, page 28.

Broadband projects

This section of the report provides updates on key state broadband projects as well as an overview of the key telcos operating at a regional level. A cross section of key regional developments includes the following:

In March 2007 the Queensland Government received 12 expressions of interest, including responses for its planned 100Mb/s Project Vista network in Brisbane. A winner is expected to be awarded by the end of 2007 to commence network construction in mid-2008.
Local telco Internode will deploy broadband infrastructure in a 42,000 sq km region stretching from Adelaide’s northern fringe to the Flinders Ranges, through an agreement with the Central Local Government Region of SA.
By the beginning of 2007, the TasCOLT FttH project in Tasmania had officially launched. The project relates to the installation, deployment and operation of ultra broadband services.
In Victoria, the City of Whittlesea in conjunction with Casey, Cardinia, Wyndham and Melton Councils has developed a Melbourne growth council consortium to bring broadband to new development areas.
By 2007 the Victorian Pyrenees/Grampians Customer Access Network Demonstration Project (CANDP) was delivering broadband access to local businesses and households.

For more information on broadband projects, see chapter 3.3, page 91.

Regional developments

Australia’s regional and rural communities continue to adopt a highly political stance in regards to telecommunications issues and in fact have been viewed as being a key hindrance to the privatisation of Telstra. This report includes analyses some of the numerous issues involved, and many of the initiatives that have been launched, completed and continuing in the bid to Connect Australia’s regional and rural communities. The focus is on the government’s role, with private sector activities profiled elsewhere. As a result of the further privatisation of Telstra, regional infrastructure funds, Regional Fund and Connect Australia, have been put in place valued at $3 billion. An overview and analysis of regional infrastructure in Australia is also examined.

For more information on regional developments, see chapter 3, page 79.

Data in this report is the latest available at the time of preparation and may not be for the current year.


1.	BUSINESS AND RESIDENTIAL MARKETS
1.1	Business market
1.1.1	Market trends
1.1.2	Statistical overview
1.1.3	Business market surveys
1.2	Residential market
1.2.1	Household use of Internet information technology
1.2.2	Household use of Internet information technology – 2005
1.2.3	Sensis consumer index – 2006
1.2.4	Other residential market surveys
2.	GOVERNMENT MARKETS
2.1	Statistical overview
2.1.1	Market surveys – 2007
2.1.2	Market surveys – 2005 and 2006
2.1.3	Sensis 2006 e-Business Report for SMEs
2.1.4	E-business and Internet trends amongst SMBs – October 2006
2.1.5	The Sensis e-Business index
2.1.6	Business use of information technology – ABS data
2.1.7	Other ABS surveys
2.1.8	Telecommunication insights for small businesses
2.1.9	ICT in business
2.1.10	ABS study examines economic impact of ICT
2.2	New South Wales & the ACT
2.2.1	New South Wales
2.2.2	Australian Capital Territory
2.3	Victoria
2.3.1	Government’s broadband framework
2.3.2	Overview of broadband strategies
2.3.3	Multimedia Victoria says 7% of State still waiting for broadband – March 2007
2.3.4	National Broadband Strategy (NBS)
2.3.5	Contracts with telco suppliers
2.3.6	Govt claims consumers and business are being denied broadband – February 2006
2.3.7	Telecommunications Purchasing and Management Strategy (TPAMS)
2.4	Queensland
2.4.1	Market overview
2.4.2	Mobile services
2.4.3	Queensland Government broadband initiatives
2.4.4	Government three-year strategy
2.4.5	Broadband developments
2.4.6	Local developments
2.4.7	Government ICT initiatives
2.5	SA, WA, NT & Tasmania
2.5.1	South Australia
2.5.2	Western Australia
2.5.3	Northern Territory
2.5.4	Tasmania
3.	REGIONAL MARKETS
3.1	Infrastructure overview
3.1.1	The regional backhaul problem
3.1.2	Market overview – setting the scene
3.1.3	Regional Internet Exchanges
3.1.4	Other major infrastructure providers
3.2	Government policies
3.2.1	Broadband Guarantee
3.2.2	Regional wholesale access network
3.2.3	Regional $2 billion Communications Fund
3.2.4	Connect Australia $1 billion fund starts in 2006
3.3	Broadband projects
3.3.1	New South Wales & the ACT
3.3.2	Victoria
3.3.3	Queensland
3.3.4	South Australia & Northern Territory
3.3.5	Tasmania
3.3.6	Western Australia
4.	GLOSSARY OF ABBREVIATIONS

Exhibit 1 – Rural fibre towns
Exhibit 2 – Broadband Connect bidders
Exhibit 3 - Armidale demographics

Table 1 – Dial-up and broadband subscriber overview – mid-2006
Table 2 – Business broadband subscribers – 2002 - 2008; 2010
Table 3 – Business broadband ARPU & annual change – 2004 - 2006
Table 4 – Business market Internet revenue – 1997 - 2007
Table 5 – Small business Internet access technology by metro/non-metro region – 2006
Table 6 – SMB Internet access technology usage – 2005 - 2006
Table 7 – SMBs Internet connection speeds – 2006
Table 8 – Use of Internet technologies (all SMBs) – 2006
Table 9 – Small business VoIP usage by type – 2006
Table 10 – VoIP non-users – why they’ve not implemented VoIP – 2006
Table 11 – Use of teleworking/remote access technology – 2006
Table 12 – Percentage of business usage of technology – 1994; 1998; 2000 - 2005
Table 13 – Percentage computer and Internet use by employment size – 2003 - 2005
Table 14 – Percentage computer and Internet use by total income – 2003 - 2005
Table 15 – Percentage computer and Internet use by industry– 2003 - 2005
Table 16 – Percentage computer and Internet use by state – 2003 - 2005
Table 17 – Percentage computer and Internet use by total region – 2003 - 2005
Table 18 – Percentage purchasing over the Internet – 2001 - 2005
Table 19 – Main type of Internet connection – 2004 - 2005
Table 20 – Main type of broadband connection – 2004 - 2005
Table 21 – Barriers to broadband usage – 2004 - 2005
Table 22 – Proportion of businesses using broadband by country – 2005
Table 23 – Number of Australian households and technology penetration – 2007
Table 24 – Broadband component of Internet households – 2005 - 2010; 2015
Table 25 – Total households with access to a home computer – 1998 - 2006
Table 26 – Households with access to a home computer – 1998 - 2006
Table 27 – Households with access to a home computer by region – 1998 - 2006
Table 28 – Total households with home Internet access – 1998 - 2006
Table 29 – Households with home Internet access – 1998 - 2006
Table 30 – Households with home Internet access by region – 1998 - 2006
Table 31 – Percentage use of the Internet according to location – 2005 - 2006
Table 32 – Percentage use of the Internet at home by purpose – 2005 - 2006
Table 33 – Percentage use of the Internet at home by main purpose – 2005 - 2006
Table 34 – Main reasons for not having access to the Internet at home – 2005 - 2006
Table 35 – Frequency of use of the Internet at home by gender and region – 2005 - 2006
Table 36 – Proportion of households with access to a computer at home - 1998 - 2005
Table 37 – Number of households with access to a computer at home - 1998 - 2005
Table 38 – Proportion of households with home Internet access - 1998 - 2005
Table 39 – Number of households with home Internet access - 1998 - 2005
Table 40 – Usage of computers by persons - 2004 - 2005
Table 41 – Usage of computers by persons - selected characteristics – 2004 - 2005
Table 42 – Usage of the Internet by persons - selected characteristics – 2004 - 2005
Table 43 – Household Internet connection by access type - 2004 - 2005
Table 44 – Personal usage of the Internet by access type - 2004 - 2005
Table 45 – Household broadband usage by access type - 2004 - 2005
Table 46 – Persons purchasing or ordering goods or services via the Internet - 1999 - 2005
Table 47 – Persons purchasing or ordering goods or services via the Internet - 2004 - 2005
Table 48 – Computerisation in the home – May 2006
Table 49 – Internet usage in the last 12 months – May 2006
Table 50 – Internet applications used in the last 12 months – May 2006
Table 51 – Banking channel preferred by CBA survey respondents – 2006
Table 52 – EIU e-readiness rankings – 2006 - 2007
Table 53 – Computer ownership by industry sector – May 2006
Table 54 – Computer ownership by business size and location – May 2006
Table 55 – Telecommunication equipment ownership – May 2006
Table 56 – SME computer equipment ownership trends – 1999 - 2006
Table 57 – SME computer hardware & software expenditure – 2005 calendar year
Table 58 – SME trends in mean expenditure, computer hardware & software – 2005 calendar year
Table 59 – SME expected computer hardware & software expenditure – 2006 calendar year
Table 60 – New software applications purchased/planned by SMEs – 2005 - 2006
Table 61 – Buying over the Internet by business size – 2006
Table 62 – Buying over the Internet by industry sector – 2006
Table 63 – Proportion of orders placed over the Internet – 2006
Table 64 – What businesses buy over the Internet – 2006
Table 65 – Business usage of technology – 1994; 1998; 2000 - 2005
Table 66 – Percentage computer and Internet use by employment size – 2003 - 2005
Table 67 – Percentage computer and Internet use by total income – 2003 - 2005
Table 68 – Percentage computer and Internet use by industry – 2003 – 2005
Table 69 – Percentage computer and Internet use by state – 2003 - 2005
Table 70 – Percentage computer and Internet use by total region – 2003 - 2005
Table 71 – Purchasing over the Internet – 2001 - 2005
Table 72 – Main type of Internet connection – 2004 - 2005
Table 73 – Main type of broadband connection – 2004 - 2005
Table 74 – Barriers to broadband usage – 2004 - 2005
Table 75 – Proportion of businesses using broadband by country – 2005
Table 76 – Use of telecommunication services in South Australia – 2006

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