2011 Australia - Broadband Market - Overview, Statistics and Forecasts

Publication Overview

BuddeComm’s 2011 Australia Broadband Market - Overview and Statistics annual publication profiles key sectors in Australia’s wireline broadband market. It provides an overview, as well as analysis, of the National Broadband Network and an informative chapter on trans-sector policies.

This report also provides a statistical overview of the broadband market in Australia and includes an overview of the major network operators, wholesalers and retail service providers.

The report also examines the developments in HFC networks, as well as greenfield deployments and home networking. The statistical sections of the report provide historical data as well as forecasts relating to broadband usage, internet service providers and the business

Researches:- Paul Budde, Stephen McNamara
Current publication date:- May 2011 (10th Edition)
Next publication date:- May 2012

Executive Summary

Broadband market keeps growing now standing at 11 million

In 2011 the governments of over 40 countries in the world are actively investigating the social and economic benefits that can be achieved through the deployment of a mainly fibre-based telecoms infrastructure.

Australia was the first country to get the digital productivity vision correct, thanks to government leadership. The USA soon followed (National Purpose) and the EU (Digital Agenda for Europe).

New Zealand, Singapore, Japan, Korea, Qatar and Sweden are showing real leadership as well. Economic and trans-sector innovations are now key items on the political agenda of these countries.

Services that depend on high quality broadband infrastructure include e-health, e-education, e-business, digital media, e-government, smart meters etc. In countries where the national telco is lagging behind governments have no choice but to take a leadership role, as they have done with similar infrastructure over the last 100 years.

Australia’s National Broadband Network

The Australian Labor Party’s election win of 2010 was at least partly due to the National Broadband Network policy. This proved that the Australian people do understand the importance of the National Broadband Network as essential infrastructure for a range of social and economic developments. This was followed by the release of the NBN Co business plan and the passing of critical legislation in early 2011.

The project is Australia’s largest ever infrastructure investment project.

While there is certainly a question mark surrounding the $36 billion price tag this did not deter the majority of the elected parliamentarians from supporting the concept.

The original concept for a national wholesale-based infrastructure for the digital economy remains in place, and the developments that have been initiated will now move full-steam-ahead. It is unlikely that there will be any serious threat to the survival of the National Broadband Network before the next election, as the project will have grown to such a size that it cannot be dismantled.

Statistical overview of the market

We present an overview of key statistics and trends in the Australian internet and broadband market, including internet subscribers segmented by geographical area and type of internet access technology. This report also provides market share and access revenue statistics.

We provide segmentation by dial-up, fixed broadband and wireless broadband. Surveys by government departments, including the Australian Bureau of Statistics (ABS), are provided. We also give an overview of new trends and technologies that are evolving from, and merging with, the internet sector.

An overview of the ISP market is given, including the number of ISPs by sector and market trends. Comparisons with international markets are provided to enable an overview of the Australian situation. The report’s statistics are provided in text, tabular and easy-to-read chart formats.

The business market in Australia was quick to embrace broadband and by 2009 the vast majority of that sector had already made the transition. A major reason businesses moved to broadband was to obtain faster speed, yet according to some studies in 2011 they still suffer from slow speeds.

Business broadband expansion continues into 2011, as these users move to mobile broadband, but the big driver will be from the fibre-based National Broadband Network. The faster speeds of this network will see business use explode with the uptake of services such as software as a service, along with cloud computing, online interactions and media conferencing, since all these services need high-speed broadband to succeed.

The report provides overall statistics of the residential telecoms market. It includes BuddeComm estimates of the market into 2011-2012 and data from a number of market surveys covering consumer usage and behavioural patterns, as well as internet and broadband usage statistics.

We also provide an analysis of the drivers behind internet adoption among Australian households. Surveys covered include a statistical overview from the ABS regarding computer and internet usage among Australian households, which includes a breakdown analysis of residential computer and internet usage over a wide range of criteria. The figures used are the latest available and some statistics from past surveys are made use of, to give a comparison over time.

Although there is some conjecture on actual internet service provider numbers, ranging from less than 400 through to more than 800, BuddeComm estimates that in 2011 there are around 450 ISPs providing services ranging from dial-up through to DSL, fibre and wireless solutions. Some ISPs only service small numbers – less than one hundred users.

By mid-2011 the retail fixed broadband market is dominated by a small number of companies. Telstra provides the majority of services and has more than four times as many retail subscribers as the second largest ISP, iiNet. The other top ISPs include TPG and Optus, with iPrimus holding less than half the number of subscribers that TPG has. ISP numbers are estimated to rise as the National Broadband Network rollout encourages even more service providers to enter the marketplace by providing the future services that the fibre-enabled NBN market will allow.

Consolidation has taken place in the retail ISP market, with a number of mergers in the last two years. The most notable of these deals was between iiNet and Westnet and TPG and Pipe Networks in 2009. iiNet also acquired Melbourne-based ISP Netspace and the AAPT consumer division in 2010. Continued consolidation is taking place.

The hybrid fibre coax networks operated by the two major carriers in Australia, Telstra and Optus, were upgraded to DOCSIS 3 in 2010 as a way of remaining competitive in the current broadband market –  that is, before the National Broadband Network is rolled out.

The other main player is Neighbourhood Cable, which operates a hybrid fibre coax network in Ballarat, Geelong and Mildura – all three regions also received a million dollar upgrade to the higher-speed 100Mb/s during 2010/11.

Home area networks refer to networks deployed in residential premises using wired or wireless technologies. Keeping pace with global trends devices in use in Australia are likely to become increasingly sophisticated in the next five years and competition and cooperation between network operators and consumer electronics manufacturers is likely to increase.

As home networking in Australia matures from being PC- and media-centric devices, such as digital TVs, DVRs, digital media centres, set-top boxes and game consoles, the need for more connectivity will arise. We will need to incorporate a variety of consumer electronic devices that require connectivity to the smart homes of the future. The rollout of the National Broadband Network and the integration of smart grids will further drive this sector of the home network market.

The deployment of FttH in greenfield estates is a dramatically growing industry; but, while the design of a fibre solution can be viewed as a rather simple task, having it designed correctly and operated effectively and with long-term success is quite a different matter. It is expected that by 2013 there will be more than 250,000 new households deployed by greenfield fibre estates.

Currently in Australia and New Zealand there are more than a dozen different major FttH operators with various levels of experience and capability. In 2011 new legislation was passed by parliament that will see all new major housing sites either being supplied with FttH networks or being made ready (pit and pipe) for easy deployment of that infrastructure by mid-2011.

Market highlights:

  • In developed markets fibre-to-the-home will be the leading infrastructure force behind the economic and social transformation, but mobile broadband will deliver these changes in the developing world.
  • Business broadband expansion continues into 2011 as users move to mobile broadband, but the big driver will be from the fibre-based National Broadband Network.
  • Already an increasing number of households make use of multiple broadband connections via both wired and wireless service providers as some internet usage (for example, reading emails) moves across to wireless devices such as notebook PCs and smart phones. This is set to grow exponentially over the coming years, with mobile-based devices overtaking desktop-based devices used for broadband access.
  • In 2010 broadband downloads had doubled since 2008. However the pricing of broadband media services is critical for household users, and as such the emergence of an economically attractive revenue model based on advertising or other forms is critical.
  • For the 12 months to end-2010 the annual growth in DSL slowed down to approximately 10%, by which time the market would have reached around 9.7 million broadband subscribers. A further 17% growth is projected for 2010/11 to take the total market to 10.4 million subscribers. The majority of the growth by this time will be coming from the mobile wireless broadband market.
  • At the beginning of 2011 there were less than one million cable broadband subscribers, a penetration rate of around 10% of the total broadband market in Australia.
  • Home area networking is a very important area for a large number of industries and investment in home area networking services is likely to increase. The critical issue for home networking is the cost of access to the outside world. With broadband prices and universal access still restricting the uptake of new home network-based services, the growth in this market is likely to suffer.
  • Since 2007 Australia has seen a dramatic rise in the number of fibre-to-the-home (FttH) operators and by early 2011 they had connected more than 20,000 households.
  • In Australia and New Zealand there are close to 200 communities that are reticulated, or are planning to be reticulated, with FttH. Once fully deployed this will represent in excess of 200,000 households connected to fibre; however, as with all broad-acre developments, the construction of the estate and release of lots is carried out according to a staged approach and it can take up to 15 years to achieve fully deployed status. By early 2011 there were an estimated 20,000 households connected in Australia.

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

Table of Contents

  • 1. High Level Insights
    • 1.1 Introduction: broadband doesn’t just equal high-speed internet
    • 1.2 The many aspects of broadband infrastructure
      • 1.2.1 Broadband equals healthcare infrastructure
      • 1.2.2 Broadband equals utility infrastructure
      • 1.2.3 Broadband equals education infrastructure
      • 1.2.4 Broadband equals media and e-business infrastructure
      • 1.2.5 Broadband equals smart cities
    • 1.3 Trans-sectoral thinking required for governments
    • 1.4 BuddeComm’s contribution to broadband based trans-sector policies
      • 1.4.1 The birth of trans-sector concept
      • 1.4.2 Australia: first country to develop trans-sector policies
      • 1.4.3 Smart grid and NBN first trans-sector project
      • 1.4.4 Support from Obama and the FCC
      • 1.4.5 Trans-sector innovations in the Netherlands and New Zealand
      • 1.4.6 United Nations puts its weight behind trans-sector
      • 1.4.7 BuddeComm proud of playing its part
    • 1.5 Barriers to NBN and broadband adoption
      • 1.5.1 Broken regulatory systems and the new broadband environment
      • 1.5.2 Australia’s NBN rollout begins
      • 1.5.3 Broadband progress or death by pilot projects?
      • 1.5.4 Barriers unique and numerous
    • 1.6 Conclusion
  • 2. Fast Broadband and Trans-sector Policy Development
    • 2.1 Introduction
    • 2.2 Economic and social multiplier effects
    • 2.3 Why did we get it so wrong in the first place?
    • 2.4 Smart policies will assist in budget-cutting
    • 2.5 Differences between fast broadband approaches
      • 2.5.1 Developing countries moving towards broadband
    • 2.6 Trans-sector requires intelligent approach towards measurement
    • 2.7 Massive increase in efficiency, productivity and customer satisfaction
    • 2.8 Privacy is paramount
    • 2.9 Conclusion: a market of nine billion people
  • 3. NBN Overview
    • 3.1 Why we started the NBN in the first place
    • 3.2 Overview of the National Broadband Network (NBN) plan
    • 3.3 Implementation issues
      • 3.3.1 Fundamental change to the economy
      • 3.3.2 People issues
      • 3.3.3 Business modelling - the key to success of the NBN
      • 3.3.4 Recommendations of the 2009 National Broadband Network Implementation Study
    • 3.4 Soco-economic benefits
    • 3.5 Where is the user in all of this?
  • 4. Statistical Overview
    • 4.1 Overall size of the market
      • 4.1.1 Total broadband subscribers
      • 4.1.2 Subscribers by major providers/technology
      • 4.1.3 Market shares
    • 4.2 Access revenues
      • 4.2.1 Statistical overview
      • 4.2.2 Average Revenue per User (ARPU)
    • 4.3 The internet market in 2011
      • 4.3.1 Australian Bureau of Statistics (ABS) Survey – 2010
      • 4.3.2 Statistical information by technology
      • 4.3.3 Broadband speeds
    • 4.4 ISP market overview
      • 4.4.1 The market in 2011
      • 4.4.2 Data limiting
      • 4.4.3 ISP market statistics
      • 4.4.4 ISPs contracting but set to expand
      • 4.4.5 Voice over Internet Protocol (VoIP) added to naked DSL
    • 4.5 Benchmarking with other countries
      • 4.5.1 Fixed broadband
      • 4.5.2 Wireless broadband
    • 4.6 Past ABS overviews
      • 4.6.1 December 2009
      • 4.6.2 June 2009
  • 5. Business Market
    • 5.1 Business market overview
    • 5.2 The next step for broadbanded companies
    • 5.3 The NBN and the business market
    • 5.4 Small business has room for expansion
    • 5.5 Business customer expenditure on telecoms
      • 5.5.1 Overview
      • 5.5.2 Spending information
    • 5.6 Business market surveys
      • 5.6.1 Assessment SME market in Australia – 2011
      • 5.6.2 Business broadband barometer
      • 5.6.3 OECD business measurements
      • 5.6.4 Sensis – 2010 e-business report
      • 5.6.5 IP networks were set to rise
      • 5.6.6 Optus IP Index – 2009
  • 6. Residential Market
    • 6.1 Residential market total telecoms
      • 6.1.1 Total customer expenditure telecoms
      • 6.1.2 Residential telecommunications market
    • 6.2 Internet household statistics
      • 6.2.1 Australian Bureau of Statistics (ABS) surveys and internet connectivity
      • 6.2.2 Australian Communications and Media Authority (ACMA) surveys
    • 6.3 Trends in the residential market
      • 6.3.1 Significant increase in volume
      • 6.3.2 Are low-end fixed internet users interested in HSPA?
      • 6.3.3 Dial-up internet just hanging on
    • 6.4 Household use of technology
      • 6.4.1 Computer technologies
      • 6.4.2 Broadband technologies
    • 6.5 Other residential market surveys
      • 6.5.1 Customer service issues and the Telecommunications Industry Ombudsman (TIO)
  • 7. DSL Market
    • 7.1 Overview and statistics
      • 7.1.1 Background
      • 7.1.2 Regulatory environment – analysis
      • 7.1.3 DSL infrastructure
    • 7.2 Providers
      • 7.2.1 Market consolidation
      • 7.2.2 The shrinking of ISPs
      • 7.2.3 ISP customer satisfaction
      • 7.2.4 Market share statistics
  • 8. HFC Cable Networks
    • 8.1 Technology
      • 8.1.1 Hybrid fibre coax (HFC)
      • 8.1.2 The DOCSIS standard
    • 8.2 Market statistics and estimates
    • 8.3 Austar United Communications Ltd (AUSTAR)
      • 8.3.1 Overview
    • 8.4 BES/e-wire
      • 8.4.1 Overview
    • 8.5 Neighbourhood Cable Limited (NCL)
      • 8.5.1 Overview
    • 8.6 Telstra
      • 8.6.1 Background information
      • 8.6.2 DOCSIS 3.0 upgraded
    • 8.7 Optus
      • 8.7.1 Overview
      • 8.7.2 Network DOCSIS 3.0 upgraded
    • 8.8 Industry analysis
      • 8.8.1 No long-term future in HFC cable broadband
      • 8.8.2 HFC to be decommissioned
      • 8.8.3 From HFC to fibre-to-the-home (FttH)
  • 9. Home Area Networks
    • 9.1 Home area networks (HANs) defined
    • 9.2 Internal network connectivity
      • 9.2.1 Wireless homes
      • 9.2.2 Broadband over home electrical cabling – HomePlug
      • 9.2.3 Smart meters to drive HAN uptake
    • 9.3 Network devices
      • 9.3.1 Home media centres
      • 9.3.2 Interfacing with home networks
      • 9.3.3 HAN-enabled smart meters
    • 9.4 The smart home
      • 9.4.1 Overview of the future home
      • 9.4.2 Home automation devices
      • 9.4.3 Broadband-enabled connected homes
      • 9.4.4 Smart wired house standard developed
      • 9.4.5 Residential energy management networks
    • 9.5 Analysis
      • 9.5.1 Steady growth ahead
    • 9.6 Surveys
      • 9.6.1 The connected home
      • 9.6.2 Willingness to pay
  • 10. FttH Greenfield Market
    • 10.1 Fibre Deployment Bill 2011
      • 10.1.1 Outline of the Telecommunications Legislation Amendment (Fibre Deployment) Bill 2011 (the Bill)
      • 10.1.2 NBN Co provider of last resort
    • 10.2 Statistics on fibre-enabled communities
      • 10.2.1 Communities by provider
    • 10.3 Network operators
      • 10.3.1 Summary of FttH network operators
      • 10.3.2 Arise
      • 10.3.3 Broadcast Engineering Services (BES)
      • 10.3.4 ClubCOM Utilities (ClubCOM)
      • 10.3.5 Comverge Networks (Comverge)
      • 10.3.6 HaleNET
      • 10.3.7 Open Access Networks
      • 10.3.8 OPENetworks
      • 10.3.9 OptiComm
      • 10.3.10 thepacific.net Limited
      • 10.3.11 Pivit
      • 10.3.12 FUZEconnect/Service Elements
      • 10.3.13 Telstra
      • 10.3.14 TelstraClear
      • 10.3.15 TransACT
    • 10.4 Retailers
      • 10.4.1 Service pricing
  • 11. Forecasts
    • 11.1 Industry forecast – 2015
    • 11.2 Market segment forecasts – 2005; 2010; 2015
  • 12. Glossary of Abbreviations
  • Table 1 – Total broadband subscribers and annual change – 2005 - 2012
  • Table 2 – Broadband subscribers – total market by access technology – 2005 - 2011
  • Table 3 – Broadband market by access technology – annual change – 2005 - 2011
  • Table 4 – Broadband subscribers – market shares (cable, ADSL, wireless totals) – 2005 - 2011
  • Table 5 – Broadband access revenues by major provider – 2007 - 2011
  • Table 6 – Annual change in broadband access revenues by major provider – 2007 - 2011
  • Table 7 – Market share of broadband access revenues by major provider – 2005 - 2011
  • Table 8 – Business, government and household internet subscribers (historic) – 2007 - 2009
  • Table 9 – Internet subscribers by access technology – 2008 - 2011
  • Table 10 – Broadband market share by technology and annual change – 2008 - 2011
  • Table 11 – Data downloaded by access technology – 2009 - 2011
  • Table 12 – Data downloaded by access technology (historic) – 2008 - 2009
  • Table 13 – Subscribers’ connected speed in Australia – 2010
  • Table 14 – Internet subscribers by download speed – 2007 - 2010
  • Table 15 – Business, government and household internet subscribers by download speed – 2007 - 2010
  • Table 16 – Proportion of ISPs by size in the Australian market – 2008 - 2010
  • Table 17 – Number of ISPs – 2001 - 2012
  • Table 18 – Fixed broadband access among internet households – selected countries – 2006 - 2011
  • Table 19 – Market penetration of households with broadband access as a percentage of all households – Australia and selected countries – 2009 - 2010
  • Table 20 – Telco product mix of customer spend – 2010
  • Table 21 – Business and government market spending – 2010
  • Table 22 – Providers’ market share – 2010
  • Table 23 – SME computer equipment ownership trends – 1999 - 2010
  • Table 24 – Business trends in internet connections – 2000 - 2010
  • Table 25 – SMEs internet access methods, by technology – 2009 - 2010
  • Table 26 – Summary of current uses of the internet by SMEs – 2009 - 2010
  • Table 27 – Security methods utilised for remote access to networks – 2008 - 2009
  • Table 28 – Devices used to connect to networks – 2008 - 2009
  • Table 29 – Employees’ work locations – home, workplace or off-site – 2008 - 2010
  • Table 30 – Changes in usage of non-voice applications on 3G handsets – 2010
  • Table 31 – Plans for convergence of data and voice networks – 2005; 2008 - 2009
  • Table 32 – Revenue mix – residential market – 2010
  • Table 33 – Broadband component of internet households – 2005 - 2011; 2015
  • Table 34 – Internet access households with children – 2001 - 2009
  • Table 35 – Top 5 internet activities online versus mobile – 2010
  • Table 36 – Internet usage by age group – 2010
  • Table 37 – Growth in data usage – 2008 - 2010
  • Table 38 – Dial-up and non-dial-up internet subscribers – 2003 - 2010
  • Table 39 – Computerisation in the home – 2010
  • Table 40 – Number of infrastructure providers by number of ADSL-enabled exchanges – 2007 - 2008; 2010 - 2011
  • Table 41 – Number of DSLAMs by major provider – 2007 - 2011
  • Table 42 – Number of ADSL and ADSL2+-enabled exchanges – 2011
  • Table 43 – Broadband DSL retail subscribers by major provider – 2007 - 2011
  • Table 44 – Total business and residential broadband DSL subscribers – 2007 - 2011
  • Table 45 – Home network penetration of households - 2005; 2007; 2008; 2010; 2015
  • Table 46 – Homes connected to fibre – 2005 - 2010
  • Table 47 – FttH communities in Australia and New Zealand by provider – 2010
  • Table 48 – Percentage breakdown of FttH communities by provider – 2010
  • Table 49 – Overview total telecoms/internet market – 2015
  • Table 50 – Broadband revenues – 2005; 2010; 2015
  • Table 51 – Broadband market share by technology – 2005; 2010; 2015
  • Chart 1 – Total broadband subscribers and annual change – 2000 - 2012
  • Chart 2 – Broadband access revenues by major provider – 2005 - 2011
  • Chart 3 – Annual change in broadband access revenues by major provider – 2007 - 2011
  • Chart 4 – Market share of broadband access revenues by major provider – 2005 - 2011
  • Chart 5 – Number of ISPs – 1995 - 2012
  • Chart 6 – Number of ISPs by major technology – 2009 - 2011
  • Chart 7 – Opportunities for technology growth by SMEs – 2011
  • Chart 8 – Businesses accessing the internet, by technology – 2010
  • Chart 9 – Business uptake of broadband in Australia and New Zealand – 2003 - 2010
  • Chart 10 – SME computer equipment ownership trends by type –- 1999 - 2010
  • Chart 11 – SME versus medium-sized business computer expenditure – 2007 - 2010
  • Chart 12 – Business trends in internet connections – 1995 - 2010
  • Chart 13 – Security methods utilised for remote access to networks – 2008 - 2009
  • Chart 14 – Employees' work locations – 2008 - 2010
  • Chart 15 – Changes in usage of non-voice applications on 3G handsets – 2010
  • Chart 16 – Estimated market share by provider – 2010
  • Chart 17 – Total households with home internet access – 1999 - 2010
  • Chart 18 – Consumer internet usage hours by category – 2006; 2010
  • Chart 19 – Total complaints to the TIO – 2006 - 2010
  • Chart 20 – Consumer and SME complaints to the TIO by industry sector – 2009 - 2010
  • Chart 21 – Number of DSLAMs by top 5 providers – 2010 - 2011
  • Chart 22 - Number of ADSL and ADSL2+ enabled exchanges – 2011
  • Chart 23 – The top six ISPs with excellent customer service satisfaction ratings – 2009 - 2011
  • Chart 24 – Total business and residential broadband DSL subscribers – 2006 - 2011
  • Chart 25 – Cable subscribers versus other technologies – 2009 - 2010
  • Chart 26 – Cable broadband subscribers by major operator and annual change – 2002 - 2011
  • Chart 27 - Broadband revenues - 2005; 2010; 2015
  • Chart 28 - Broadband market share by technology - 2005; 2010; 2015
  • Exhibit 1 – Key insights into FttH and trans-sector strategy
  • Exhibit 2 – Economic benefits of broadband – overview of surveys
  • Exhibit 3 – HFC network status
  • Exhibit 4 – Summary of FttH network operators
  • Exhibit 5 – Advice for digital economy builders

Related Reports

Purchase this Report

US$250.00

Licence Information

Annual Publication Profile

Technologies

Broadband Fixed
Mobile & Wireless Broadband and Media
Regulations & Government Policies
Strategies & Analyses (Industry & Markets)

Number of pages 119

Status Archived

Last updated 25 May 2011
Update History

Analyst: Paul Budde

Share this Report

Purchase with Confidence

Easy uncomplicated ordering and delivery system, nicely done.

Hedley Boyd-Moss,

Special Offers

Caribbean - Telecoms, Mobile, and Broadband - Statistics and Analyses
US$795.00 until 30 Oct 2019
(normal price US$1,590.00)

Venezuela - Telecoms, Mobile and Broadband - Statistics and Analyses
US$575.00 until 30 Oct 2019
(normal price US$1,150.00)

Sample Reports

A selection of downloadable samples from our Annual Publications catalogue.


Download a Sample Report

More than 4,000 customers from 140 countries utilise BuddeComm Research

Are you interested in BuddeComm's Custom Research Service?

News & Views

Have the latest telecommunications industry news delivered to your inbox by subscribing to Paul's FREE weekly News & Views.