Business broadband on the rise, says IDC

Business broadband on the rise, says IDC

Australian companies are seeing long-term value in increasing investments in IP services and infrastructure, according to a recent IDC survey.

It measured the current and future broadband and Internet Protocol (IP) services usage of more than 200 Australian companies. Weight was given to spending patterns, intentions, methods of bandwidth access, loyalty to service providers and satisfaction levels.

IDC said the survey was aimed at end-users in government, finance, retail, manufacturing, logistics and insurance. The report concluded that more than half expected to increase spending on both broadband and IP services during 2003.

Senior telecommunications research analyst for IDC, Landry Fevre, said DSL deployment had almost doubled within a year to 49.5 per cent.

“Telstra has the highest market share in broadband business services with 50 per cent, followed by Optus with 8.2 per cent, and AAPT with 7.1 per cent,” he said.

IDC research director, Joel Martin, told ARN that Telstra has had a jump start that had allowed it to quickly take the leadership position. He said it was the provider other telcos were measuring success against.

“Other broadband ISPs have already started coming up with more flexible DSL products and packaging using their own and Telstra wholesale services,” he said.

Martin claimed that Optus and IP carrier, Comindico, would ramp up their ability to offer a complete national solution, but will not necessarily take market share from Telstra.

Survey results also showed that overall levels of satisfaction with broadband or IP service providers were increasing for Australian businesses.

IDC claimed the results were a strong sign of a maturing market with higher quality of network and service and increasing xDSL coverage.

It predicted service providers could expect a surge in VoIP as interest levels in trialling this technology had steadily increased since last year’s survey.

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