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Aussies in Need of More Advanced Broadband Offerings, Says IDC

  • 24 April, 2006 13:00

<p>NORTH SYDNEY, Monday April 24th, 2006 - According to IDC's recent report "Australia Broadband 2006-2010 Forecast and Analysis: The ADSL2+ Crusade", IDC finds that Australia is in desperate need of better broadband bargains which move beyond the usual high speed plans with gigantic download limits.</p>
<p>IDC's 2H05 Fixed Line Services Tracker reveals that there were more than 2.9 million broadband subscribers by year end 2005. IDC expects total broadband subscribers to exceed 5.9 million by 2010, mostly driven by ADSL uptake, given the vast nationwide footprint of Telstra's existing copper network and the subsequent Unbundled Local Loop (ULL) uptake by alternative broadband service providers (BSPs) for their active ADSL2+ DSLAM (Digital Subscriber Line Access Multiplexer) deployments.</p>
<p>OECD's (Organisation for Economic Co-operation and Development) latest broadband statistics for December 2005 shows that overall broadband penetration in Australia stands at 13.8%, a whopping improvement from the 7.7% and 3.5% overall broadband penetration in December 2004 and 2003 respectively. Although the telcos partially attributed the low broadband penetration rates in 2003 and 2004 to the Aussie beach, barbeque and 'outdoorsy' culture which inhibited Australians from embracing broadband technologies, IDC believes that the plain truth lies in the evolution path of broadband plans in Australia.</p>
<p>"To awaken the broadband giant within, the Aussies want good value-for-money broadband bargains. Take France for instance - its overall broadband penetration rate at the end of 2005 was 15.2%, a narrow 1.4% ahead of Australia, yet the sophistication of broadband plans in France far surpasses those available in Australia today. Value-for-money deals like naked DSL offerings (DSL services without fixed line subscription), unlimited free calls on BSPs' VoIP networks and IPTV services over ADSL2+ speeds are commonly available in France. For example, for €29.90 (A$49.66*) per month, BSP Free offers no contract broadband access at 24Mbps downstream and 1Mbps upstream speeds with unlimited free phone calls to 15 countries including Australia, US and Europe and IPTV services." said Shing Quah, Market Analyst, Telecommunications, IDC Australia.</p>
<p>She added, "The incumbent France Telecom has shipped 2 million 'Livebox' home gateways since its launch in 2004, of which 1 million 'Livebox' were shipped in the past 6 months. These home gateways which allow subscribers to connect to the Internet, make VoIP and video calls as well as watch Video-On-Demand and IPTV services have become part-and-parcel of broadband offerings in France, but in Australia they remain on BSP executives' planning dashboards for future deployments, as local BSPs continue to offer data and occasionally voice-based equipment."</p>
<p>Growth in the Australia Internet Access Market has been exclusively driven by the uptake of broadband from 2005 onwards, particularly with new subscribers going online as well as the continued migration of dial-up subscribers onto broadband, and IDC expects that 3 out of 4 (or 73%) of Internet access users will be broadband subscribers by the end of the decade (2010). In revenue terms, the Australia broadband market has generated total revenues in excess of A$1.9 billion in 2005 and IDC predicts that it will continue to grow and surpass the A$4 billion market by year end 2010.</p>
<p>(Note: *€ to $A exchange rate current as of 19/04/06 as per</p>
Don't miss the 'Telecommunications/Consumer Track' at IDC's 2006 Directions event on April 27th – this week! This year's event titled "Australia's Role in a Shrinking Globe: Seizing Opportunities in a Connected World" will bring together key players from the IT&amp;T industry in an exciting one day format. Throughout the day IDC analysts will apply IDC's rigorous methodologies and analysis to discern future trends, top growth opportunities, hot vertical segments and success strategies to help you understand how to maximize your opportunities in today's connected world. Hurry there are limited seats available at this event. To see the full agenda visit or go to for more information.</p>
<p>For press enquiries please contact:
Shing Quah
Market Analyst, Telecommunications
Phone: 61 2 9925 2220</p>
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