2007 Australia - Broadband Market - Overview and Statistics

1. DEVELOPMENTS AND ANALYSIS 2007

1.1 Regions can be commercially broadbanded

1.2 Bringing some sanity into the broadband debate

1.3 OECD vindicated re its broadband data

1.4 Where are the broadband devices?

1.5 Broadband: Australia is on the right track

1.6 Analyses of Labor’s broadband plan

1.7 Low demand density for broadband services

1.8 Can we stop the broadband train crash?

1.9 Telstra moving towards VDSL

1.10 Broadband Blueprint?

1.10.1 Implementation before blue printing

1.10.2 States discussed blueprint

2. STATISTICAL OVERVIEW AND FORECAST

2.1 Introduction

2.2 Australia’s broadband ranking - mid-2007

2.3 The broadband market in numbers - 2006

2.3.1 ACCC Report 2006

2.3.2 Subscriber statistics overview and forecasts

2.4 Market shares

2.5 Market statistics and forecasts - 2005 - 2015

2.5.1 Broadband statistics

2.5.2 Revenue forecasts - 2006 - 2007

2.5.3 Residential market - where the long term potential exists

2.5.4 Long-term forecast - 2015

2.5.5 Broadband speeds - towards 2015

2.5.6 Spectacular developments in bandwidth

2.5.7 Market segment forecasts - 2005 - 2015

3. BUSINESS MARKET

3.1 Market trends

3.1.1 Business market in 2007

3.1.2 The next step for broadbanded companies

3.2 Statistical overview

3.2.1 Broadband subscriber statistics

3.2.2 The business ISP market

3.2.3 Revenue statistics

3.3 Business market surveys

3.3.1 Australian SME Telecommunications Survey overview - 2007

3.3.2 Business use of information technology - ABS

3.3.3 ACCC claims corporate competition is vigorous

3.3.4 Survey reveals increase in Internet business

3.3.5 Optus survey finds huge growth in mobile email

4. MARKET SURVEYS

4.1 The Internet - the killer app

4.2 ABS survey of Internet and ISP activity - September 2006

4.2.1 Overview

4.2.2 Internet subscribers

4.2.3 Geographical data

4.2.4 Data downloaded

4.2.5 Internet access technologies

4.3 ABS Internet activity survey (large ISPs only) - 2006 - 2007

4.3.1 Internet subscribers

4.3.2 Geographical data

4.3.3 Data downloaded

4.3.4 Internet subscribers and ISPs by access technology

4.3.5 Internet subscribers and ISPs by subscriber type and download speed

4.4 ABS survey - household use of Internet information technology - 2006

4.4.1 Broadband Internet access

4.4.2 Use of computers by children

4.5 Other market surveys

4.5.1 Ericsson Consumer Lab survey

4.5.2 Online advertising market surges - late 2006

5. RESIDENTIAL MARKET

5.1 Household use of Internet information technology

5.1.1 Household statistics

5.1.2 Household home Internet and computer access

5.1.3 Type of household Internet connection

5.1.4 Use of the Internet

5.1.5 Main purpose of Internet use at home

5.1.6 Main reasons or not having Internet access

5.1.7 Frequency of Internet usage

5.2 Sensis consumer index - 2006

5.3 Other residential market surveys

5.3.1 The connected home

5.3.2 Parents see new technologies as having a negative impact on kids - April 2007

5.3.3 Online shopping low in Australia during Christmas 2006

5.3.4 Link between Television and the Internet

5.3.5 Dial-up Internet continues to decline at the expense of ADSL

5.3.6 Roy Morgan survey - residential broadband take-up throughout Australia

5.3.7 Broadband growth in Australia - Market Clarity

5.3.8 A Survey by Connection Research Services

5.3.9 Survey on Internet security

5.3.10 ASCCA researches seniors’ telecommunication needs (Internet)

5.3.11 Market survey by Ericsson (Internet)

5.3.12 Home Internet usage survey

5.3.13 Australian consumers embrace Internet banking

6. ADSL

6.1 Overview and statistics

6.1.1 ADSL subscriber statistics

6.1.2 Digital Subscriber Line (DSL) resellers

6.1.3 Customer Access Network (CAN) issues

6.1.4 Regional DSL

6.1.5 Telstra’s extended broadband trial - abandoned

6.2 ADSL2+ providers

6.2.1 DSLAMs and ADSL2+

6.2.2 Telstra

6.2.3 Optus

6.2.4 Internode

6.2.5 iiNet

6.2.6 Adam Internet

6.2.7 Netspace

6.2.8 PowerTel

6.2.9 Telarus

6.3 DSLAMs and ADSL2

6.3.1 ADSL (introduction only)

6.3.2 Unbundling of the Local Loop (ULL) and line sharing

6.3.3 DSLAM

6.3.4 ADSL2+

6.3.5 New business models

6.3.6 High speed Internet & High Definition TV to regional & rural areas

7. CABLE MODEMS

7.1 Latest developments

7.1.1 Telstra

7.1.2 Optus

7.1.3 Cable opportunities in SMEs

7.2 Market Overview

7.2.1 Background

7.2.2 High-speed Internet access

7.2.3 DOCSIS 3.0

7.3 From HFC to FttH - analysis

7.3.1 Introduction

7.3.2 HFC nearing the end of its economic life

7.3.3 Lack of competition stifles innovation

7.3.4 Consolidate the two networks and combine for competition

7.3.5 FttN

7.4 The long road that led to nowhere

7.4.1 Historical overview

7.4.2 Market statistics and forecasts

7.5 Telstra’s cable modem service

7.5.1 Overview

7.5.2 Technology standard overview

7.5.3 BigPond Cable Extreme

7.5.4 Historical Background

7.5.5 Trialling faster cable modem speeds

7.6 Optus

7.6.1 Overview

7.7 Cable modems versus xDSL

7.8 Cable telephony

7.8.1 Market overview

7.8.2 The end of cable telephony?

8. BROADBAND IS ESSENTIAL INFRASTRUCTURE

8.1 Brief introduction to key technologies

8.1.1 Digital Subscriber Line (DSL)

8.1.2 Cable modems

8.1.3 Fibre-to-the-Home (FttH)

8.1.4 Fibre-to-the-Node (FttN)

8.1.5 Wireless broadband

8.1.6 Broadband Powerlines (BPL)

8.1.7 Broadband Technologies capabilities

8.1.8 Technology reports

8.2 Broadband doesn’t equal high-speed Internet

8.3 The many aspects of broadband infrastructure

8.3.1 Broadband equals healthcare infrastructure

8.3.2 Broadband equals utility infrastructure

8.3.3 Broadband equals education infrastructure

8.3.4 Broadband equals media and e-business infrastructure

8.3.5 Broadband equals lifestyle infrastructure

8.3.6 Cities to take charge

8.3.7 National or local infrastructure

8.3.8 The pointless technology debates

9. NETWORK OPERATORS AND WHOLESALERS

9.1 ISP market

9.2 Internet media companies

9.3 The broadband industry

9.3.1 Industry structure

9.3.2 Too much reliance on access

9.4 DSL Operators

9.4.1 Telstra infrastructure

9.4.2 Telstra’s ADSL network

9.4.3 Optus

9.4.4 Nextep Broadband

9.4.5 PowerTel

9.4.6 Netspace

9.4.7 Commander

9.4.8 iiNet

9.4.9 Primus

9.4.10 Soul

9.4.11 AAPT

9.4.12 People Telecom

9.4.13 Internode

9.4.14 Amcom

9.4.15 Digital Distribution Australia

9.5 HFC Networks

9.5.1 Telstra BigPond broadband cable

9.5.2 OptusNet cable

9.5.3 Neighbourhood Cable

9.6 TransACT

9.7 AUSalliance

9.8 Wireless broadband operators

9.9 Electricity utilities

9.10 Consolidation

10. ANALYSES

10.1 What is broadband and why is it needed?

10.2 True broadband

10.3 We told you Telstra was bluffing

10.4 Boom and bust cycle in local access

10.4.1 Global infrastructure nearing collapse

10.4.2 Wild growth in local access

10.4.3 Dark fibre providers setting the scene

10.4.4 Expect the bust in 2012/13

10.4.5 Financial world getting on board

10.4.6 One minute to midnight

10.5 Broadband deteriorating in regional Australia

10.5.1 Australian farmers slow to use broadband - August 2006

10.6 Open networks needed for broadband services

10.7 Incumbents are running behind

10.7.1 Build and they will come?

10.7.2 Slow CAN upgrades from Telstra

10.7.3 Optus has been pursuing resale rather than infrastructure

10.7.4 How to destruct capital

10.7.5 Serious consequence for Australian economy

10.8 New initiatives

10.8.1 Long-haul

10.8.2 CAN alternatives

10.8.3 Telstra’s network initiatives

10.8.4 Regional infrastructure funds

10.9 Copper is still very much alive

10.10 Proactive communities

11. GLOSSARY OF ABBREVIATIONS

Exhibit 1 - Advice for information highway contenders

Exhibit 2 - From Kilobit to Yottabit

Exhibit 3 - Some application bit rates

Exhibit 4 - Drivers of high-speed Internet

Exhibit 5 - Service Providers Activities

Exhibit 6 - Early ADSL2+ providers - 2006

Exhibit 7 - HFC Network status

Exhibit 8 - Devices supported by types of broadband

Exhibit 9 - Optus HFC Network status

Exhibit 10 - Some application bit rates

Exhibit 11 - Access technologies

Exhibit 12 - What does it mean? (DSL, 1Gb/s, DWDM transmission speeds)

Exhibit 13 - Overview of physical distribution networks for high-speed services

Exhibit 14 - Infrastructure - people power

Table 1 - Number of Australian households and technology penetration - 2007

Table 2 - Broadband component of Internet households - 2005 - 2010; 2015

Table 3 - Broadband access among Internet households - selected countries -2001 - 2007

Table 4 - Broadband subscribers by technology - 2001 - 2006

Table 5 - Broadband subscribers - total market - retail values - 2002 - 2008

Table 6 - Broadband subscribers - total market - wholesale values - 2002 - 2008

Table 7 - Broadband subscribers - total market - annual growth - retail values - 2003 - 2008

Table 8 - Broadband subscribers - total market - annual growth - wholesale values - 2003 - 2008

Table 9 - Broadband subscribers - market shares - retail values - 2003 - 2008

Table 10 - Broadband subscribers - market shares - wholesale values - 2003 - 2008

Table 11 - Broadband subscribers - market shares (cable, ADSL totals) - retail values - 2003 - 2008

Table 12 - Broadband subscribers - total market - retail values - 2002 - 2008

Table 13 - Total broadband subscribers - 1996 - 2009

Table 14 - Broadband revenues by major provider - 2000 - 2007

Table 15 - Broadband revenues by major provider - annual change - 2003 - 2007

Table 16 - Broadband revenue market share by major provider - 2003 - 2007

Table 17 - Revenue make-up scenario forecasting - 2010

Table 18 - Residential spend per household per annum - 2003; 2010; 2015

Table 19 - Overview total Telecoms/Internet market - 2015

Table 20 - Residential Broadband (BB) growth predictions - next ten years

Table 21 - Number of countries with broadband speeds of more than 256Kb/s - 2002 - 2006

Table 22 - Average maximum broadband speeds - international benchmark

Table 23 - Why the average home will soon require 50Mb/s to the home

Table 24 - Broadband revenues - 2005; 2010; 2015

Table 25 - Broadband market share by technology - 2005; 2010; 2015

Table 26 - Dial-up and broadband subscriber overview - mid-2006

Table 27 - Business broadband subscribers - 2002 - 2008; 2010

Table 28 - Business broadband ARPU & annual change - 2004 - 2006

Table 29 - Business market Internet revenue - 1997 - 2007

Table 30 - Percentage of business usage of technology - 1994; 1998; 2000 - 2005

Table 31 - Percentage computer and Internet use by employment size - 2003 - 2005

Table 32 - Percentage computer and Internet use by total income - 2003 - 2005

Table 33 - Percentage computer and Internet use by industry- 2003 - 2005

Table 34 - Percentage computer and Internet use by state - 2003 - 2005

Table 35 - Percentage computer and Internet use by total region - 2003 - 2005

Table 36 - Percentage purchasing over the Internet - 2001 - 2005

Table 37 - Main type of Internet connection - 2004 - 2005

Table 38 - Main type of broadband connection - 2004 - 2005

Table 39 - Barriers to broadband usage - 2004 - 2005

Table 40 - Proportion of businesses using broadband by country - 2005

Table 41 - DSL, 1Gb/s, DWDM transmission speeds - what does it mean?

Table 42 - Internet households & business subscribers - 1985; 1990; 1995 - 2006

Table 43 - Dial-up and non-dial-up Internet subscribers - 2003 - 2006

Table 44 - Business, government and household Internet subscribers - 2005 - 2006

Table 45 - Proportion of business, government and household Internet subscribers - 2005 - 2006

Table 46 - Internet subscribers by type by ISP size - 2005 - 2006

Table 47 - Proportion of Internet subscribers by type by ISP size - 2005 - 2006

Table 48 - Internet subscribers by type and download speeds - September 2006

Table 49 - Internet subscribers per state - 2002 - 2006

Table 50 - Portion of Internet subscribers per state - 2002 - 2006

Table 51 - Data downloaded by households, business and government - 2000 - 2006

Table 52 - Data downloaded by dial-up and non-dial up users - 2003 - 2006

Table 53 - Internet subscribers by access technology - September 2006

Table 54 - Internet subscribers by access technology - March 2005

Table 55 - Dial-up Internet subscribers - business, government and households - March 2004 - March 2007

Table 56 - Non-dial-up Internet subscribers - business, government and households - March 2004 - March 2007

Table 57 - Total Internet subscribers - business, government and households - September 2006 - March 2007

Table 58 - Total dial-up & non-dial-up Internet subscribers - March 2004 - June 2006

Table 59 - Internet subscribers per state - June 2006 - March 2007

Table 60 - Dial-up data downloaded by households, business & government - 2004 - 2007

Table 61 - Non dial-up data downloaded by households, business & government - 2004 - 2007

Table 62 - Total data downloaded by dial-up and non dial-up - 2004 - 2007

Table 63 - Numbers of ISPs by size - September 2006 - March 2007

Table 64 - Internet subscribers by access technology - September 2006 - Mar 2007

Table 65 - Internet subscribers and ISPs by access technology - June 2006

Table 66 - Internet subscribers and ISPs by access technology - June 2006

Table 67 - Business/government Internet subscribers by download speed - Sep 2006 - Mar 2007

Table 68 - Household Internet subscribers by download speed - Sep 2006 - Mar 2007

Table 69 - All Internet subscribers by download speed - Sep 2006 - Mar 2007

Table 70 - ISPs & business/government Internet subscribers by download speed - June 2006

Table 71 - ISPs and household Internet subscribers by download speed - June 2006

Table 72 - All Internet subscribers & ISPs by download speed - June 2006

Table 73 - Household Internet connection by type of access - 2005 - 2006

Table 74 - Personal use of the Internet by type of access - 2005 - 2006

Table 75 - Household Internet access by type of broadband access - 2005 - 2006

Table 76 - Children’s use of computers by site - 2005 - 2006

Table 77 - Children’s use of a computer at home by activities - 2005 - 2006

Table 78 - Children’s use of a computer at home by frequency - 2005 - 2006

Table 79 - Children’s use of the Internet by site - 2005 - 2006

Table 80 - Children’s use of the Internet at home by activities - 2005 - 2006

Table 81 - Children’s use of the Internet at home by type of Internet sites accessed - 2005 - 2006

Table 82 - Children’s use of the Internet at home by frequency - 2005 - 2006

Table 83 - Children’s use of the Internet by type of Internet access - 2005 - 2006

Table 84 - Number of Australian households and technology penetration - 2007

Table 85 - Broadband component of Internet households - 2005 - 2010; 2015

Table 86 - Total households with access to a home computer - 1998 - 2006

Table 87 - Households with access to a home computer - 1998 - 2006

Table 88 - Households with access to a home computer by region - 1998 - 2006

Table 89 - Total households with home Internet access - 1998 - 2006

Table 90 - Households with home Internet access - 1998 - 2006

Table 91 - Households with home Internet access by region - 1998 - 2006

Table 92 - Percentage use of the Internet according to location - 2005 - 2006

Table 93 - Percentage use of the Internet at home by purpose - 2005 - 2006

Table 94 - Percentage use of the Internet at home by main purpose - 2005 - 2006

Table 95 - Main reasons for not having access to the Internet at home - 2005 - 2006

Table 96 - Frequency of use of the Internet at home by gender and region - 2005 - 2006

Table 97 - Computerisation in the home - May 2006

Table 98 - Internet usage in the last 12 months - May 2006

Table 99 - Internet applications used in the last 12 months - May 2006

Table 100 - Banking channel preferred by CBA survey respondents - 2006

Table 101 - Broadband DSL retail subscribers - 2002 - 2006

Table 102 - Current and planned competitive DSLAM roll outs*

Table 103 - Internet service providers with DSLAM infrastructure - 2006 - 2007

Table 104 - Number of ADSL and ADSL2+ enabled exchanges - June 2006

Table 105 - Number of infrastructure providers by number of ADSL-enable exchanges - June 2006

Table 106 - ADSL2+ subscribers by provider - 2006 - 2007

Table 107 - Cable broadband subscribers per operator and annual change - 2001 - 2007