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ADSL2+ Holds Key to Immediate Need for Speed

ADSL2+ Holds Key to Immediate Need for Speed

Posted by Shara Evans in Press Releases 03 Dec 2008

  • ADSL2+ fills gap left by ailing NBN, FTTx to grow after 2010
  • Fast broadband predicted to grow four-fold in the next 5 years
  • Australian broadband to go mobile


Sydney, AUSTRALIA – 4 December 2008. With or without the government’s NBN, Australian users are switching to high-speed ADSL2+ services, a trend that will drive the next five years of broadband market development, according to Market Clarity.

Launching the November 2008 edition of Market Clarity’s Australian Internet Market: Market Tracker 2000-2013, Shara Evans, Australia’s foremost telecommunications forecaster and CEO of Market Clarity, said she expects higher speed services to continue dominating the broadband services market.

“Already, 54.6% of residential users are on plans faster than 1.5 Mbps,” Ms Evans said. “We expect the burgeoning ADSL2+ segment to become the driving segment in the broadband market to 2013.”

Although only 4.7% of residential Internet users had subscribed to ADSL2+ plans by June 2008, Market Clarity forecasts a flight to speed over the next five years, with ADSL2+ likely to comprise 52% of the market by 2013.

The shift will driven by a range of factors, Ms Evans said.

“Already, ADSL2+ plans are price-competitive with older services, and are backed by higher download allowances. At the same time, users are becoming more aware of content services like the ABC’s iView, and service providers are expanding their content portfolios.

“The combination of price and service features will make higher-speed services compelling to Australia’s Internet customers.”


The March of the Mobiles

The rapid growth of 3G services will be another factor changing the face of the broadband market over coming years, Ms Evans said.

Market Clarity is forecasting that by 2013, the mobile broadband subscriber base will come close to equalling that of fixed technologies, bringing Australians closer to being a truly “always-connected” society.

Rapid growth in the mobile broadband market should offset the likely flattening of the fixed broadband market as the number of subscribers approaches saturation.

“While the explosion in mobile broadband will maintain overall revenue growth in the broadband market, it will at the same time concentrate that growth towards the four mobile carriers,” Ms Evans said. “Traditional fixed broadband providers will only experience relatively flat revenue growth towards 2013.”

As a result, she said, fixed broadband providers face an extremely challenging time ahead: while intense competition will keep prices down, providers face he need to invest in new infrastructure, both to expand their ADSL2+ footprint and to meet the requirements of the Federal Government’s NBN.


About the Report

Market Clarity’s Australian Internet Market: Market Tracker 2000-2013 provides historical data from 2000 to 2008 and forecasts through 2013. The Australian Internet Market: Market Tracker 2000-2013 is based on interview data and published data from 25 carriers and ISPs.

The report includes 76 charts, with analysis including:

  • Internet SIOs and revenue by broadband / narrowband;
  • Broadband SIOs and revenue by technology;
  • Broadband SIOs by speed;
  • Internet and broadband SIOs by residential / business customers;
  • Metropolitan, regional and state-by-state breakdowns;
  • Industry breakdown by industry size and industry vertical;
  • Internet SIOs by wholesale / retail providers;
  • Narrowband and broadband ARPU;
  • Fixed and mobile broadband ARPU;
  • Residential and business Internet ARPU;
  • Market share by provider for narrowband, broadband, mobile, wholesale, residential and business markets by SIO;
  • Share of market revenue by provider for residential, business, narrowband, broadband, and wholesale services; and
  • ARPU by provider for fixed narrowband and broadband services.


About Market Clarity

Market Clarity is an award-winning telecommunications analyst firm founded in January 2006 by leading Australian telecommunications researcher and strategic consultant, Shara Evans. The firm covers all aspects of telecommunications, including traditional and converged services and technologies. Market Clarity’s extensive databases of technical and market information cover a wide range of facts and figures on the technologies and services that are shaping the Australian telecommunications market. Market Clarity’s GIS tools and research databases enable the correlation and presentation of highly complex information in an intuitive geographic (map) format.

Market Clarity’s insights are derived from a deep understanding of technology, coupled with comprehensive research, which examines each segment of a service’s value chain as well as underlying population demographics. By leveraging its engineering knowledge with an ongoing primary research program, Market Clarity provides insight, intelligence and advice on all aspects of the Australian telecommunications market including traditional, converged and future technologies. Market Clarity’s unparalleled market knowledge and research databases are brought to all consulting engagements.

Market Clarity’s contribution to telecommunications in Australia was recognised by the telecommunications industry’s peak body, the Communications Alliance, which awarded the company its 2007 ACOMMS award for Services to the Industry – Professional Services.

Market Clarity is headquartered in Sydney, Australia.