Broadband market now worth $2 billion but $$ growth slowing

Stuart Corner
Tuesday, 21 November 2006 08:47

IT Industry - Deals

According to estimates from Market Clarity, broadband revenue in Australia has passed the $2 billion market in 2006, from 3.52 million users (as at June 2006).

Market Clarity estimates the number of users will almost double to more than 6.8 million by June 2011 but says: "Intense competition between providers is likely to squeeze revenue growth, so...revenue will only rise to $3.24 billion by June 2011."

According to Market Clarity CEO, Shara Evans, "As service ARPU and margins decline, providers will need to pay more attention to retaining customers and offering them high-margin value-added services."

Evans expects ADSL to remain the dominant broadband technology in Australia for the foreseeable future, accounting for nearly five million of the 6.8 million services in operation by June 2011. The remaining customers will be spread between cable (HFC, wireless customers, and satellite broadband. "Other access technologies such as fibre-to-the-home and broadband-over-powerlines will struggle to attract a significant share of the market except in areas where ADSL is not available," she said.

Market Clarity' expects usage off today's 'entry level' broadband of 256kbps expected to peak next year.