Broadband services are critical enablers for access to information, employment, markets and key services. Consumer demand for broadband services has grown rapidly in the last decade with household penetration increasing to 85% in 2019 compared to 64% in 2009. This report analyses the competitive environment in the fixed broadband market, focussing on consumer price trends. In particular, we analyse the major RSPs – Telstra, Optus, TPG and Aussie Broadband to evaluate their broadband offerings in the retail market.

Contents

Key Takeaways

Introduction

• The fixed broadband market is evolving

Retail fixed broadband market shares

What’s on offer

• Telstra
• Optus
• TPG/VHA
• Aussie Broadband – a new challenger
• Dodo (Vocus)

More than just connectivity

• Growing significance of media including sports and gaming
• Convergence with energy and power?
• RSP pricing strategies

Could wireless disrupt the fixed broadband market?

• Optus 5G Fixed Wireless

COVID-19 impact

SMB broadband offers

• SMB Pricing Dilemma

Conclusion

List of charts/tables

Figure 1. NBN wholesale market shares – June 2020

Figure 2. Fixed broadband retail subscriber market shares

Figure 3. Market share by speed tier

Figure 4. Fixed NBN broadband pricing by RSP (A$ per month, September 2020)

Figure 5. Telstra broadband plans – monthly pricing (A$ per month)

Figure 6. Optus broadband plans – monthly pricing (A$ per month)

Figure 7. TPG broadband plans – monthly pricing (A$ per month)

Figure 8. Aussie broadband plans – monthly pricing (A$ per month)

Figure 9. Dodo broadband plans – monthly pricing (A$ per month)

Figure 10. Broadband take up by energy provider, by age group [Q. How likely are you to take up a broadband connection from your energy provider?]

Figure 11. Advantages of 5G fixed wireless over fixed line broadband picked by survey respondents

Figure 12. Optus 5G broadband plan

Figure 13. Business broadband pricing of the RSPs (A$ per month, September 2020)

Figure 14. Importance of broadband purchase factors

Figure 15. Small business interest in switching to 5G fixed wireless broadband

Figure 16. Willingness to pay more for 5G fixed wireless service