Based on Venture Insights' latest consumer survey, 30% of fixed broadband households are at risk of switching to wireless. These households exhibit a growing acceptance of wireless services and some doubts about NBN service quality.
As mobile technology and customer plans improve, the threat of mobile substitution to fixed broadband increases. There are a range of drivers and inhibitors for fixed mobile substitution making segmented sales campaigns important.
Advances in mobile broadband technologies combined with increases in smart device penetration has delivered significant growth in wireless broadband usage. As consumers rely more and more on wireless broadband connectivity, customers may look to cut their fixed broadband connection and rely on wireless devices for broadband connectivity.
Fixed to mobile broadband substitution may therefore threaten the viability of fixed networks by reducing the overall fixed customer base. This risk has been echoed by several industry players including NBN’s chairman, Dr. Ziggy Switkowski who recently said “wireless broadband will be a legitimate alternative to fixed broadband in the 2020s for some applications – more than we may have assumed 5 years ago”. The ACCC in its recent draft communications sector market study also highlighted the potential of 5G to increase fixed to mobile and wireless substitution.