Wired Takeup Rate Trend (52.2%) – recovering
The “Wired” NBN Market encompasses FTTP, FTTN, FTTB and FTTC Technologies
After being in a steady decline for the previous three Quarters the Wired Takeup Rate has bounced back strongly to 52.2%. This reversal should be welcome news for NBN and over the longer term should converge towards the Greenfields takeup rate of ~ 63%.
Key drivers of increased takeup include:
- Increasing use of Video on Demand Streaming content (via Netflix, Stan, FoxTel etc)
- Increasing availability of “Catch-Up” TV programs (iView, Plus7 etc)
- Increasing demand for 4k video premium streaming (indirectly driven by increasing size and clarity of flat screen TV’s)
- Increasing culture of WFH (Working from Home) requiring reliable bandwidth
- Increasing use of Web based “free” Video Conferencing (Zoom, Skype, Slack, GoToMeeting etc)
Threats to increased takeup include:
- High Wholesale costs and hence high retail costs of services
- Providers clinging to use of 2 Year contracts which don’t suit the mobility of younger demographic
- “Voice only” customers moving to lower cost alternatives (ie mobile phones)
- Continuing Press coverage of poor NBN performance experiences delaying decisions
- Availability of Central Business District alternate fibre networks at significantly reduced costs
Wireless Takeup Rate Trend (36.8%) – steady increase
Wireless Takeup rate continues to increase and is trending towards ~39%, which would be a respectable outcome under competition from the increasing threat of Mobile Broadband. Mobile Broadband whilst providing similar performance levels remains significantly more expensive.
Wireless Broadband (with its much higher performance and reliability) is now contributing to the decentralisation of small businesses, especially with the availability of 50 Mb/s services.
Satellite Takeup Rate Trend (18.9%) – steady increase
Satellite Takeup rate continues to increase and is trending towards ~25%. This isolated Market has no real competition at present and its growth is associated with smaller niche players servicing this specialised market.
Definitions
Active NBN Premises = Premises with an Active paid Customer connection
Serviceable NBN Premises = Premises which have NBN available right now
NBN Take-up Rate = Active Premises / Serviceable Premises
NBN = Australian National Broad Network http://nbnco.com.au
Disclaimer: Datahub Pty Ltd provides data processing and analytical services for Telecommunications Industry but is not affiliated with nbn. All analysis is provided from publicly available data sources.