nbn market report

Details

Every quarter the ACCC releases a report on the services operating over the NBN wholesale network. The report provides some interesting insights into the NBN, here are some that we find useful.

Number of services

The report shows that over 2.5 million premises are connected to the NBN as at June 2017.

Fibre to the Premises (FTTP) is the primary technology used. The number of services over both Fibre to the Node (FTTN) and Hybrid Fibre-Coaxial (HFC) technologies are increasing at a fast rate. The graph below charts the number of services for each quarter by access technology.

 Graph breaks down the number of services by technology type between March 2016 and June 2017. FTTP has increased from 762 thousand to 1.12 million, FTTB has increased from 8 thousand services to 63 thousand services, FTTN has increased from 36 thousand to 91 thousand, Fixed wireless from 101 thousand to 189 thousand. HFC services were launched late 2016 and there are now 153 thousand services. Sky Muster Satellite also launched services late 2016 and now has 75 thousand services.

 Figure 1: Number of services by access technology1

Contracted capacity

Contracted capacity is an important factor in the quality and speed of services. Poor speeds are one of the most complained about issues over NBN, one reason for this could be a low amount of capacity2.

The ACCC reports reveal total capacity and can be used to average the capacity per premise.  After over a year of fairly consistent provisioning (around 1Mbps per consumer), the most recent report (June 2017) shows an increase in the average amount of capacity per premises, both overall and for each state group (graph below). However, this is only an average - actual capacity will vary by Retail Service Provider and area.

 Graph shows the average capacity per premises by state area and total. All areas saw an increase in the last quarters report (June 2017). SA/NT have the lowest report average capacity per end user.

 Figure 2: Per end user provisioning3

Speed tiers

There are a number of speed tiers available over the NBN.

25/5Mbps is the most popular speed tier, with over half of all premises choosing this speed tier.

Premises using the Fixed Wireless technology are least likely to choose the slowest speed tier (12/1Mbps plans) while premises using the HFC technology are most likely to choose the higher speed tiers (50/20Mbps and 100/40Mbps), graph below.

 Graph shows the take up of different speed tiers over each of the technology types. 25/5Mbps is the most popular speed tier across all the technologies, followed by 12/1Mbps.

 Figure 3: speed tiers by access technology June 20174

Market Share

The report also provides insights into the market share of each access seeker by technology type.

Telstra has the highest market share, with one in every two NBN connected premises being with Telstra.

However, there is variation over each technology. The graph below shows the top access seekers by each technology.

 Graph shows the market share of access seekers by each technology type. Each technology as a slightly different make up of access seekers. Telstra’s market share is strongest over FTTN technologies (nearly 59%) and weakest over HFC (40%) [Telstra do not offer Sky Muster satellite services]. APN has the biggest market share over Sky Muster Satellite service

Figure 4: Access seeker market share by technology5

 Future of the report

The ACCC recently consulted on the future of this reporting. ACCAN is keen to see this reporting continued and for further information to be released. Read our submission here.

 

Download: docxnbn market report.docx406.98 KB

 

Sources:

1. From Table 1

2. TIO Complaint Statistics

3. Taken from Table 2 (sum of contracted CVC capacity) divided by Table 6 total count of end users.

4. Table 1, limited to the 5 common residential speed tiers.

5. Table 4

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