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IDC Recommends 7 Key Steps to Accelerate the Australian Broadband Market

  • 13 October, 2004 14:56

<p>NORTH SYDNEY, October 13th, 2004 – IDC has recently released a report titled "Australia Broadband Market Update: Seven Steps to Move from Backwater to Leader, 4Q04". According to this report IDC has revised its broadband forecasts upwards and found that the Australian broadband market is slowly getting off the ground in terms of residential broadband penetration, price acceptance and competition level. IDC predicts that by the end of 2004, 1 out of 4 internet access users in Australia will be connecting using broadband, and this ratio becomes 1 dial-up to 1 broadband subscriber by 2007.</p>
<p>"IDC estimates that the total number of broadband subscribers will reach 1.5 million by the end of 2004 and predicts this to reach almost 4 million subscribers by 2008. The residential broadband market is expected to have the strongest growth in 2004, and will grow by more than three times by 2008. In terms of revenue, the Australian broadband market will reach almost A$1.2 billion dollars by the end of the year", said Landry Fevre, IDC Research Director for Telecommunications.</p>
<p>A series of announcements and events in 2004 are leading the Australian broadband market to a faster growth mode. Some key announcements around DSL infrastructure from iiNet, OntheNet and Primus will have a profound impact on the overall broadband market. Despite the latest developments, it is a worrying trend that Australia’s broadband market is not likely to catch up to other developed countries, but rather, barely keep up.</p>
<p>IDC has outlined the following seven recommendations that would accelerate Australia's broadband adoption:</p>
<p>1. Unlock broadband speed by removing DSL network speed cap;
2. Lower ULL (Unbundled Local Loop) price and benchmark it against a pool of other OECD countries;
3. Develop a strong nationwide broadband initiative for local councils to enable its citizens and enterprises;
4. Set-up a powerful broadband regulating and policing body;
5. Telstra’s sale of Foxtel;
6. Adopt a strong policy on wireless allocation especially in regional and rural areas;
7. Divest HFC (Hybrid Fibre Coaxial) infrastructure (long-term).</p>
<p>"Some of these steps could be implemented very rapidly while others are long term, but all are key steps required to see Australia remain on par with other OECD countries. Australia should be at a stage where broadband availability is no longer an issue, especially considering there are still many under-served areas, equipment cost is decreasing and demand is proven. The government's attention should shift to broadband quality and usage", added Landry Fevre.</p>
<p>For press enquiries please contact:
Landry Fevre
Research Director, Telecommunications
Email: lfevre@idc.com
Phone: 61 2 9925 2252</p>

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