Broadband growth slowed over period leading up to recent price reductions: ACCC

Australians were continuing to take up broadband services prior to recent price reductions, but at a slowing rate, according to the latest Australian Competition and Consumer Commission Snapshot of Broadband Deployment update issued today.

"The report shows that as at the end of December 2003, there were 698,700 broadband services connected across Australia, up from 363,500 at the same time last year", ACCC Commissioner, Mr Ed Willett, said.

The rate of growth slowed over the last three quarters of 2003, with growth of 14.4 per cent in the December 2003 quarter following growth rates of 18.2 per cent in the September 2003 quarter and 22 per cent in the June 2003 quarter.

"The 14.4 per cent growth rate for the December 2003 quarter represents the lowest quarterly increase recorded in the period covered by the survey.

"However it should also be noted that these growth figures pre-date the changes in pricing structures for broadband services that began in February 2004", he said.  "The impact of these changes will not become evident until take-up figures become available for the March 2004 and June 2004 quarters".

Background

Broadband in Australia is predominately provided using either Hybrid Fibre Coax (Cable) or through Telstra's traditional copper network using digital subscriber line (DSL) technologies.  The growth in these DSL technologies continues to be the main driver of the growth in broadband connections.

In May 2003 the Minister for Communications, Information Technology and the Arts issued the ACCC with a direction requiring a quarterly report monitoring and reporting on competition in broadband services.  This report will replace this series of reports.  The ACCC is currently working on implementation of this determination.