Forecast on Australia broadband market trends

The fixed communications market in Australia is expected to achieve a compound annual growth rate (CAGR) of 0.7 percent from 2022 to 2027, says GlobalData.
Australia broadband marketDespite an anticipated decline in fixed voice revenues, the rise in fixed broadband service revenues is expected to offset this, leading to an overall increase in the fixed communications market from $8 billion in 2022 to $8.3 billion in 2027.

Fixed voice service revenue is expected to decline at a CAGR of 3.4 percent over 2022-2027 due to the drop in the fixed voice average revenue per user (ARPU) levels.

Srikanth Vaidya, a Telecom Analyst at GlobalData, believes that the decline in fixed voice revenues will be caused by subscribers’ inclination towards mobile and OTT-based communication services in the coming years.

Fixed broadband service revenue is expected to increase at a CAGR of 2.1 percent, driven by the growth in fiber-to-the-home/business (FTTH/B) subscriptions, as the government expands coverage nationwide, the report said.

In 2022, fiber lines accounted for 71.5 percent of the total fixed broadband lines, which is anticipated to increase to about 75.3 percent in 2027, thanks to the rising demand for high-speed internet services in the country and the government’s focus on aggressive fiber network expansion nationwide under the National Broadband Network (NBN) project.

NBN aims to extend the Fibre to the Node (FTTN) to FTTP network upgrade program to about 3.5 million premises by the year-end 2025.

In June 2022, NBN customers in around 160,000 premises served by Fibre to the Curb (FTTC) in New South Wales, Victoria and South Australia were able to upgrade to Fibre to the Premises (FTTP).

Telstra is expected to lead the fixed voice services market through 2027 in terms of subscriptions, supported by its foothold in the VoIP segment.

Telstra will also lead the fixed broadband market thanks to its focus on fiber coverage expansion and promotion of cost-effective multi-play plans at discounted prices.