Australia's shrinking ISP competition

Internet Activity Survey reveals dramatic drop in mid-sized ISPs

New statistics published today as part of the Australian Bureau of Statistics' Internet Activity Survey (IAS) have revealed that the number of players in the ISP market is continuing to shrink.

The June 2012 IAS recorded a drop in 'medium ISPs', classified as those with more than 1000 but fewer than 10,000 subscribers, of almost 25 per cent since the June 2011 IAS. It only recorded one extra 'large ISP' during that same period (10,001-100,000 subscribers). 'Very large ISPs' (100,001+ subscribers) shrank by from 10 to eight.

According to the ABS, part of this change can be attributed to changes in reporting by some ISPs, but largely it represents consolidation or ISPs dropping below the 1001 subscriber threshold.

The IAS also recorded 10 per cent increase in Internet connections in the space of 12 months. Downloads grew by over 50 per cent in the same period, from 274,202TB to 414, 537TB (the statistics for data were drawn from ISP with 1001+ subscribers).

The number of mobile handsets in Australia grew from 13.3 million to 16.2 million, while mobile data downloads have grown more than 75 per cent since June 2011.

3 Comments

Ressy

1

and with the NBN conditions, that market will shrink a whole lot more in the next few years, typical labor governments, all they do is destroy businesses, and outlawing competition - controlling monopolistic freaks...

Steven

2

We were a small ISP and shut down our business over 1 year ago. We were relying on the wholesale supply but our buy price became more that the average retail price.

The industry is finished and only the big fish will survive.

gnome

3

Competition worked SO well for endusers with the HFC. Not.

Without a national planning approach, the NBN infrastructure would have finished up exactly like the HFC debacle - competition in the high density hotspots as the big cashflow suppliers battled it out, and nothing anywhere else.

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