Internet Industry Association

Competition in the wireless broadband market accelerated with the roll-out of High Speed Download Packet Access (HSDPA) technology causing dramatic declines in access pricing for consumers, according to the Venture Consulting/IIA Broadband Index.

Now in its third year of publication, the Index, reveals that since Q4 2006, the cheapest Telstra or Optus broadband wireless package for a 2GB / month user declined from $170.70 per month to $56.57 per month currently – a drop of 67%. For the first time, the Index also reviewed Vodafone and Hutchison’s plans and found that the same user could pay as little as $39.75 per month.

“Lower wireless broadband pricing will encourage entry level consumers to explore wireless alternatives. It will also be attractive to businesses users who will attracted to the added advantages of mobility,” IIA’s chief executive, Peter Coroneos, said

However, he added that cost savings need to be balanced against potentially lower speeds achieved by the wireless user as a result of ‘congestion’ in certain areas. The maximum advertised speed for wireless broadband were based on a single cell.

“The decline in broadband wireless pricing has been striking,” Venture Consulting’s director, Justin Jameson, said. “It has been driven by vigorous competition between the carriers for customers. The next twelve months will tell us if these prices are sustainable in the medium term.”

The Broadband Index analyses every internet access package offered by five major Australian ISPs (Telstra, Optus, iiNet, Primus, and Unwired). From this edition onward, the wireless broadband offerings of Vodafone and Hutchison were included.

The full report is available at: http://iia.net.au/images/resources/pdf/iia-release-broadband-index-q1-2009.pdf

It analyses some 155 different broadband packages across a wide range of technologies, including ADSL, ADSL2+, cable, wireless and satellite.

The report also reveals a leveling off of price competition in fixed broadband, operators as the market matures.

Nevertheless:

• Download caps of broadband service offerings continues to increase, with the average download cap of fixed broadband plans increasing from 10.1 GB/month in Q1 ’07 to 13.1 GB/month today
• Operators are reducing lower speed plans while increasing their higher speed product choices for consumers.
• Proportion of high speed (17Mbps+) plans of all fixed broadband offerings has increased from 21% in Q4 ’06 to 53% today

About the IIA

The Internet Industry Association (www.iia.net.au) provides policy input to government and advocacy on a range of business and regulatory issues, to promote laws and initiatives that enhance access, equity, reliability and growth of the Net within Australia.

About Venture Consulting

Established in Australia since 2004 Venture Consulting is Australia’s leading specialist media and telecoms consultancy firm. Venture Consulting has access to global resources across thirteen offices and five continents. It undertakes assignments for communication operators, service providers, broadcasters, digital media firms, Governments, regulators, vendors and financiers.