Wireless broadband use up 162% as Opposition questions NBN’s value

The number of Australians using wireless broadband services increased by 162% during 2008-09, along with increases in the number of 3G mobile and VoIP services, a new report from the communications and media watchdog shows.

But the federal opposition has said the increase in mobile broadband services undermines the need for the $43 billion National Broadband Network, saying the demand for fixed-line services is declining.

The Australian and Communications Media Authority report for 2008-09 shows a large uptake in the number of wireless and mobile services, along with a decline in fixed-line telephone connections.

During the 12 months to 30 June 2009, mobile network coverage increased with networks providing coverage to 96.22% of the population. There were 24.22 million services during the year, representing a 9% increase from 2008.

Internet subscribers jumped to 8.4 million from 7.2 million, with wireless broadband subscribers accounting for 25% of those.

The report also found the number of fixed-line telephone services actually decreased from 11 million in mid-2008 to just 10.67 million in 2009. At the same time, the number of Australians with access to VoIP services increased from 1.5 million to 2.5 million.

ACMA also said the number of 3G mobile services in operation as of June 30, 2009 was 12.28 million – a massive 44% increase from 2008. The report said this showed the diversity of consumer behaviour.

“The increasing importance of mobile networks as a revenue channel is demonstrated during 2008-09 where revenue from mobile services exceed PSTN revenue for the first time for Telstra, but continued from previous years for Optus.”

“The delivery of voice, data and content services over technologies such as 3G, internet protocol and wireless broadband services complements traditional PSTN-based services.”

The report stated Australian users are now opting for a variety of connections, rather than favouring one in particular, such as a fixed-line internet connection over mobile broadband access.

“Most commonly, Australian consumers are opting for a combination of fixed line telephone, mobile phone and home internet services, 53%, followed by all four types of communication, (fixed line, mobile, VoIP and internet), at 18% of respondents, and the combination of fixed-line telephone and mobile, 17%.”

The report also documented the online behaviour of Australian internet users, finding the average number of hours online each week increased from 47 to 57, while the number of users shopping online increased from 83% to 86%.

Additionally, the report found while 23% of internet users said they were updating some type of blog by mid-2008, that number increased to 27% by mid-2009. It also said online behaviour was changing, with more competition driving innovation.

“Over the 2008-09 reporting period, competition network and device convergence and changing consumer behaviour continued to drive development in the communication and media sectors of the Australian economy.”

“At the end of 2008, online advertising revenue had reached $1.7 billion, a 27% increase since 2007. Currently nearly 2.3 million Australians access online news sites such as news.com.au.”

But opposition communications spokesman Tony Smith said in a statement the report’s note of a 162% increase in wireless broadband services negates the need for the fibre-to-the-premises National Broadband Network.

”This evidence from Senator Conroy’s own agency highlights the utter recklessness of the Rudd Government in committing to the [network] without any semblance of cost-benefit analysis.”