Broadband prices fell 9.4% in 2016–17

Real prices for fixed broadband services fell by 9.4% in 2016–17 and have been declining by an average of 4.5% per year, according to the ACCC’s latest annual report on competition and price changes in the telecoms sector.

The proportion of broadband plans with unlimited data meanwhile increased to 26%, up from just 5% in 2013–14. Fixed broadband accounts for an estimated 92% of all data downloads, and total data downloads grew by 43% over the year.

Prices of mobile services meanwhile decreased by 3.1% in 2016–17, with the market recording a four-year average annual price decrease of 7.1%. Data allowances increased by 46% over the year to a median of 2 GB and a mean of 3.5 GB.

The proportion of mobile users without a fixed-line home phone has increased to 6.7 million, the report found. On the fixed-line front, nbn activations more than doubled to 2.4 million, while services provided over Telstra’s legacy copper broadband network declined from 8.4 million to 7.5 million.

Telstra continues to have the largest market share over the nbn, at 50%, followed by TPG, Optus and Vocus with 23%, 13% and 8% respectively.

“The Coalition’s faster, more affordable nbn rollout is delivering lower internet bills and lower taxes for Australians,” Minister for Communications Mitch Fifield claimed.

“Labor’s nbn would have cost $30 billion more and increased internet bills by as much as $43 per month — over $500 per year. And despite this, Labor still wants to pour more taxpayer dollars into an unaffordable gold-plated nbn.”

Separately, nbn co has announced that the nbn rollout is 80% complete outside of major metropolitan areas, after activating 26 new fixed wireless sites in February.

“Reaching 80% complete outside of major metropolitan areas is a significant achievement. These new fixed wireless sites activated over February will help to connect thousands of regional homes and businesses in these communities with the world,” Minister for Regional Communications Bridget McKenzie said.

“It’s always exciting to see more areas switching on to the nbn. These sites are the latest of more than 1780 across the nation providing families and farmers with access to high-speed telecommunications. This new infrastructure is essential to connecting families and friends, ensuring they can take advantage of opportunities like distance education and working remotely with ease.”

Image credit: ©alphaspirit/Dollar Photo Club

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