Australia's broadband love affair continues

Australian suppliers of broadband services have not seen a drop-off in subscribers, despite factors such as a slowing economy and ongoing complaints over service pricing and reliability.

-We haven't seen any evidence of people dropping off broadband services," said a spokesperson for Optus. -Our revenue from broadband and Internet usage is continuing to increase."

-The number of customers in our broadband customer group grew by 16 percent to 543,000 in the past year," she added.

Optus sees the continued growth of their broadband services, which include Optus Television and telephony as well as the high speed Internet connection service Optus@Home, as the result of its new bundled product packages, which combine two or more products together at a discounted price.

-Customers are very happy with the bundled packages," said the spokesperson. -Around 80 percent of our new customers choose a bundled package, and our churn rate in the past year has been reduced, which we also attribute to our bundled products."

Signs are emerging in the US that people are cancelling their broadband subscriptions, prompted by the sour economy, broadband price hikes and a continuing dearth of online content.

-I don't think people are leaving, but we have had to revise our forecast," said Emilia Wasiak, an analyst at IDC Australia.

IDC has revised its forecast for uptake of broadband services to 2.6 million users by 2005. This is down 60 to 70 percent on the previous forecast, which was made before the events of September 11 and the subsequent downturn in the global economy.

-We haven't noticed any drop-off in customer numbers in broadband. The numbers are tracking as we've anticipated," said Stuart Gray, corporate affairs manager for Telstra retail. He also claims the churn rate has not increased, despite recent plans to cap 'unlimited downloads' to three gigabytes per month. -Customer response [to this] has been in line with our expectations. We certainly haven't heard from all customers, but we think the majority will be fine."

Advertisement

Talkback 10 comments

    Thats it!!!!! I have been tram ...Anonymous -- 09/11/01

    Thats it!!!!! I have been trampled over by Ziggy one too many times. Now he's trying to rub his lies in my face. Well how about I run my car's tyres all over his face. That is unless someone gets him before I do.

    There is some truth in this st ...Anonymous -- 09/11/01

    There is some truth in this statement concerning no dropoff in subscription numbers to broadband however this is due to the fact there is no other options as Telstra make it non competative with the rates they charge other carriers wish to provide a service using telstra ( public paid for) infrastructure. So really how can there be any other choice but Telstra and they know it. I think things will become a little more heated now they are enforcing the 3GB cap and charging those who go over this limit at nearly 18 cents / 1000KB which is a lot higher than should be allowed and consider still be considered fair service standards. I would not use Telstra BB with the current arrangement and I tell all my clients that same thing.

    Last month I have clocked up 9 ...Obi|One -- 11/11/01

    Last month I have clocked up 9.5 gigabytes. At the moment I am paying $72, if the 3 gig limit is in place I would have to pay a $2000 fine. The majority of people will be fined is a more accurate description, so far I have not kept under the limit in every month i had a meter, now neither have most people I know so screw them THIS IS BULLCRAP I am switching to Optus as soon as it is available in my area.

    I beleive Telstra's comment on ...John Davey -- 12/11/01

    I beleive Telstra's comment on this issue sounds mopre like a political statement.

    In my case I would love to change services but can not afford to change.

    It's not like a dial-up account as the cable modems cost about $300 and are not compatable with each provider.

    I'm not getting broadband as i ...John Melville -- 12/11/01

    I'm not getting broadband as i think it is over-rated.

    I love my broadband........... ...justgeoff -- 12/11/01

    I love my broadband............
    And the more we embrace it the better everyone will be. Lets just hope telstra understands this.
    If broadband dies it won't be because of lack of content but rather the unreasonable prices telstra charges. I love my Optus@Home.......

    I find the reasoning behind Te ...Anonymous -- 12/11/01

    I find the reasoning behind Telstra's increased charges to be unbelievable. It has recently posted record profits and yet it is concerned about increasing the charges for our knowledge nation.
    Over the past 6 months, I have downloaded about 17Gb of information, however on the month in which I have downloaded 4.5Gb I will pay nearly $300. Is this fair? I think not.
    I have asked Telstra is there the capacity to cease non-free internet access, once the 3Gb Cap is reached, an incredibly solution one would think, however there are no plans to do this simple request. Why? because improved customer monitoring tools, allow the customers to do this for themselves.
    I am not one of the "minority" of users who is adversely affecting the "majority" of users with huge downloads, I am an IT Professional who is relatively responsible for his internet access, and someone who does not want to see a monoploy controling the future of broadband internet.
    One final point, if it is good enough for Optus to make a profit, why not Telstra when they supposedly have more subscribers?

    33k Modem is Cool :) Well, no ...Anonymous -- 12/11/01

    33k Modem is Cool :) Well, not really, but when you have a dedicated 24/7 Bigpond Direct connection @28.8k who needs BB? I do.. I want it! I almost signed up for TB ADSL, but pulled out at the last minute due to friends having major problems all the time. You wouldn't believe it, but Telstra actually phoned me up wondering why I have replid to any emails etc, or called them. Must be a lot of money to be made if one of them Telstra people phone up, coz when was the last time they phoned YOU up about anything else?

    Self praise is NO praise. THel ...Keith Styles -- 12/11/01

    Self praise is NO praise. THelstra has been patting its self on the back for as long as I have had anything to do with them and I am 66years old. They are so wrapped up in their own importance, they fail to appreciate the loathing so many people have for their poor Broadband service.
    My 512kbps ADSL has never been able to deliver full speed since the day it was installed. AT best I might receive 250Kbps.
    When I complained about the 3Gig cap, I was told "You can cancel and change carrier,without penalty" BIG DEAL!! There is no alternative to THelstra's copper in my street. just 5Kms from the Melbourne CBD. I thought we were supposed to be in the 21st Century?
    God I wish Thelstra's control of the exchanges would be totally taken away from them. Then we would have competition. THestra denies they charge other carriers as much or more for Broadband access, than they charge their own individual users and customers. We all know how false that claim is!

    Please Mr.Howard, give us fair competition. A forlorn hope I fear!

    I was considering signing up f ...Anonymous -- 14/11/01

    I was considering signing up for broadband, but having read the comments on various web sites I decided to stay with dial-up.
    I have no longer any plans in the near future to sign up for broadband.

Add your opinion

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Renai LeMay How reliable is IP telephony?
    Have you ever heard a weird kind of hissing, crackling or popping noise when calling someone on an IP telephony line? How rare is the phenomenon these days?
  • Array Forget the NBN, 100Mbps is already here
    Telstra and TransACT will shortly begin offering 100Mbps broadband to many customers. By moving early, the companies have not only raised the bar for Australia's broadband services, but thrown down a challenge to a government that now faces increased pressure to deliver the NBN as promised.
  • Array IT: Govt's cost-cutting bitch
    The government needs to stop looking at IT as a necessary evil or the place to remove costs when the Treasurer comes calling.
  • More blogs »

Tags

Back to top

Featured