Australian broadband among world's worst: OECD

The OECD has passed judgement on Australia's broadband in a study calling it among the slowest and most expensive in the world, however, Communications Minister Helen Coonan claims it was a "strong report card" for the nation's infrastructure.

The OECD (Organisation for Economic Co-operation and Development) Communications Outlook 2007 report found that Australia's broadband was among the world's most expensive and among the slowest.

The OECD report studied the average download speed for the incumbent telco -- in Australia's case Telstra -- in each of the 30 industrialised countries that are OECD members and found Australia second from bottom, beaten by the likes of Poland, Belgium and Mexico.

It doesn't seem to be dampening Aussies' enthusiasm for Web surfing, however, with the country rated as having the third highest Internet penetration in the OECD area, behind Sweden and Switzerland. However, the country only managed to scrape a middling ranking for DSL subscribers, with some 17 per 100 inhabitants at June last year.

"The quality of the Internet experience for entertainment, business and e-commerce depends upon bandwidth and ready availability," the OECD report notes.

As well as speed issues, the country is also experiencing some of the highest telecoms prices across the board, with small business fixed line bundles, SOHO fixed line bundles and some mobile phone plans found to be above the OECD average. Australians also make mobile providers more money than most other countries, generating US$634 per year per subscriber. The only other countries in the OECD area that spend more are Iceland at US$654 and Japan, at US$860.

Communications Minister Helen Coonan, however, preferred to concentrate on the upside of the report, such as Australia's relatively high level of domain name registrations per capita.

"This is an outstanding achievement considering the particular challenges of providing telecommunications access at fair prices over a vast continent with a small population," she said in a statement.

Not everyone is convinced. David Forman, chairman of the Competitive Carriers Coalition, said that Australia should be ashamed of its performance.

"The countries we are keeping company with [in broadband] are not the countries we should want to be associated with. This is a problem that has been 20 years in the making and it's only going to get worse.... If we measure ourselves in isolation then yes, prices are falling, but they're not falling fast enough [compared with the rest of the developed world] and we're not catching up," he told ZDNet Australia today.

Forman said the country has not yet reached the competitive environment needed to bolster broadband -- a problem that the coalition believes can only be solved through the structural separation of Telstra.

Talkback 31 comments

    Hmm Anonymous -- 17/07/07

    One can only say, Telstra sucks balls

    No Kidding!! Anonymous -- 18/07/07

    I moved to Brisbane about 4 years ago from London. At the time I paid about the same amount (AU$90/GBP38) as I pay now for broadband, for a similar quality service as I get now (but with no download limits, you're paying for speed not volume). So not only are we 4 years behind in pricing and service, but UK earnings/cost of living are way more than double, so the percentage we are spending for half decent access is just criminal, regardless of the, admittedly great, differences in distances and population.

    Good one, Helen Anonymous -- 18/07/07

    More domain names per capita makes us advanced? Ms Coonan, I doubt if you know what a domain name is, judging by a the ignorance you displayed in a recent TV interview where you referred to bandwidth as a unit of "power".

    Domain Names Anonymous -- 18/07/07 (in reply to #320082927)

    Couldn't agree more.....what does the ratio of domain names have to do with broadband?? Domain names existed in the days of dialup & they still exist now.......I think you'd best find another "adviser" to replace the one that gave you that "gem".....LOL....I, too, doubt she'd have a clue what a domain name was!!!

    my god the government has a lot to answer for Anonymous -- 18/07/07

    Doesn’t this suggest the Communication minister is … err… how can I put this… incompetent at her job? Why are ministers who know nothing about their sector put in positions they are not qualified to run? Howard should not be saying “is it me?” he should be saying “WTF are you people doing?” Basically, the infrastructure was sold to private enterprise so it can not improve as there is no benefit in improving it! What moron actually thought the telecommunications system would improve by selling the infrastructure arm of its services then mandating all competitors can use it too. Why on earth would Telstra invest billions to fix it when it still “kind of” works and there is no alternative for people to flock to? And why should taxpayers spend billions to fix it up when Telstra (a private company) will benefit at no cost (i.e. we all pay to benefit Telstra shareholders)? perhaps the government can buy it back and then run it independently. I agree with privatisation for efficiency, but not for moronic inclusion in federal budget surpluses.

    The state of telecommunications in Australia has literally fallen from world class to worst of the world followers. And now the minister of communications says we should look at the positive? What are you thinking? Invite the criticism as its free advice on how to do your job!

    Australia's Telco Performance Anxiety Anonymous -- 18/07/07

    ditto to all comments so far, especially the appraisal of Senator Coonan's capacity to perform in this role. To suggest that domain name registration balances out the other appaling performance and pricing issues is a serious detachment from reality.

    Now, what are we going to do about it? Vote differently, for a start!

    Telco performance Simon -- 18/07/07 (in reply to #320082935)

    What a suprise, bottom of the list! I do however disagree that prices are falling, all I've seen lately is data caps being lowered and the price rising. Also, given that most Australians live in the capitol cities, why do we always hear that it's the tyranny of distance holding us back? By rights, our metro services should be on a par with any other country you care to name as the population densities are similar.
    The Howard Govt have wrecked the information economy ans should be held accountable. They ,after all, went ahead with full privitisation against the advice of the experts, and the experts have been proved right.

    The report is surprising Peter -- 18/07/07

    I read it and discovered the following details:

    1) Australia has the second-slowest maximum broadband speed of all OECD countries (the Slovak Republic was lower).

    2) DSL is available to 81% of the population, which is one of the lower figures but not the lowest. Although in Canada it's 75% of population and in the US it's only 78% of lines.

    3) In terms of dialup subscribers we are almost exactly the same as Germany (about 60%). Only five of the 28 other OECD countries were worse off than this (NZ, Ireland, Czech Republic, Poland and Greece).

    4) Despite all the above, investment in telecoms in Australia is actually much higher than most other OECD countries (US$210 per capita, only Switzerland was higher at US$217).

    Which begs the question - what the hell are the telcos (mainly Telstra I guess) spending all that money on?

    Spending? Anonymous -- 18/07/07 (in reply to #320082947)

    That's easy - Telstra etc are making up for a combination of under-investment and bad investment choices since the 1990's.

    As for profit - well they did let the wolf into the chicken coup didn't they...

    Some facts Carlos Khouri -- 18/07/07

    Australia's population is 21million, the land mass is 7.6million sq km, 99% of the population is spread over 2million sq km. We have roughly 11 people per sq populated km.

    Compare that with USA, 301million people crammed into 9.1 million Sq km (~7 million populated) or 44 people per sq km. Slovenia 2 million people, 20,000 sq km or 100 per sq km.

    International distances are much longer so cable runs are also much longer and costlier to maintain then these places.

    misleading Anonymous -- 18/07/07 (in reply to #320082955)

    Population density in Australian cities (where most of us live) is much the same as it is in much of the US and many other countries.

    And links to other countries don't make any difference on the maximum speed available in my suburb being so slow!

    Low hanging fruit Anonymous -- 18/07/07 (in reply to #320082960)

    The government wants regional areas not to be disadvantaged and as such population density is important.

    International Distances Anonymous -- 18/07/07 (in reply to #320082955)

    Phooey! Long distances and isolation are not a problem of Australia alone. Many other countries address it with wireless and satellite technology - leave the cables in the cities where they are economical and the airwaves are already crowded out.

    Looks like you will be happy soon Anonymous -- 18/07/07 (in reply to #320082967)

    Now that OPEL will be spending $1B of our money to build a wireless network then your comment means we will be on top of the OPEC tables soon. Lets see how right you are in 12-24 months.

    OPEC or OECD Aaron -- 18/07/07 (in reply to #320082978)

    Looks like you have oil on the brain, don't you mean OECD.

    some real facts Anonymous -- 16/05/08 (in reply to #320082955)

    countries like Sweden and Denmark have the cheapest broadband and have similar density and geographic issues. The excuse that all telstra sycophants use is DENSITY Australian cities are large & when they have been charging 30$ a month for years on line rental with no upgrades. Their record profits given to their executives would be better spent on Infrastructure and then maybe we can claw our way back from the bottom of the ladder.

    Ha Ha, 10 Months and you still get it wrong See you next year stupid -- 16/05/08 (in reply to #320101895)

    Telstra has previously requested pricing bands to cater for the higher costs in regional areas and lower costs in metropolitan areas but this has been denied by the ACCC so the reality is that companies can choose not to service areas as they are too far away but Telstra can not. Why do you think there are so many providers in the main capital cities and very few, if any, in regional areas?

    You claim the countries mentioned have similar densities and geographic issues. Let's look at some facts.

    Sweden is 450,000 sq km with a population of 9.5 million. It has 10 times the population density of Australia, even removing the isolated and desert areas in Australia from the calculations we are still still 4 times more disperse then the Swedes.

    Denmark is about 45,000 sq km with over 5 million population. An actual density of 129 people per sq km compared to Australia's ~10 per reasonably populated sq km (only 2.2 if you include all land mass).

    The distance of under sea cables to the US west coast is 9,000km, to Europe even further. For the countries you mention they are in Europe and are 1/4 the distance to the US, mostly above land and can hop on to much larger bandwidth pipes as it passes through the rest of Europe.

    For someone who writes "some real facts" as a heading you have not stated a single one.

    dense use density Anonymous -- 16/05/08 (in reply to #320101907)

    how come everyone who sticks up for telstra uses the lame aurgement about density Australia HAS large cities if you read these quotes "The research records Australia as the least densely populated country of the 30 surveyed in the report. Only Iceland and Canada have, like Australia, a population density of less than five inhabitants per square kilometer "& " According to the statistics, Australia is one of a diminishing group of countries which still offers broadband caps. The US, Sweden, Norway, the Netherlands, Korea, Japan, Italy, Germany, France, and Finland no longer have plans offering caps. Of countries where caps are used, Australia has the fourth most expensive average charge per excess MB."taken from this page http://www.zdnet.com.au/news/communications/soa/Australia-now-in-broadband-speed-top-ten/0,130061791,339283563,00.htm where we are ranked 23rd of 30 price per mb so this argument about density does not add up or the people in Sydney would be paying the same as some of similar sized cities around the world but instead they are paying extortionist rates! Until we can compete without caps & with competitive pricing we are competitive with the undeveloped world only

    Amazing what facts people can find Anonymous -- 17/05/08 (in reply to #320101967)

    Look hard enough and everyone will find some facts to support every argument.

    Like this one ... 9 out of every 10 idiots use the internet to hide how stupid they really are.

    broadband Anonymous -- 19/07/07

    some very confused sad people out there

    Helen's glass must be half full (with drugs) Anonymous -- 19/07/07

    How does Helen Coonan get off on giving Australian internet services a "strong report card" is beyond all logic. Clearly, she has no understanding of what constitutes a modern service and seems to have her head stuck back in the era of the steam engine and straw hat.
    Perhaps Helen should consider using land line like some of the people in suburban Adelaide how are refused to even get a broad band service of any kind because Telstra were too cheap to even provide adequate wiring to the premises (pair gain rubbish).
    In order to set things straight, Telstra should not be the sole controller of the existing network infrastructure. How can other telco's hope to compete properly let alone reduce prices? Also we should have a minister that serves the interest of its namesake rather than the narrow band mentality that Helen has consistently shown over the years. Frankly, I don't see haw she gets to keep her job! Surely we could find some - anyone that could do a better job of acknowledging our pathetic internet speeds and quality of service. Google that term Helen!

    people should boycott Telstra Anonymous -- 19/07/07

    Because of Telstra's monopoly of the infrastructure.. subscriber's pay a hefty price.

    I've been to a 3rd world/Developing country like the Philippines and they have unlimited fast broadband for only $30/month, and no LINE RENTAL fees for the home phone whatsoever...and that was 3 years ago!

    Dialup or Broadband>? Anonymous -- 28/10/07

    Theroetically dialup has a speed of 56KBps, and my broadband is usually 128 or 256 KBps right? well can anyone explain when i download a song from iTunes or a file of the net, why the hell is it going at 22KBps?? (reduces to about 6 after we exceed our limit. Dialup would be faster (theroetically) and at $10 per month compared to $30?! I would move back to dialup

    re: Dialup or Broadband>? Anonymous -- 29/10/07 (in reply to #320088746)

    The first point is dial up is 56Kbps not KBps, KBps means kilobytes per second and makes everything incorrect by 8 times.

    Typically on dial up you could 40 - 50Kbps depending on line quality although this could be more or less, this is a rate negotiated speed and I was able to get around 48Kbps (6KBps) at my house in the 90's.

    Using the same logic, if you currently have a 256Kbps ADSL then the maximum speed you will get is 32KBps download speed.

    22KBps = 176Kbps

    There are many other factors including TCP windows, round trip delay, the hosting ISP's backbone that impact your download speed which would add too many words for this forum..

    Telstra - Ripp Off & Cruddy ? Anonymous -- 23/11/07

    Telstra Sucks - I Agree - TPG FTW

    Blame Coonan/Howard Anonymous -- 16/05/08 (in reply to #320090403)

    Here we go again..lets all BAS big BAD Telstra!!! YYAAAAAAWWWWWWWWWNNNNNN!

    You guys are so lame!!!

    I put a lot of the blame at the incompetence of ALSTON/COONAN and Howard.

    Atleast CONROY has made some decisions in the National interest instead of pandering to their mats like the OPPOSITION!!!

    Blame the ISPs Mel Sommersberg -- 18/09/09 (in reply to #320101917)

    Why blame John Howard? He didn't force any ISP to offer lousy products and rotten service and charge us all a king's ransom in exchange for it.

    Im ashamed Anonymous -- 10/07/08

    In a few words year 2008 i still can play xbox 360 online with an acceptable speed without having to pay 100$ p month .
    The telecommunications people in Australia are just plain stupid or we are the stupids ones who actually pay for the “service”

    For Real Anonymous -- 30/06/09

    When I first came to Australia I went to an Optus shop to get internet and asked the guy if he had an unlimited deal rather than the 25 Gb. He said in a very retarded way, "who needs more than 25GB a month and laughed" I felt like punching him in the face. Let alone the speed. I lived in countries where QoL was lower but the QoS was much better. I felt ashamed being here.
    In this aspect I also felt like I "moved back in time".

    Pretty retarded Australia Anonymous -- 18/09/09

    When I compare my bigpond monthly download rate with what I had in Germany 8 years ago (no need to talk about other aspects of life), I can understand how the Australian politicians use the folks ignorance to lie.
    Looks like ignorance is a bliss in this COUNTRY.

    Right and wrong Mel Sommersberg -- 18/09/09 (in reply to #320313752)

    To think that Australians are being rorted by ISPs is correct but to think that we don't know we are being ripped off and quite incorrect.

    If you syphon through the hundreds of posts by visitors on these forums you should come to the conclusion that in a general sense we are quite well aware that we deserve a better deal, regardless of which ISP we are connected through.

    Personally I don't think any ISP gives us a fair deal but some are definitely better than others. At the end of the day however they are all licences to print money and they don't give a damn about their customers as soon as they sign us up.

    Things like fixed contracts, paying an extra month once ties are severed and no service level agreements are thrust upon us and there is no alternative.

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