Telstra's broadband targets 'soft': IDC

Analyst firm International Data Corp has criticised Telstra's target of one million broadband subscribers by 2005 as "soft", claiming the telecommunications heavyweight should exclude wholesale subscriber numbers from that figure.

IDC predicts the number of broadband subscribers in Australia will reach 2.7 million by 2007, equating to market penetration of 13 percent. This figure is based on a compound annual growth rate of 29 percent from the current broadband user base of 449,000.

Landry Fevre, IDC's research program manager, next generation networks, said Telstra was maintaining a very dominant position in the broadband market by owning most of the copper and cable network across Australia. In light of this, IDC says, Telstra should exclude wholesale broadband customers from its target. Fevre notes that despite have "all the characteristics of a sophisticated broadband market," Australia has so far failed to attract subscribers en masse -- an issue which is attributed to high residential broadband entry prices.

Efforts towards accelerating broadband takeup across the country are finally taking shape, but more needs to be done to remain competitive on a global level, noted Fevre. He added that the Australian government, as the majority owner of Telstra, is in the position of regulating a market it dominates.

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Talkback 3 comments

    I'm ammusing how everybody thi ...Anonymous -- 28/07/03

    I'm ammusing how everybody thinks that broadband in australia is over-priced especially the last mile with the exception of telstra.

    Time to wake up people, 500mb is not worth $90 get over it !!

    Of course the figures are rubb ...Keith Styles (An irate user) -- 28/07/03

    Of course the figures are rubbery. It's T(H)elstra who prepared them, what do you expect?
    The Board Room Mad Hatter's can't see the wood for the trees. Their Tea Party (If you haven't read Alice in Wonderland, go check it out!)just becomes more & more ridiculous every day. Why should anyone expect this Federal Government to regulate T(H)elstra. The di**head minister, Senator Alston doesn't have a clue & neither does his Department Heads. As long as the Government, the Minister and T(H)elstra all live with their heads up their ar*se, Broadband will never reach it's target market. The Home User can't afford the ridiculously over priced service. Dial-up is a much better choice, albeit slow, for the average user. Those who could use a Broadband service for streaming video, music, conferencing both local & overseas, are never likely to take T(H)elstra's Broadband service onboard. ITS WAY TOO EXPENSIVE. Wake up T(H)elstra!... you never learn..100% OF NOTHING IS NOTHING...It's very simple arithetic.

    Spot on. It's the subscribers ...Anonymous -- 01/08/03

    Spot on. It's the subscribers with little or no technical savvy that get suckered in, every time. They have no idea about what alternatives there are and they have no grasp of the concept of "download limits." It is the "newbies" that get hit with the enormous bills. Meanwhile, we've got a Telstra cable connection in our loungeroom, it even has a little "T" on the face plate. Yet, we are on 56k and there we shall remain until prices become more reasonable.

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