The broadband market is set to grow by 36% in 2005. 69% of households will be online by the end of the year according to a new research study.

Australia’s “at home” broadband market is set to reach $1.3 billion in access revenues by the end of 2005, up 36 percent over 2004, according to a new study from Frost & Sullivan Australia. Industry revenues are forecast to reach $2.5 billion by 2010.

F&S defines the “at home” broadband market as all broadband access connected to a “household residency”. This includes households purchasing broadband, as well as broadband purchased by a business for home offices.Frost & Sullivan estimates that by the end of 2005, 69 percent of households will be online, with 35 percent using a broadband connection. This equates to a total of 1.9 million “at home” broadband connections.

The survey also found the majority (83 percent) of “at home” broadband products are purchased by households, with the remaining 17 percent purchased by home-based businesses with an ABN. “The rise of broadband households represents a growing audience for digital media. Applications that are currently being used in an illegal or ad-hoc way represent an unmet demand for emerging content services,” says Chia Seiler, telecommunications analyst at Frost & Sullivan.

“Although meeting these needs presents challenges, ultimately addressing this audience will allow the industry to offset declining access revenues through the provision of value added services”, he says.The report examines what Frost & Sullivan sees as the applications driving broadband adoption, including VoIP, personal productivity, teleworking, Internet connectivity for the digital home, online gaming and interactive entertainment. Frost & Sullivan identifies the key elements of the digital home as consumer digital devices, digital TV, pay-TV, home media centres, and gaming consoles. The report outlines the level of current and expected penetration across all of these technologies.

Traffic to the SmartHouse web site www.smarthouse.com.au has grown by 40% in 12 months with the site now generating on some days in excess of 25,000 unique visitors a day. At weekends the peak times are between 2.00pm and 6.00pm with visitors returning between 7.30pm and 11.00pm. On a weekday the traffic is continious between 100.AM an 10.00PM. 

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