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The migration of broadband customers towards higher-speed services has begun in Australia, says telecoms research and analysis outfit Telsyte.

Its latest publication, The Australian Internet Market: Narrowband and Broadband Services, says services at 1.5 Mbps or greater will dominate the subscriber demographic by 2010.

That contrasts with today’s services, where ISPs are largely promoting 256- or 512Kbps services. Telsyte findings indicate narrowband (dial-up) Internet services have now peaked in Australia and will decline to fewer than 800,000 services by 2010

The researcher says it expects that overall customer growth in Australia will decline towards the end of the decade as the penetration of Internet services aligns with the growth in the number of households. “The residential market will remain the engine-room of broadband growth,” Shara Evans, managing director of Telsyte, says.
“Overall Internet penetration is currently at more than 6.2 million subscribers. In the short term, the huge customer churn from dial-up services to broad-band will mask the relatively flat overall growth in subscriber numbers.”

In future Telsyte believes ISPs will have to focus on improving the profitability of their existing customer base rather than recruiting new customers.

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