NBN market sees smaller telcos gain ground

Smaller telcos have seen a rise in the NBN market and increased competition among their bigger peers as the broadband market evolves, writes Paul Budde.

THE JUNE QUARTER of 2024 has seen smaller telcos making significant strides in the NBN market, according to the latest NBN Wholesale Market Indicators Report released by the Australian Competition and Consumer Commission (ACCC). The report, prepared by NBN Co, provides a detailed overview of the NBN wholesale market, with a particular focus on residential broadband access services.

Key market movements

The trend of challenger telcos such as Aussie Broadband, Superloop and Vocus increasing their market shares continued, although at a very slow pace of around 1%. The three main telcos together still dominate the market with a combined market share of 70.

Challenger Aussie Broadband led the charge, increasing its market share by 0.32 percentage points to capture 8.95% of fixed-line and fixed wireless NBN services. Superloop followed with a 0.22% rise, reaching a 4.01% market share, while Vocus experienced modest growth of 0.03%, bringing its market share to 8.61%.

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AGL-owned Southern Phone and other smaller telcos also made notable gains. Southern Phone increased its market share by 0.17%, ending the quarter with 1.89% of the market.

In contrast, the major players – Telstra, Optus and TPG Telecom – saw declines in their market shares. Telstra’s share dropped by 0.57% to approximately 39.8%, TPG fell by 0.22% to 20.6% and Optus decreased by 0.09% to 12.7%.

Overall NBN market performance

The total number of NBN services in operation reached 8.8 million by the end of June 2024, marking a slight increase of 0.05% from the previous quarter. The total Connectivity Virtual Circuit (CVC) capacity acquired by retail service providers saw a significant boost, rising by 14.5% to 53.9 Tbps. This increase in capacity has also led to a 14.5% rise in the average CVC per user, now at 6.1 Mbps.

The number of NBN services with download speeds of 50 Mbps or higher grew by 0.25%, totaling 6.2 million. However, the market also observed a shift away from the 50 Mbps speed tier, which declined by 187,000 services. Conversely, the 100 Mbps tier increased by 139,000 services and the 250 Mbps+ tiers saw a rise of nearly 64,000 services.

Migration and technology shifts

The ongoing migration from DSL to NBN services continues to shape the market dynamics. The report notes an increase of over 117,000 in Fibre to the Premises (FTTP) services, while Fibre to the Node (FTTN) and Fibre to the Curb (FTTC) services saw a combined decrease of approximately 104,000.

The detailed statistics provided in the report allow for a granular analysis of these shifts, with interactive charts showing data by access seeker group, download data rate, technology type and geographic region over the last nine reporting periods.

In summary, the June quarter of 2024 highlights a continued shift in the NBN market, with smaller telcos gaining ground and increasing competition. The detailed insights provided by the ACCC's report underline the ongoing evolution of the market as it adapts to changing consumer demands and technological advancements.

For those seeking more in-depth data, the full report is available for download in Excel format, offering a comprehensive view of the trends shaping Australia's NBN landscape.

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Paul Budde is an Independent Australia columnist and managing director of Paul Budde Consulting, an independent telecommunications research and consultancy organisation. You can follow Paul on Twitter @PaulBudde.