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Overview Chapter 1 provides an overview of the communications and media market in Australia. This includes what kinds of services are available, how consumers use these services, carrier licensing and number allocation. This chapter also includes a summary of media ownership in Australia and of changing patterns in advertising expenditure. It also discusses how convergence and the emerging digital economy are challenging traditional services and changing consumer preferences. During 2010–11: > the number of fixed-line voice services and call volumes continued to decline, despite industry efforts to address changing consumer preferences through new service offerings and bundling > the use of voice over internet protocol (VoIP) grew, with significant numbers of consumers using VoIP over mobile phone handsets > there was net growth in mobile phone services as well as existing mobile phone users upgrading to smartphones, on the back of greater adoption of mobile internet services > internet services via mobile networks continued to underpin growth in the internet subscriber numbers, while fixed networks dominated internet data downloads > mobile numbers were increasingly used for devices with wireless internet connectivity and for machine-to-machine communication > communication service providers focused more on service bundling and discounting to retain market share at the expense of profit margins > there was significant progress in the development of the National Broadband Network (NBN) > choice in broadcasting content expanded due to developments for IPTV and video on demand, and more subscription television licences and digital television services > advertising expenditure on online media channels increased, as did the number of Australians accessing broadcasting content online. Chapter 1 The Australian communications and media market
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Chapter 1 the Aus Communications and Media Market

Sep 15, 2015

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  • Overview

    Chapter 1 provides an overview of the communications and media market in Australia. This includes what kinds of services are available, how consumers use these services, carrier licensing and number allocation. This chapter also includes a summary of media ownership in Australia and of changing patterns in advertising expenditure. It also discusses how convergence and the emerging digital economy are challenging traditional services and changing consumer preferences.

    During 201011:

    > the number of fixed-line voice services and call volumes continued to decline, despite industry efforts to address changing consumer preferences through new service offerings and bundling

    > the use of voice over internet protocol (VoIP) grew, with significant numbers of consumers using VoIP over mobile phone handsets

    > there was net growth in mobile phone services as well as existing mobile phone users upgrading to smartphones, on the back of greater adoption of mobile internet services

    > internet services via mobile networks continued to underpin growth in the internet subscriber numbers, while fixed networks dominated internet data downloads

    > mobile numbers were increasingly used for devices with wireless internet connectivity and for machine-to-machine communication

    > communication service providers focused more on service bundling and discounting to retain market share at the expense of profit margins

    > there was significant progress in the development of the National Broadband Network (NBN)

    > choice in broadcasting content expanded due to developments for IPTV and video on demand, and more subscription television licences and digital television services

    > advertising expenditure on online media channels increased, as did the number of Australians accessing broadcasting content online.

    Chapter 1The Australian communications and media market

  • ACMA Communications report 201011 | 31

    Table 1.1 Key industry statistics

    Jun-10 Jun-11 % change

    Fixed-line telephone services in operation 10.59 m 10.54 m 0.5%

    People without a home fixed-line telephone service 2.3 m 2.7 m +17%

    Home VoIP users 2.9 m 3.8 m +31%

    Mobile telephone VoIP users 0.084 m 0.274 m +226%

    Household consumers with a mobile telephone 14.9 m 15.8 m +6%

    Mobile data and voice services in operation 25.99 m 29.28 m +13%

    Mobile wireless broadband subscribers* 3.45 m 4.79 m +39%

    Mobile phone handset internet subscribers 6.78 m 9.68 m +43%

    Mobile phone handset services without an internet subscription

    15.76 m 14.81 m 6%

    Total number of internet subscribers 9.5 m 10.9 m +15%

    Total number of broadband internet subscribers 8.7 m 10.3 m +18%

    Volume of SMS and MMS messages sent 29.4 b 36.3 b +23%

    Pay TV subscribers (households) 2.38 m 2.41 m +1%

    Australians with a home internet connection 13.8 m 14.6 m +6%

    Australians with a broadband at home 11.8 m 12.7 m +8%

    Australians going online 13.0 m 13.5 m +4%

    Australians going online at least once a day 8.9 m 10.0 m +12%

    Australians going online via their mobile phone handset 2.4 m 3.9 m +63%

    Pages of web content viewed at home 18.5 b 19.2 b +4%

    Australians streaming radio online 0.7 m 0.9 m +29%

    Australians streaming TV online 0.6 m 1.1 m +83%

    Australians downloading TV programs 0.8 m 1.0 m +25%

    Quarter ending June 2010

    Quarter ending June 2011

    % change

    Average volume of data downloaded per subscriber 16.1 GB 25.1 GB +56%

    Volume of data downloaded

    fixed-line broadband# 141,892 TB 254,947 TB +80%

    wireless broadband# 13,330 TB 19,149 TB +44%

    Total volume of data downloaded from the internet 155,503 TB 274,202 TB +76%

    Jun-10 Jun-11 % change

    Geographic number allocations 1.48 m 1.07 m 28%

    Licensing

    Telecommunications carrier licences 177 191 +8%

    Commercial television broadcasting licences 71 69 3%

    Commercial radio broadcasting licences 273 273 nil

    Subscription television licences 2,700 2,759 +2%

    Community television broadcasting licensees 81 81 nil

    Community radio broadcasting licensees 356 356 nil

  • 32 | Chapter 1 The Australian communications and media market

    m=million. b=billion.TB=terabytes (1,000 GB).GB=gigabytes (one million bytes).*Refers to services offered via a datacard or dongle. Excludes mobile phone handset internet subscribers.Excludes mobile phone handset internet subscribers.Online activities undertaken during month of June, Australians aged 14 years and over.Month of June.Includes mobile phone handset internet subscribers.#Includes satellite, fixed wireless, mobile wireless via a datacard, dongle or USB modem and other wireless broadband. Excludes subscriptions via mobile handsets.Note: Number of services in operation and internet subscribers includes household, business and government sectors.

    Telecommunications industry

    Industry revenuesOver recent years, the strong shift from fixed to mobile telecommunications services has been reflected in the changing share of Australian telecommunications industry revenue (Figure 1.1). During this period, the fixed telecommunications sectors share of total industry revenue has declined from 41 per cent during 200506 to 28 per cent for 201011. In contrast, the mobile telecommunications sector now accounts for the single largest share of the total industry revenue, having increased from 36 per cent during 200506 to 50 per cent during 201011.

    Figure 1.1 Change in the share of Australian telecommunications industry* revenue, 200506 to 201011

    709

    1,009

    1,433

    655

    787

    568

    515

    2,314

    796

    757

    1,347

    560

    625

    355

    455

    724

    625

    1,089

    562

    478

    292

    329

    912

    1,202

    1,580

    786

    974

    1,056

    612

    2,631

    FF ii gg uu rr ee 11 .. 11 CC hh aa nn gg ee ii nn tthh ee ss hh aa rr ee oo ff AA uu ss tt rr aa ll ii aa nn ttee ll ee ccoommmm uu nn ii cc aa tt ii oo nn ss ii nn dd uu ss tt rr yy ** rr ee vv ee nn uu ee ,, 22 00 00 55 00 66 ttoo 22 00 11 00 11 11

    10 9 9 8 7 7

    13 14 15 15 15 15

    36 38 41

    44 47 50

    41 38 36 33

    30 28

    0

    20

    40

    60

    80

    100

    200506 200607 200708 200809 200910 201011

    % share of telecom

    mun

    ication indu

    stry re

    venu

    es

    Fixedtelecommunications

    Mobiletelecommunications

    Internet serviceproviders

    Telecommunicationsresellers

    FF ii gg uu rr ee 11 .. 33 FF ii xx ee dd -- ll ii nn ee tt ee ll ee pp hh oo nn ee ss ee rr vv ii cc ee mm aa rr kk ee tt ss hh aa rr ee ,, AA uu ss tt rr aa ll ii aa

    18% 21%

    82% 79%

    Jun-10 Jun-11

    Telstra

    Optus and other

    FF ii gg uu rr ee 11 .. 44 TT aa kk ee -- uu pp oo ff ss ee ll ee cc tt cc oo mm mm uu nn ii cc aa tt ii oo nn tt ee cc hh nn oo ll oo gg ii ee ss

    Home fixed-line telephone

    No home fixed-line telephone

    Mobile phone

    VoIP at home

    VoIP via mobile

    Home internet

    connection

    Home broadband connection

    Use internet via mobile phone handset

    Voice services Data services

    Jun-08 15.4 1.3 14.3 1.4 0.0 12.4 9.7

    Jun-09 15.3 1.7 14.8 2.2 0.1 13.3 11.1

    Jun-10 15.0 2.3 15.2 2.9 0.1 13.8 11.8

    Jun-11 15.1 2.7 16.1 3.8 0.3 14.6 12.7

    1.3

    1.6

    2.4

    3.9

    0 2 4 6 8

    10 12 14 16 18

    Num

    ber of persons age

    d 14

    years and

    over (m

    illion

    )

    Jun-08 Jun-09 Jun-10 Jun-11

    FF ii gg uu rr ee 11 .. 55 TT yy pp ee ss oo ff ss ee rr vv ii cc ee ss bb uu nn dd ll ee dd

    97

    86

    48

    12

    1

    96

    89

    56

    18

    1 0

    20

    40

    60

    80

    100

    Fixed-linetelephone

    Internet Mobile phone Pay TV VoIP

    % fixed-line teleph

    one users ag

    ed 18 years and over Apr-10 Apr-11

    MM aa rr kk ee tt ss hh aa rr ee oo ff mm oo bb ii ll ee ss ee rr vv ii cc ee ss ii nn oo pp ee rr aa tt ii oo nn ,, JJ uu nn ee 22 00 11 11

    Telstra42%

    Optus31%

    VHA27%

    FF ii gg uu rr ee 11 .. 99 MM oo bb ii ll ee tt ee ll ee pp hh oo nn ee ss aa cc tt ii vv ii tt ii ee ss uu nn dd ee rr tt aa kk ee nn dd uu rr ii nn gg JJ uu nn ee

    0

    2

    2

    2

    3

    3

    9

    10

    10

    10

    12

    15

    21

    22

    23

    23

    23

    25

    39

    49

    75

    81

    83

    88

    1

    2

    2

    3

    2

    3

    8

    10

    10

    5

    9

    12

    15

    18

    20

    22

    24

    20

    36

    46

    75

    82

    84

    88

    0 20 40 60 80 100

    Can't say

    Infra-red functions

    Video messaging

    Haven't used my main mobile phone in the last 4 weeks

    Global roaming

    Made video calls

    Listening to the radio

    Made overseas calls

    Entered a competition or voted using SMS

    GPS (global positional system) functions

    Using as a personal organiser or PDA

    Taking videos

    Did one or more internet activities

    Playing music/MP3s

    Picture messaging/MMS

    Made interstate calls

    Bluetooth functions

    Playing games

    Received voice mail

    Taking photos

    Made local calls

    Sent SMS

    Received SMS

    Made calls to mobiles

    % of people aged 14 years and over

    2010

    2011

    FF ii gg uu rr ee 11 .. 11 00 CC oo nn ss uu mm ee rr tt aa kk ee -- uu pp oo ff mm oo bb ii ll ee pp hh oo nn ee ss ,, bb yy hh aa nn dd ss ee tt tt yy pp ee

    27

    58

    37

    0

    20

    40

    60

    2G handset 3G handset Smartphone

    % m

    obile pho

    ne users who

    use handset type

    FF ii gg uu rr ee 11 .. 11 11 AA cc tt ii vv ii tt ii ee ss uu nn dd ee rr tt aa kk ee nn oo nn ll ii nn ee vv ii aa mm oo bb ii ll ee pp hh oo nn ee hh aa nn dd ss ee tt ss

    13

    33

    72

    74

    74

    8

    19

    42

    49

    46

    0 20 40 60 80 100

    Made VoIP calls

    Played a game online

    Downloaded any apps

    Accessed social networking sites suchas Facebook, Myspace or LinkedIn

    Sent or received email

    % of persons aged 18 years and over who used the internet via their mobile handset

    3G phone (not smartphone)

    Smartphone

    FF ii gg uu rr ee 11 .. 11 22 DD ii ss tt rr ii bb uu tt ii oo nn oo ff ii nn tt ee rr nn ee tt ss uu bb ss cc rr ii bb ee rr ss bb yy aa cc cc ee ss ss tt ee cc hh nn oo ll oo gg yy ,, AA uu ss tt rr aa

    FF ii gg uu rr ee 11 .. 11 44 AA dd dd ii tt ii oo nn aa ll II SS PP ss ee rr vv ii cc ee oo ff ff ee rr ii nn gg ,, AA uu ss tt rr aa ll ii aa

    8

    11

    8

    9

    28

    42

    35

    50

    61

    72

    4

    6

    8

    10

    27

    30

    34

    52

    55

    76

    0 10 20 30 40 50 60 70 80

    IPTV

    No other services offered

    Digital television

    Other services offered

    Web content filtering

    Naked DSL

    Mobile telephone

    Home telephone

    VoIP

    Email content filtering

    % of ISPs

    Jun-10

    Jun-11

    FF ii gg uu rr ee 11 .. 11 55 TT rr ee nn dd ss ii nn cc aa rr rr ii ee rr ll ii cc ee nn ss ii nn gg

    FF ii gg uu rr ee 11 .. 11 66 TT rr ee nn dd ss ii nn nn oo mm ii nn aa tt ee dd cc aa rr rr ii ee rr dd ee cc ll aa rr aa tt ii oo nn ss

    32

    23 20

    14

    40

    35

    25

    17

    22 19 18

    4

    13

    7 9 8 9

    14 13

    20

    16

    4

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    Num

    ber of licences

    Financial year

    Licences granted

    Licences surrendered/cancelled

    7

    5

    11 11

    17

    11

    7

    13

    8

    4 4

    1

    3

    0

    7

    3

    7

    5

    3

    11

    1

    7

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    Num

    ber of licences

    NCDs granted

    NCDs revoked

    FF ii gg uu rr ee 11 .. 11 77 GG ee oo gg rr aa pp hh ii cc nn uu mm bb ee rr aa ll ll oo cc aa tt ii oo nn ss

    1,021,000

    3,235,600

    4,508,600

    3,132,400

    1,478,800

    1,072,800

    -

    500,000

    1,000,000

    1,500,000

    2,000,000

    2,500,000

    3,000,000

    3,500,000

    4,000,000

    4,500,000

    5,000,000

    200506 200607 200708 200809 200910 201011

    Num

    bers allocated

    Financial year

    FF ii gg uu rr ee 11 .. 11 99 NN uumm bbee rr oo ff bb rr oo aa ddccaa ss tt ii nn gg ll ii cc ee nn ccee ss ii nn oo ppee rr aa tt ii oo nn ii nn AA uu ss tt rr aa ll ii aa

    273

    71

    2,700

    356

    81 100 273

    69

    2,759

    356

    81 106

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    Commercial radio Commercialtelevision

    Subscriptiontelevision

    Community radio Community television

    Temporary community radio

    Num

    ber of licences

    Licence type

    Jun-10 Jul-11

    FF ii gg uu rr ee 11 .. 22 00 DD ii ss tt rr ii bb uu tt ii oo nn oo ff aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee aa cc rr oo ss ss mm aa ii nn mm ee dd ii aa ,, 22 00 00 11 22 00 11 00 (( cc aa ll ee nn dd aa rr yy ee aa rr ss ))

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

    Cinema 64.4 57.9 65.8 74.1 83.6 85.5 93.0 96.0 88.7 99.4

    Outdoor 271.1 261.0 296.6 327.1 353.8 378.7 436.5 453.9 399.9 477.3

    Online 0.0 167.0 236.0 388.0 620.0 1,001.0 1,346.0 1,710.3 1,871.3 2264.5

    Radio 695.0 702.4 737.0 841.6 897.5 924.8 984.4 992.0 936.2 1001.3

    Television 2,490.2 2,659.4 2,923.8 3,265.5 3,376.1 3,419.7 3,750.2 3,729.0 3,484.3 3888.8

    Print media 4,871.3 4,995.3 5,400.4 5,866.3 6,226.0 6,023.5 6,582.0 6,695.7 5,799.4 5778.3

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    $('000)

    PP rr oo pp oo rr tt ii oo nn oo ff 22 00 11 00 aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee bb rr ee aa kk dd oo ww nn bb yy mm aa ii nn mm ee dd ii aa cc aa tt ee gg oo rr yy

    Print media43%

    Television29%

    Radio7%

    Online17%

    Outdoor4%

    Cinema1%

    FF ii gg uu rr ee 11 .. 22 22 OO nn ll ii nn ee aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee ,, 22 00 00 88 tt oo 22 00 11 00

    464,500 498,000

    605,250

    439,250 429,000

    531,000

    806,500

    944,250

    1,128,250

    0

    200,000

    400,000

    600,000

    800,000

    1,000,000

    1,200,000

    2008 2009 2010

    $ ('000)

    Calendar year

    Online general Classifieds Search and directories

    6,172 7,195

    8,094 8,895

    10,033

    44% 48% 52%

    56% 60%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    Jun-07 Jun-08 Jun-09 Jun-10 Jun-11

    % of o

    nline po

    pulation

    Num

    ber of persons age

    d 14

    years and

    over ('0

    00s)

    More than once a day

    Proportion of online population

    FF ii gg uu rr ee 11 .. 22 44 AA vv ee rr aa gg ee tt ii mm ee ss pp ee nn tt vv ii ee ww ii nn gg tt ee ll ee vv ii ss ii oo nn ii nn FF TT AA -- oo nn ll yy aa nn dd SS TT VV hh oo uu ss ee hh oo ll dd ss ,, 22

    119

    76

    158

    90

    117

    163

    210

    0

    50

    100

    150

    200

    250

    FTA TV-only households Subscription TV households

    Minutes per day

    Total commercial Total FTA Total subscription TV Total TV

    0

    60

    120

    180

    240

    300

    360

    04 512 1317 1824 2539 4054 5564 65+

    Minutes per day

    Age group

    FTA TV-only 2008

    FTA TV-only 2010

    Subscription TV 2008

    Subscription TV 2010

    FTA TV only households

    Subscription TV households

    60

    67 72

    37 35 41

    115

    107

    88

    58

    42 45

    112

    97

    76

    0

    60

    120

    04 512 1317 04 512 1317

    FTA TV-only Subscription TV

    Minutes per day

    Age group

    Total commercial Total FTA Total subscription TV

    115

    144

    183

    75

    93

    130 140

    180

    260

    85 106

    164

    115

    132

    164

    0

    60

    120

    180

    240

    300

    2539 4054 65+ 2539 4054 65+

    FTA TV-only Subscription TV

    Minutes per day

    Age group

    Total commercial Total FTA Total subscription TV

    0 500 1,000 1,500 2,000 2,500 3,000

    Streamed radio

    Streamed music

    Downloaded video clips

    Downloaded audio/video podcasts

    Downloaded TV programs

    Streamed TV (e.g. ABC iView)

    Downloaded feature-length movie

    Streamed video (e.g. YouTube)*

    Number of persons aged 14 years and over ('000s)

    Jun-11

    Jun-10

    Jun-09

    Jun-08

    FF ii gg uu rr ee 11 .. 22 CC oomm pp oo ss ii tt ii oo nn oo ff TT ee ll ss tt rr aa ss pp rr oo dd uu cc tt rr ee vv ee nn uu ee ,, bb yy ff ii nn aa nn cc ii aa ll yy ee aa rr

    29

    24

    9 11

    6 7

    14

    33

    21

    9 9 8

    7

    13

    0

    5

    10

    15

    20

    25

    30

    35

    Mobile services

    Public switched telephone

    network (PSTN)

    Sensis* Other fixed Fixed-line broadband

    IP and data Other

    % of p

    rodu

    ct re

    venu

    e

    200910 201011

    200506 200304 200405 200203 200102 200001 200607 200708 200809 200910 201011

    Financial year

    200506 200304 200405 200203 200102 200001 200607 200708 200809 200910 201011

    ADSL22%

    Mobile wireless*23%

    Mobile phonehandset47%

    Other5%

    Dial-up3%

    FF ii gg uu rr ee 11 .. 11 33 VV oo ll uu mm ee oo ff dd aa tt aa dd oo ww nn ll oo aa dd ee dd bb yy AA uu ss tt rr aa ll ii aa nn ii nn tt ee rr nn ee tt uu ss ee rr ss

    Dec-09 Jun-10 Dec-10 Jun-11

    Dial-up 294 280 183 106

    Wireless broadband 14,251 13,330 16,990 19,149

    Fixed-line broadband 113,410 141,892 174,665 254,947

    0

    50,000

    100,000

    150,000

    200,000

    250,000

    300,000

    Terabytes

    Fixed-line broadband

    Wireless broadband

    Dial-up

    127,954

    155,503

    191,839

    274,202

    FFrreeee tt oo--aaiirr bbrrooaaddccaasstt iinngg iinndduusstt rryy rreevveennuueess,, AAuusstt rraalliiaa,, 220000660077 tt oo 220011001111 (( CCoonnsstt aanntt PPrriicceess))

    5.77 5.22 5.09

    4.47 4.60 4.60

    1.33 1.34 1.36 1.29 1.29 1.35

    0.00

    0.20

    0.40

    0.60

    0.80

    1.00

    1.20

    1.40

    1.60

    0.00

    1.00

    2.00

    3.00

    4.00

    5.00

    6.00

    7.00

    200506 200607 200708 200809 200910 201011

    Rad

    io re

    venu

    e

    Television

    s revenu

    e

    Free-to-air television Radio services $ billion $ billion

    *Figures shown for Telecommunications industry do not include some minor products and services such as satellite TV and radio relay.Source: IBISWorld telecommunications industry reports, May 2011.

  • ACMA Communications report 201011 | 33

    Communication service availability

    Fixed-line voice service availabilityAt June 2011, there were 287 fixed-line telephone service providers operating in Australia. Of these, 179 offered services over the public switched telecommunications network (PSTN) and 176 operated in the VoIP market. This includes service providers and resellers.1

    Fixed-line services in operationThe number of fixed-line services in operation in Australia continued to decline in the 12 months to June 2011. There were approximately 10.54 million fixed-line telephone services in operation in Australia at June 2011, compared with 10.59 million at June 2010 and 10.67 million at June 2009 (Table 1.2). The decrease in fixed-line telephone services during 201011 was approximately 0.5 per cent overall, compared to the 0.7 per cent decline recorded during the 200910 reporting period.

    Telstra reported a continuation of the decline in its fixed-line residential telephone service market segment during 201011 (Table 1.2), with the number of home (retail) PSTN services declining by nearly seven per cent. The number of Telstra wholesale fixed-line services also declined in 201011, falling by three per cent, but business (retail) services increased by five per cent. Overall, the number of Telstra fixed-line services fell by three per cent for the year, compared to four per cent the year before.

    The continued decline in this segment of the voice service market is demonstrated further by Telstras PSTN revenue, which fell by four per cent, or $480 million, in the 12 months to June 2011.2 The decline in PSTN revenue also reflects decreases in call volumes, with a 14 per cent fall in the number of local calls and a nine per cent fall in national long-distance minutes over this period.3

    A comparison of Telstras sources of product revenue over the last two financial years is provided in Figure 1.2. Consistent with general market trends in Australia, Telstras revenue from mobile networks continued to increase, now accounting for a third of its total product revenue. As is evident for all mobile carriers in Australia, the growth in mobile service revenues was underpinned by the adoption of mobile wireless broadband and an increase in mobile voice minutes and texting (SMS and MMS).

    Telstra reports in its 201011 financial results that mobile voice minutes increased by just over 17 per cent and the number of SMS sent by five per cent in the 12 months to June 2011. During the same period, Telstras mobile wireless broadband subscriber base increased by 55 per cent to reach 2.6 million services in operation at June 2011. Growth in mobile service numbers and activity volumes has been a result of heavy discounting to expand market share, with average revenue per user (ARPU) declining for key mobile customers segments. For example, ARPU for Telstras mobile broadband customers decreased by 24 per cent in the 12 months to June 2011, from $50.41 at June 2010 to $38.30 at June 2011.4

    While most traditional fixed-line revenues, such as those from the PSTN, have recorded either little or no growth, the exception has been Telstras revenue from fixed-line broadband services, which has grown as a proportion of total revenue by two percentage points to eight per cent.

  • Table 1.2 Number of fixed-line telephone services in operation

    All carriage service providers

    Jun-08 Jun-09 Jun-10 Jun-11 % change from Jun-10 to Jun-11

    Retail (own network) 9.40 m 9.17 m 9.12 m 9.15 m +0.3%

    Wholesale 1.60 m 1.50 m 1.47 m 1.39 m 5.4%

    Total 11.00 m 10.67 m 10.59 m 10.54 m 0.5%

    Telstra services only

    Jun-08 Jun-09 Jun-10 Jun-11 % change from Jun-10 to Jun-11

    Residential (retail) 5.56 m 5.46 m 5.20 m 4.84 m 6.9%

    Business (retail) 2.31 m 2.27 m 2.21 m 2.32 m +5.0%

    Wholesale 1.50 m 1.29 m 1.25 m 1.21 m 3.2%

    Total 9.36 m 9.02 m 8.66 m 8.37 m 3.3%

    m=million.Source: The ACMA annual industry data request.

    Figure 1.2 Composition of Telstras product revenue, by financial year

    709

    1,009

    1,433

    655

    787

    568

    515

    2,314

    796

    757

    1,347

    560

    625

    355

    455

    724

    625

    1,089

    562

    478

    292

    329

    912

    1,202

    1,580

    786

    974

    1,056

    612

    2,631

    FF ii gg uu rr ee 11 .. 11 CC hh aa nn gg ee ii nn tthh ee ss hh aa rr ee oo ff AA uu ss tt rr aa ll ii aa nn ttee ll ee ccoommmm uu nn ii cc aa tt ii oo nn ss ii nn dd uu ss tt rr yy ** rr ee vv ee nn uu ee ,, 22 00 00 55 00 66 ttoo 22 00 11 00 11 11

    10 9 9 8 7 7

    13 14 15 15 15 15

    36 38 41

    44 47 50

    41 38 36 33

    30 28

    0

    20

    40

    60

    80

    100

    200506 200607 200708 200809 200910 201011

    % share of telecom

    mun

    ication indu

    stry re

    venu

    es

    Fixedtelecommunications

    Mobiletelecommunications

    Internet serviceproviders

    Telecommunicationsresellers

    FF ii gg uu rr ee 11 .. 33 FF ii xx ee dd -- ll ii nn ee tt ee ll ee pp hh oo nn ee ss ee rr vv ii cc ee mm aa rr kk ee tt ss hh aa rr ee ,, AA uu ss tt rr aa ll ii aa

    18% 21%

    82% 79%

    Jun-10 Jun-11

    Telstra

    Optus and other

    FF ii gg uu rr ee 11 .. 44 TT aa kk ee -- uu pp oo ff ss ee ll ee cc tt cc oo mm mm uu nn ii cc aa tt ii oo nn tt ee cc hh nn oo ll oo gg ii ee ss

    Home fixed-line telephone

    No home fixed-line telephone

    Mobile phone

    VoIP at home

    VoIP via mobile

    Home internet

    connection

    Home broadband connection

    Use internet via mobile phone handset

    Voice services Data services

    Jun-08 15.4 1.3 14.3 1.4 0.0 12.4 9.7

    Jun-09 15.3 1.7 14.8 2.2 0.1 13.3 11.1

    Jun-10 15.0 2.3 15.2 2.9 0.1 13.8 11.8

    Jun-11 15.1 2.7 16.1 3.8 0.3 14.6 12.7

    1.3

    1.6

    2.4

    3.9

    0 2 4 6 8

    10 12 14 16 18

    Num

    ber of persons age

    d 14

    years and

    over (m

    illion

    )

    Jun-08 Jun-09 Jun-10 Jun-11

    FF ii gg uu rr ee 11 .. 55 TT yy pp ee ss oo ff ss ee rr vv ii cc ee ss bb uu nn dd ll ee dd

    97

    86

    48

    12

    1

    96

    89

    56

    18

    1 0

    20

    40

    60

    80

    100

    Fixed-linetelephone

    Internet Mobile phone Pay TV VoIP

    % fixed-line teleph

    one users ag

    ed 18 years and over Apr-10 Apr-11

    MM aa rr kk ee tt ss hh aa rr ee oo ff mm oo bb ii ll ee ss ee rr vv ii cc ee ss ii nn oo pp ee rr aa tt ii oo nn ,, JJ uu nn ee 22 00 11 11

    Telstra42%

    Optus31%

    VHA27%

    FF ii gg uu rr ee 11 .. 99 MM oo bb ii ll ee tt ee ll ee pp hh oo nn ee ss aa cc tt ii vv ii tt ii ee ss uu nn dd ee rr tt aa kk ee nn dd uu rr ii nn gg JJ uu nn ee

    0

    2

    2

    2

    3

    3

    9

    10

    10

    10

    12

    15

    21

    22

    23

    23

    23

    25

    39

    49

    75

    81

    83

    88

    1

    2

    2

    3

    2

    3

    8

    10

    10

    5

    9

    12

    15

    18

    20

    22

    24

    20

    36

    46

    75

    82

    84

    88

    0 20 40 60 80 100

    Can't say

    Infra-red functions

    Video messaging

    Haven't used my main mobile phone in the last 4 weeks

    Global roaming

    Made video calls

    Listening to the radio

    Made overseas calls

    Entered a competition or voted using SMS

    GPS (global positional system) functions

    Using as a personal organiser or PDA

    Taking videos

    Did one or more internet activities

    Playing music/MP3s

    Picture messaging/MMS

    Made interstate calls

    Bluetooth functions

    Playing games

    Received voice mail

    Taking photos

    Made local calls

    Sent SMS

    Received SMS

    Made calls to mobiles

    % of people aged 14 years and over

    2010

    2011

    FF ii gg uu rr ee 11 .. 11 00 CC oo nn ss uu mm ee rr tt aa kk ee -- uu pp oo ff mm oo bb ii ll ee pp hh oo nn ee ss ,, bb yy hh aa nn dd ss ee tt tt yy pp ee

    27

    58

    37

    0

    20

    40

    60

    2G handset 3G handset Smartphone

    % m

    obile pho

    ne users who

    use handset type

    FF ii gg uu rr ee 11 .. 11 11 AA cc tt ii vv ii tt ii ee ss uu nn dd ee rr tt aa kk ee nn oo nn ll ii nn ee vv ii aa mm oo bb ii ll ee pp hh oo nn ee hh aa nn dd ss ee tt ss

    13

    33

    72

    74

    74

    8

    19

    42

    49

    46

    0 20 40 60 80 100

    Made VoIP calls

    Played a game online

    Downloaded any apps

    Accessed social networking sites suchas Facebook, Myspace or LinkedIn

    Sent or received email

    % of persons aged 18 years and over who used the internet via their mobile handset

    3G phone (not smartphone)

    Smartphone

    FF ii gg uu rr ee 11 .. 11 22 DD ii ss tt rr ii bb uu tt ii oo nn oo ff ii nn tt ee rr nn ee tt ss uu bb ss cc rr ii bb ee rr ss bb yy aa cc cc ee ss ss tt ee cc hh nn oo ll oo gg yy ,, AA uu ss tt rr aa

    FF ii gg uu rr ee 11 .. 11 44 AA dd dd ii tt ii oo nn aa ll II SS PP ss ee rr vv ii cc ee oo ff ff ee rr ii nn gg ,, AA uu ss tt rr aa ll ii aa

    8

    11

    8

    9

    28

    42

    35

    50

    61

    72

    4

    6

    8

    10

    27

    30

    34

    52

    55

    76

    0 10 20 30 40 50 60 70 80

    IPTV

    No other services offered

    Digital television

    Other services offered

    Web content filtering

    Naked DSL

    Mobile telephone

    Home telephone

    VoIP

    Email content filtering

    % of ISPs

    Jun-10

    Jun-11

    FF ii gg uu rr ee 11 .. 11 55 TT rr ee nn dd ss ii nn cc aa rr rr ii ee rr ll ii cc ee nn ss ii nn gg

    FF ii gg uu rr ee 11 .. 11 66 TT rr ee nn dd ss ii nn nn oo mm ii nn aa tt ee dd cc aa rr rr ii ee rr dd ee cc ll aa rr aa tt ii oo nn ss

    32

    23 20

    14

    40

    35

    25

    17

    22 19 18

    4

    13

    7 9 8 9

    14 13

    20

    16

    4

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    Num

    ber of licences

    Financial year

    Licences granted

    Licences surrendered/cancelled

    7

    5

    11 11

    17

    11

    7

    13

    8

    4 4

    1

    3

    0

    7

    3

    7

    5

    3

    11

    1

    7

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    Num

    ber of licences

    NCDs granted

    NCDs revoked

    FF ii gg uu rr ee 11 .. 11 77 GG ee oo gg rr aa pp hh ii cc nn uu mm bb ee rr aa ll ll oo cc aa tt ii oo nn ss

    1,021,000

    3,235,600

    4,508,600

    3,132,400

    1,478,800

    1,072,800

    -

    500,000

    1,000,000

    1,500,000

    2,000,000

    2,500,000

    3,000,000

    3,500,000

    4,000,000

    4,500,000

    5,000,000

    200506 200607 200708 200809 200910 201011

    Num

    bers allocated

    Financial year

    FF ii gg uu rr ee 11 .. 11 99 NN uumm bbee rr oo ff bb rr oo aa ddccaa ss tt ii nn gg ll ii cc ee nn ccee ss ii nn oo ppee rr aa tt ii oo nn ii nn AA uu ss tt rr aa ll ii aa

    273

    71

    2,700

    356

    81 100 273

    69

    2,759

    356

    81 106

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    Commercial radio Commercialtelevision

    Subscriptiontelevision

    Community radio Community television

    Temporary community radio

    Num

    ber of licences

    Licence type

    Jun-10 Jul-11

    FF ii gg uu rr ee 11 .. 22 00 DD ii ss tt rr ii bb uu tt ii oo nn oo ff aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee aa cc rr oo ss ss mm aa ii nn mm ee dd ii aa ,, 22 00 00 11 22 00 11 00 (( cc aa ll ee nn dd aa rr yy ee aa rr ss ))

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

    Cinema 64.4 57.9 65.8 74.1 83.6 85.5 93.0 96.0 88.7 99.4

    Outdoor 271.1 261.0 296.6 327.1 353.8 378.7 436.5 453.9 399.9 477.3

    Online 0.0 167.0 236.0 388.0 620.0 1,001.0 1,346.0 1,710.3 1,871.3 2264.5

    Radio 695.0 702.4 737.0 841.6 897.5 924.8 984.4 992.0 936.2 1001.3

    Television 2,490.2 2,659.4 2,923.8 3,265.5 3,376.1 3,419.7 3,750.2 3,729.0 3,484.3 3888.8

    Print media 4,871.3 4,995.3 5,400.4 5,866.3 6,226.0 6,023.5 6,582.0 6,695.7 5,799.4 5778.3

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    $('000)

    PP rr oo pp oo rr tt ii oo nn oo ff 22 00 11 00 aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee bb rr ee aa kk dd oo ww nn bb yy mm aa ii nn mm ee dd ii aa cc aa tt ee gg oo rr yy

    Print media43%

    Television29%

    Radio7%

    Online17%

    Outdoor4%

    Cinema1%

    FF ii gg uu rr ee 11 .. 22 22 OO nn ll ii nn ee aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee ,, 22 00 00 88 tt oo 22 00 11 00

    464,500 498,000

    605,250

    439,250 429,000

    531,000

    806,500

    944,250

    1,128,250

    0

    200,000

    400,000

    600,000

    800,000

    1,000,000

    1,200,000

    2008 2009 2010

    $ ('000)

    Calendar year

    Online general Classifieds Search and directories

    6,172 7,195

    8,094 8,895

    10,033

    44% 48% 52%

    56% 60%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    Jun-07 Jun-08 Jun-09 Jun-10 Jun-11

    % of o

    nline po

    pulation

    Num

    ber of persons age

    d 14

    years and

    over ('0

    00s)

    More than once a day

    Proportion of online population

    FF ii gg uu rr ee 11 .. 22 44 AA vv ee rr aa gg ee tt ii mm ee ss pp ee nn tt vv ii ee ww ii nn gg tt ee ll ee vv ii ss ii oo nn ii nn FF TT AA -- oo nn ll yy aa nn dd SS TT VV hh oo uu ss ee hh oo ll dd ss ,, 22

    119

    76

    158

    90

    117

    163

    210

    0

    50

    100

    150

    200

    250

    FTA TV-only households Subscription TV households

    Minutes per day

    Total commercial Total FTA Total subscription TV Total TV

    0

    60

    120

    180

    240

    300

    360

    04 512 1317 1824 2539 4054 5564 65+

    Minutes per day

    Age group

    FTA TV-only 2008

    FTA TV-only 2010

    Subscription TV 2008

    Subscription TV 2010

    FTA TV only households

    Subscription TV households

    60

    67 72

    37 35 41

    115

    107

    88

    58

    42 45

    112

    97

    76

    0

    60

    120

    04 512 1317 04 512 1317

    FTA TV-only Subscription TV

    Minutes per day

    Age group

    Total commercial Total FTA Total subscription TV

    115

    144

    183

    75

    93

    130 140

    180

    260

    85 106

    164

    115

    132

    164

    0

    60

    120

    180

    240

    300

    2539 4054 65+ 2539 4054 65+

    FTA TV-only Subscription TV

    Minutes per day

    Age group

    Total commercial Total FTA Total subscription TV

    0 500 1,000 1,500 2,000 2,500 3,000

    Streamed radio

    Streamed music

    Downloaded video clips

    Downloaded audio/video podcasts

    Downloaded TV programs

    Streamed TV (e.g. ABC iView)

    Downloaded feature-length movie

    Streamed video (e.g. YouTube)*

    Number of persons aged 14 years and over ('000s)

    Jun-11

    Jun-10

    Jun-09

    Jun-08

    FF ii gg uu rr ee 11 .. 22 CC oomm pp oo ss ii tt ii oo nn oo ff TT ee ll ss tt rr aa ss pp rr oo dd uu cc tt rr ee vv ee nn uu ee ,, bb yy ff ii nn aa nn cc ii aa ll yy ee aa rr

    29

    24

    9 11

    6 7

    14

    33

    21

    9 9 8

    7

    13

    0

    5

    10

    15

    20

    25

    30

    35

    Mobile services

    Public switched telephone

    network (PSTN)

    Sensis* Other fixed Fixed-line broadband

    IP and data Other

    % of p

    rodu

    ct re

    venu

    e

    200910 201011

    200506 200304 200405 200203 200102 200001 200607 200708 200809 200910 201011

    Financial year

    200506 200304 200405 200203 200102 200001 200607 200708 200809 200910 201011

    ADSL22%

    Mobile wireless*23%

    Mobile phonehandset47%

    Other5%

    Dial-up3%

    FF ii gg uu rr ee 11 .. 11 33 VV oo ll uu mm ee oo ff dd aa tt aa dd oo ww nn ll oo aa dd ee dd bb yy AA uu ss tt rr aa ll ii aa nn ii nn tt ee rr nn ee tt uu ss ee rr ss

    Dec-09 Jun-10 Dec-10 Jun-11

    Dial-up 294 280 183 106

    Wireless broadband 14,251 13,330 16,990 19,149

    Fixed-line broadband 113,410 141,892 174,665 254,947

    0

    50,000

    100,000

    150,000

    200,000

    250,000

    300,000

    Terabytes

    Fixed-line broadband

    Wireless broadband

    Dial-up

    127,954

    155,503

    191,839

    274,202

    FFrreeee tt oo--aaiirr bbrrooaaddccaasstt iinngg iinndduusstt rryy rreevveennuueess,, AAuusstt rraalliiaa,, 220000660077 tt oo 220011001111 (( CCoonnsstt aanntt PPrriicceess))

    5.77 5.22 5.09

    4.47 4.60 4.60

    1.33 1.34 1.36 1.29 1.29 1.35

    0.00

    0.20

    0.40

    0.60

    0.80

    1.00

    1.20

    1.40

    1.60

    0.00

    1.00

    2.00

    3.00

    4.00

    5.00

    6.00

    7.00

    200506 200607 200708 200809 200910 201011

    Rad

    io re

    venu

    e

    Television

    s revenu

    e

    Free-to-air television Radio services $ billion $ billion

    *Expressed as media in Telstra 201011 financial results.Sources: Telstra, Full Year 200910 Financial ResultsCEO/CFO analyst briefing presentation, August 2010; Telstra, Full Year 201011 Financial ResultsCEO/CFO analyst briefing presentation, August 2011.

    Optus has also witnessed growth in its mobile services revenue, with earnings increasing by five per cent in the 12 months to June 2011. However, in a highly competitive market5, this rate of increase has slowed because of industry competition, with Optus also implementing service discounting.6 During the June quarter of 2011, revenue from mobile services accounted for approximately 65 per cent of total Optus revenue, compared to 63 per cent during the June quarter of 2010. Reflecting the increasing focus on data and content services within the mobile communications sector, mobile data revenues accounted for 45 per cent of Optuss total mobile services revenue during the June quarter 2011, up from 40 per cent from the June quarter of 2010. However, Optuss monthly ARPU for its mobile service customers declined by four per cent in the June quarter of 2011 in comparison to the June quarter of 2010.7

    34 | Chapter 1 The Australian communications and media market

  • ACMA Communications report 201011 | 35

    For Vodafone Hutchison Australia (VHA), network and customer service issues in late 2010 may have been a driver of a decrease in revenue of 3.5 per cent year-on-year to $1,137.6 million at June 2011. Over the last 12 months, VHA also experienced a slight decline in ARPU. VHA attributes the ARPU decline to pressure from competitive pricing and increased credits during early 2011.8

    Figure 1.3 provides an overview of the market share of the fixed-line telephone service providers in Australia at June 2011. On the basis of reported figures, Telstras share of the number of fixed-line telephone services in operation declined from 82 per cent at June 2010 to 79 per cent.

    Figure 1.3 Fixed-line telephone service market share, Australia

    709

    1,009

    1,433

    655

    787

    568

    515

    2,314

    796

    757

    1,347

    560

    625

    355

    455

    724

    625

    1,089

    562

    478

    292

    329

    912

    1,202

    1,580

    786

    974

    1,056

    612

    2,631

    FF ii gg uu rr ee 11 .. 11 CC hh aa nn gg ee ii nn tthh ee ss hh aa rr ee oo ff AA uu ss tt rr aa ll ii aa nn ttee ll ee ccoommmm uu nn ii cc aa tt ii oo nn ss ii nn dd uu ss tt rr yy ** rr ee vv ee nn uu ee ,, 22 00 00 55 00 66 ttoo 22 00 11 00 11 11

    10 9 9 8 7 7

    13 14 15 15 15 15

    36 38 41

    44 47 50

    41 38 36 33

    30 28

    0

    20

    40

    60

    80

    100

    200506 200607 200708 200809 200910 201011

    % share of telecom

    mun

    ication indu

    stry re

    venu

    es

    Fixedtelecommunications

    Mobiletelecommunications

    Internet serviceproviders

    Telecommunicationsresellers

    FF ii gg uu rr ee 11 .. 33 FF ii xx ee dd -- ll ii nn ee tt ee ll ee pp hh oo nn ee ss ee rr vv ii cc ee mm aa rr kk ee tt ss hh aa rr ee ,, AA uu ss tt rr aa ll ii aa

    18% 21%

    82% 79%

    Jun-10 Jun-11

    Telstra

    Optus and other

    FF ii gg uu rr ee 11 .. 44 TT aa kk ee -- uu pp oo ff ss ee ll ee cc tt cc oo mm mm uu nn ii cc aa tt ii oo nn tt ee cc hh nn oo ll oo gg ii ee ss

    Home fixed-line telephone

    No home fixed-line telephone

    Mobile phone

    VoIP at home

    VoIP via mobile

    Home internet

    connection

    Home broadband connection

    Use internet via mobile phone handset

    Voice services Data services

    Jun-08 15.4 1.3 14.3 1.4 0.0 12.4 9.7

    Jun-09 15.3 1.7 14.8 2.2 0.1 13.3 11.1

    Jun-10 15.0 2.3 15.2 2.9 0.1 13.8 11.8

    Jun-11 15.1 2.7 16.1 3.8 0.3 14.6 12.7

    1.3

    1.6

    2.4

    3.9

    0 2 4 6 8

    10 12 14 16 18

    Num

    ber of persons age

    d 14

    years and

    over (m

    illion

    )

    Jun-08 Jun-09 Jun-10 Jun-11

    FF ii gg uu rr ee 11 .. 55 TT yy pp ee ss oo ff ss ee rr vv ii cc ee ss bb uu nn dd ll ee dd

    97

    86

    48

    12

    1

    96

    89

    56

    18

    1 0

    20

    40

    60

    80

    100

    Fixed-linetelephone

    Internet Mobile phone Pay TV VoIP

    % fixed-line teleph

    one users ag

    ed 18 years and over Apr-10 Apr-11

    MM aa rr kk ee tt ss hh aa rr ee oo ff mm oo bb ii ll ee ss ee rr vv ii cc ee ss ii nn oo pp ee rr aa tt ii oo nn ,, JJ uu nn ee 22 00 11 11

    Telstra42%

    Optus31%

    VHA27%

    FF ii gg uu rr ee 11 .. 99 MM oo bb ii ll ee tt ee ll ee pp hh oo nn ee ss aa cc tt ii vv ii tt ii ee ss uu nn dd ee rr tt aa kk ee nn dd uu rr ii nn gg JJ uu nn ee

    0

    2

    2

    2

    3

    3

    9

    10

    10

    10

    12

    15

    21

    22

    23

    23

    23

    25

    39

    49

    75

    81

    83

    88

    1

    2

    2

    3

    2

    3

    8

    10

    10

    5

    9

    12

    15

    18

    20

    22

    24

    20

    36

    46

    75

    82

    84

    88

    0 20 40 60 80 100

    Can't say

    Infra-red functions

    Video messaging

    Haven't used my main mobile phone in the last 4 weeks

    Global roaming

    Made video calls

    Listening to the radio

    Made overseas calls

    Entered a competition or voted using SMS

    GPS (global positional system) functions

    Using as a personal organiser or PDA

    Taking videos

    Did one or more internet activities

    Playing music/MP3s

    Picture messaging/MMS

    Made interstate calls

    Bluetooth functions

    Playing games

    Received voice mail

    Taking photos

    Made local calls

    Sent SMS

    Received SMS

    Made calls to mobiles

    % of people aged 14 years and over

    2010

    2011

    FF ii gg uu rr ee 11 .. 11 00 CC oo nn ss uu mm ee rr tt aa kk ee -- uu pp oo ff mm oo bb ii ll ee pp hh oo nn ee ss ,, bb yy hh aa nn dd ss ee tt tt yy pp ee

    27

    58

    37

    0

    20

    40

    60

    2G handset 3G handset Smartphone

    % m

    obile pho

    ne users who

    use handset type

    FF ii gg uu rr ee 11 .. 11 11 AA cc tt ii vv ii tt ii ee ss uu nn dd ee rr tt aa kk ee nn oo nn ll ii nn ee vv ii aa mm oo bb ii ll ee pp hh oo nn ee hh aa nn dd ss ee tt ss

    13

    33

    72

    74

    74

    8

    19

    42

    49

    46

    0 20 40 60 80 100

    Made VoIP calls

    Played a game online

    Downloaded any apps

    Accessed social networking sites suchas Facebook, Myspace or LinkedIn

    Sent or received email

    % of persons aged 18 years and over who used the internet via their mobile handset

    3G phone (not smartphone)

    Smartphone

    FF ii gg uu rr ee 11 .. 11 22 DD ii ss tt rr ii bb uu tt ii oo nn oo ff ii nn tt ee rr nn ee tt ss uu bb ss cc rr ii bb ee rr ss bb yy aa cc cc ee ss ss tt ee cc hh nn oo ll oo gg yy ,, AA uu ss tt rr aa

    FF ii gg uu rr ee 11 .. 11 44 AA dd dd ii tt ii oo nn aa ll II SS PP ss ee rr vv ii cc ee oo ff ff ee rr ii nn gg ,, AA uu ss tt rr aa ll ii aa

    8

    11

    8

    9

    28

    42

    35

    50

    61

    72

    4

    6

    8

    10

    27

    30

    34

    52

    55

    76

    0 10 20 30 40 50 60 70 80

    IPTV

    No other services offered

    Digital television

    Other services offered

    Web content filtering

    Naked DSL

    Mobile telephone

    Home telephone

    VoIP

    Email content filtering

    % of ISPs

    Jun-10

    Jun-11

    FF ii gg uu rr ee 11 .. 11 55 TT rr ee nn dd ss ii nn cc aa rr rr ii ee rr ll ii cc ee nn ss ii nn gg

    FF ii gg uu rr ee 11 .. 11 66 TT rr ee nn dd ss ii nn nn oo mm ii nn aa tt ee dd cc aa rr rr ii ee rr dd ee cc ll aa rr aa tt ii oo nn ss

    32

    23 20

    14

    40

    35

    25

    17

    22 19 18

    4

    13

    7 9 8 9

    14 13

    20

    16

    4

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    Num

    ber of licences

    Financial year

    Licences granted

    Licences surrendered/cancelled

    7

    5

    11 11

    17

    11

    7

    13

    8

    4 4

    1

    3

    0

    7

    3

    7

    5

    3

    11

    1

    7

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    Num

    ber of licences

    NCDs granted

    NCDs revoked

    FF ii gg uu rr ee 11 .. 11 77 GG ee oo gg rr aa pp hh ii cc nn uu mm bb ee rr aa ll ll oo cc aa tt ii oo nn ss

    1,021,000

    3,235,600

    4,508,600

    3,132,400

    1,478,800

    1,072,800

    -

    500,000

    1,000,000

    1,500,000

    2,000,000

    2,500,000

    3,000,000

    3,500,000

    4,000,000

    4,500,000

    5,000,000

    200506 200607 200708 200809 200910 201011

    Num

    bers allocated

    Financial year

    FF ii gg uu rr ee 11 .. 11 99 NN uumm bbee rr oo ff bb rr oo aa ddccaa ss tt ii nn gg ll ii cc ee nn ccee ss ii nn oo ppee rr aa tt ii oo nn ii nn AA uu ss tt rr aa ll ii aa

    273

    71

    2,700

    356

    81 100 273

    69

    2,759

    356

    81 106

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    Commercial radio Commercialtelevision

    Subscriptiontelevision

    Community radio Community television

    Temporary community radio

    Num

    ber of licences

    Licence type

    Jun-10 Jul-11

    FF ii gg uu rr ee 11 .. 22 00 DD ii ss tt rr ii bb uu tt ii oo nn oo ff aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee aa cc rr oo ss ss mm aa ii nn mm ee dd ii aa ,, 22 00 00 11 22 00 11 00 (( cc aa ll ee nn dd aa rr yy ee aa rr ss ))

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

    Cinema 64.4 57.9 65.8 74.1 83.6 85.5 93.0 96.0 88.7 99.4

    Outdoor 271.1 261.0 296.6 327.1 353.8 378.7 436.5 453.9 399.9 477.3

    Online 0.0 167.0 236.0 388.0 620.0 1,001.0 1,346.0 1,710.3 1,871.3 2264.5

    Radio 695.0 702.4 737.0 841.6 897.5 924.8 984.4 992.0 936.2 1001.3

    Television 2,490.2 2,659.4 2,923.8 3,265.5 3,376.1 3,419.7 3,750.2 3,729.0 3,484.3 3888.8

    Print media 4,871.3 4,995.3 5,400.4 5,866.3 6,226.0 6,023.5 6,582.0 6,695.7 5,799.4 5778.3

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    $('000)

    PP rr oo pp oo rr tt ii oo nn oo ff 22 00 11 00 aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee bb rr ee aa kk dd oo ww nn bb yy mm aa ii nn mm ee dd ii aa cc aa tt ee gg oo rr yy

    Print media43%

    Television29%

    Radio7%

    Online17%

    Outdoor4%

    Cinema1%

    FF ii gg uu rr ee 11 .. 22 22 OO nn ll ii nn ee aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee ,, 22 00 00 88 tt oo 22 00 11 00

    464,500 498,000

    605,250

    439,250 429,000

    531,000

    806,500

    944,250

    1,128,250

    0

    200,000

    400,000

    600,000

    800,000

    1,000,000

    1,200,000

    2008 2009 2010

    $ ('000)

    Calendar year

    Online general Classifieds Search and directories

    6,172 7,195

    8,094 8,895

    10,033

    44% 48% 52%

    56% 60%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    Jun-07 Jun-08 Jun-09 Jun-10 Jun-11

    % of o

    nline po

    pulation

    Num

    ber of persons age

    d 14

    years and

    over ('0

    00s)

    More than once a day

    Proportion of online population

    FF ii gg uu rr ee 11 .. 22 44 AA vv ee rr aa gg ee tt ii mm ee ss pp ee nn tt vv ii ee ww ii nn gg tt ee ll ee vv ii ss ii oo nn ii nn FF TT AA -- oo nn ll yy aa nn dd SS TT VV hh oo uu ss ee hh oo ll dd ss ,, 22

    119

    76

    158

    90

    117

    163

    210

    0

    50

    100

    150

    200

    250

    FTA TV-only households Subscription TV households

    Minutes per day

    Total commercial Total FTA Total subscription TV Total TV

    0

    60

    120

    180

    240

    300

    360

    04 512 1317 1824 2539 4054 5564 65+

    Minutes per day

    Age group

    FTA TV-only 2008

    FTA TV-only 2010

    Subscription TV 2008

    Subscription TV 2010

    FTA TV only households

    Subscription TV households

    60

    67 72

    37 35 41

    115

    107

    88

    58

    42 45

    112

    97

    76

    0

    60

    120

    04 512 1317 04 512 1317

    FTA TV-only Subscription TV

    Minutes per day

    Age group

    Total commercial Total FTA Total subscription TV

    115

    144

    183

    75

    93

    130 140

    180

    260

    85 106

    164

    115

    132

    164

    0

    60

    120

    180

    240

    300

    2539 4054 65+ 2539 4054 65+

    FTA TV-only Subscription TV

    Minutes per day

    Age group

    Total commercial Total FTA Total subscription TV

    0 500 1,000 1,500 2,000 2,500 3,000

    Streamed radio

    Streamed music

    Downloaded video clips

    Downloaded audio/video podcasts

    Downloaded TV programs

    Streamed TV (e.g. ABC iView)

    Downloaded feature-length movie

    Streamed video (e.g. YouTube)*

    Number of persons aged 14 years and over ('000s)

    Jun-11

    Jun-10

    Jun-09

    Jun-08

    FF ii gg uu rr ee 11 .. 22 CC oomm pp oo ss ii tt ii oo nn oo ff TT ee ll ss tt rr aa ss pp rr oo dd uu cc tt rr ee vv ee nn uu ee ,, bb yy ff ii nn aa nn cc ii aa ll yy ee aa rr

    29

    24

    9 11

    6 7

    14

    33

    21

    9 9 8

    7

    13

    0

    5

    10

    15

    20

    25

    30

    35

    Mobile services

    Public switched telephone

    network (PSTN)

    Sensis* Other fixed Fixed-line broadband

    IP and data Other

    % of p

    rodu

    ct re

    venu

    e

    200910 201011

    200506 200304 200405 200203 200102 200001 200607 200708 200809 200910 201011

    Financial year

    200506 200304 200405 200203 200102 200001 200607 200708 200809 200910 201011

    ADSL22%

    Mobile wireless*23%

    Mobile phonehandset47%

    Other5%

    Dial-up3%

    FF ii gg uu rr ee 11 .. 11 33 VV oo ll uu mm ee oo ff dd aa tt aa dd oo ww nn ll oo aa dd ee dd bb yy AA uu ss tt rr aa ll ii aa nn ii nn tt ee rr nn ee tt uu ss ee rr ss

    Dec-09 Jun-10 Dec-10 Jun-11

    Dial-up 294 280 183 106

    Wireless broadband 14,251 13,330 16,990 19,149

    Fixed-line broadband 113,410 141,892 174,665 254,947

    0

    50,000

    100,000

    150,000

    200,000

    250,000

    300,000

    Terabytes

    Fixed-line broadband

    Wireless broadband

    Dial-up

    127,954

    155,503

    191,839

    274,202

    FFrreeee tt oo--aaiirr bbrrooaaddccaasstt iinngg iinndduusstt rryy rreevveennuueess,, AAuusstt rraalliiaa,, 220000660077 tt oo 220011001111 (( CCoonnsstt aanntt PPrriicceess))

    5.77 5.22 5.09

    4.47 4.60 4.60

    1.33 1.34 1.36 1.29 1.29 1.35

    0.00

    0.20

    0.40

    0.60

    0.80

    1.00

    1.20

    1.40

    1.60

    0.00

    1.00

    2.00

    3.00

    4.00

    5.00

    6.00

    7.00

    200506 200607 200708 200809 200910 201011

    Rad

    io re

    venu

    e

    Television

    s revenu

    e

    Free-to-air television Radio services $ billion $ billion

    Note: Includes wholesale services.Source: The ACMA annual industry data request.

    The shift away from fixed-line telephony continued in the year to June 2011 (Figure 1.4). An estimated 2.7 million Australians aged 14 years and over did not have a fixed-line telephone at home, compared to 2.3 million at June 2010an increase of 17 per cent. Sixty-one per cent of those living in a household without a fixed-line voice service are aged 1834 years. Of this group:

    > 96 per cent used a mobile phone

    > 30 per cent resided in a shared household

    > 26 per cent resided in a household with a partner and no children.9

    The decline of traditional fixed-line telephone services also confirms recent changes in consumer communications trends; in particular, the increasing use of mobile phones and take-up of other communication technologies such as VoIP and wireless communications (Figure 1.4). At June 2011, approximately 3.8 million Australians aged 14 years and over used some form of VoIP service at home, compared to 2.9 million at June 2010, an increase of 31 per cent. While 83 per cent of VoIP users in Australia used VoIP via a computer, 15 per cent did so via a home phone (e.g. an internet phone or voice box/adaptor)a substitute to the traditional PSTN serviceand seven per cent via their mobile handset.10

    While the numbers are still relatively low, there has been significant rise in the number of Australians using VoIP via their mobile handsets, enabled by the increased ownership of smartphones and the development of VoIP applications for mobiles. In addition, most mobile platforms now have applications available for VoIP calling, instead of using an internet service provider. At June 2011, approximately 274,000 Australians used VoIP via their mobile phone handset, compared to 84,000 at June 2010, an increase of 226 per cent.

  • At June 2011, an estimated 13 per cent of Australian adult consumers (aged 18 years and over) are considering using a VoIP service in the next 12 months.11

    The level that consumers take up VoIP over the next 12 monthsand consequently disconnect their home fixed-line telephone servicewill be instructive. The general willingness of consumers to consider VoIP is indicative of their changing attitudes to traditional voice communications in favour of those that are equal or superior in terms of cost and flexibility.

    Ongoing developments on the supply-side of the VoIP market are likely to further drive its take-up as an alternative to traditional fixed-line and mobile voice services, with impacts on established carrier-based voice communications. Microsofts purchase of Skype Technologies12with the expected integration of Skype into Microsoft productsand Skypes integration of outbound calls to landlines and mobiles phones13 are two such examples.

    VoIP continues to make inroads into the business market in Australia with 30 per cent of small and medium enterprises (SMEs) estimated to be using VoIP at April 2011 compared to 26 per cent at April 2010.14 For further information on take-up and use of communications technologies, including VoIP services, see report 2 in the ACMAs 201011 Communications report series, Converging communications channels: Preferences and behaviours of Australian communications users.

    Figure 1.4 Take-up of select communication technologies

    709

    1,009

    1,433

    655

    787

    568

    515

    2,314

    796

    757

    1,347

    560

    625

    355

    455

    724

    625

    1,089

    562

    478

    292

    329

    912

    1,202

    1,580

    786

    974

    1,056

    612

    2,631

    FF ii gg uu rr ee 11 .. 11 CC hh aa nn gg ee ii nn tthh ee ss hh aa rr ee oo ff AA uu ss tt rr aa ll ii aa nn ttee ll ee ccoommmm uu nn ii cc aa tt ii oo nn ss ii nn dd uu ss tt rr yy ** rr ee vv ee nn uu ee ,, 22 00 00 55 00 66 ttoo 22 00 11 00 11 11

    10 9 9 8 7 7

    13 14 15 15 15 15

    36 38 41

    44 47 50

    41 38 36 33

    30 28

    0

    20

    40

    60

    80

    100

    200506 200607 200708 200809 200910 201011

    % share of telecom

    mun

    ication indu

    stry re

    venu

    es

    Fixedtelecommunications

    Mobiletelecommunications

    Internet serviceproviders

    Telecommunicationsresellers

    FF ii gg uu rr ee 11 .. 33 FF ii xx ee dd -- ll ii nn ee tt ee ll ee pp hh oo nn ee ss ee rr vv ii cc ee mm aa rr kk ee tt ss hh aa rr ee ,, AA uu ss tt rr aa ll ii aa

    18% 21%

    82% 79%

    Jun-10 Jun-11

    Telstra

    Optus and other

    FF ii gg uu rr ee 11 .. 44 TT aa kk ee -- uu pp oo ff ss ee ll ee cc tt cc oo mm mm uu nn ii cc aa tt ii oo nn tt ee cc hh nn oo ll oo gg ii ee ss

    Home fixed-line telephone

    No home fixed-line telephone

    Mobile phone

    VoIP at home

    VoIP via mobile

    Home internet

    connection

    Home broadband connection

    Use internet via mobile phone handset

    Voice services Data services

    Jun-08 15.4 1.3 14.3 1.4 0.0 12.4 9.7

    Jun-09 15.3 1.7 14.8 2.2 0.1 13.3 11.1

    Jun-10 15.0 2.3 15.2 2.9 0.1 13.8 11.8

    Jun-11 15.1 2.7 16.1 3.8 0.3 14.6 12.7

    1.3

    1.6

    2.4

    3.9

    0 2 4 6 8

    10 12 14 16 18

    Num

    ber of persons age

    d 14

    years and

    over (m

    illion

    )

    Jun-08 Jun-09 Jun-10 Jun-11

    FF ii gg uu rr ee 11 .. 55 TT yy pp ee ss oo ff ss ee rr vv ii cc ee ss bb uu nn dd ll ee dd

    97

    86

    48

    12

    1

    96

    89

    56

    18

    1 0

    20

    40

    60

    80

    100

    Fixed-linetelephone

    Internet Mobile phone Pay TV VoIP

    % fixed-line teleph

    one users ag

    ed 18 years and over Apr-10 Apr-11

    MM aa rr kk ee tt ss hh aa rr ee oo ff mm oo bb ii ll ee ss ee rr vv ii cc ee ss ii nn oo pp ee rr aa tt ii oo nn ,, JJ uu nn ee 22 00 11 11

    Telstra42%

    Optus31%

    VHA27%

    FF ii gg uu rr ee 11 .. 99 MM oo bb ii ll ee tt ee ll ee pp hh oo nn ee ss aa cc tt ii vv ii tt ii ee ss uu nn dd ee rr tt aa kk ee nn dd uu rr ii nn gg JJ uu nn ee

    0

    2

    2

    2

    3

    3

    9

    10

    10

    10

    12

    15

    21

    22

    23

    23

    23

    25

    39

    49

    75

    81

    83

    88

    1

    2

    2

    3

    2

    3

    8

    10

    10

    5

    9

    12

    15

    18

    20

    22

    24

    20

    36

    46

    75

    82

    84

    88

    0 20 40 60 80 100

    Can't say

    Infra-red functions

    Video messaging

    Haven't used my main mobile phone in the last 4 weeks

    Global roaming

    Made video calls

    Listening to the radio

    Made overseas calls

    Entered a competition or voted using SMS

    GPS (global positional system) functions

    Using as a personal organiser or PDA

    Taking videos

    Did one or more internet activities

    Playing music/MP3s

    Picture messaging/MMS

    Made interstate calls

    Bluetooth functions

    Playing games

    Received voice mail

    Taking photos

    Made local calls

    Sent SMS

    Received SMS

    Made calls to mobiles

    % of people aged 14 years and over

    2010

    2011

    FF ii gg uu rr ee 11 .. 11 00 CC oo nn ss uu mm ee rr tt aa kk ee -- uu pp oo ff mm oo bb ii ll ee pp hh oo nn ee ss ,, bb yy hh aa nn dd ss ee tt tt yy pp ee

    27

    58

    37

    0

    20

    40

    60

    2G handset 3G handset Smartphone

    % m

    obile pho

    ne users who

    use handset type

    FF ii gg uu rr ee 11 .. 11 11 AA cc tt ii vv ii tt ii ee ss uu nn dd ee rr tt aa kk ee nn oo nn ll ii nn ee vv ii aa mm oo bb ii ll ee pp hh oo nn ee hh aa nn dd ss ee tt ss

    13

    33

    72

    74

    74

    8

    19

    42

    49

    46

    0 20 40 60 80 100

    Made VoIP calls

    Played a game online

    Downloaded any apps

    Accessed social networking sites suchas Facebook, Myspace or LinkedIn

    Sent or received email

    % of persons aged 18 years and over who used the internet via their mobile handset

    3G phone (not smartphone)

    Smartphone

    FF ii gg uu rr ee 11 .. 11 22 DD ii ss tt rr ii bb uu tt ii oo nn oo ff ii nn tt ee rr nn ee tt ss uu bb ss cc rr ii bb ee rr ss bb yy aa cc cc ee ss ss tt ee cc hh nn oo ll oo gg yy ,, AA uu ss tt rr aa

    FF ii gg uu rr ee 11 .. 11 44 AA dd dd ii tt ii oo nn aa ll II SS PP ss ee rr vv ii cc ee oo ff ff ee rr ii nn gg ,, AA uu ss tt rr aa ll ii aa

    8

    11

    8

    9

    28

    42

    35

    50

    61

    72

    4

    6

    8

    10

    27

    30

    34

    52

    55

    76

    0 10 20 30 40 50 60 70 80

    IPTV

    No other services offered

    Digital television

    Other services offered

    Web content filtering

    Naked DSL

    Mobile telephone

    Home telephone

    VoIP

    Email content filtering

    % of ISPs

    Jun-10

    Jun-11

    FF ii gg uu rr ee 11 .. 11 55 TT rr ee nn dd ss ii nn cc aa rr rr ii ee rr ll ii cc ee nn ss ii nn gg

    FF ii gg uu rr ee 11 .. 11 66 TT rr ee nn dd ss ii nn nn oo mm ii nn aa tt ee dd cc aa rr rr ii ee rr dd ee cc ll aa rr aa tt ii oo nn ss

    32

    23 20

    14

    40

    35

    25

    17

    22 19 18

    4

    13

    7 9 8 9

    14 13

    20

    16

    4

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    Num

    ber of licences

    Financial year

    Licences granted

    Licences surrendered/cancelled

    7

    5

    11 11

    17

    11

    7

    13

    8

    4 4

    1

    3

    0

    7

    3

    7

    5

    3

    11

    1

    7

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    Num

    ber of licences

    NCDs granted

    NCDs revoked

    FF ii gg uu rr ee 11 .. 11 77 GG ee oo gg rr aa pp hh ii cc nn uu mm bb ee rr aa ll ll oo cc aa tt ii oo nn ss

    1,021,000

    3,235,600

    4,508,600

    3,132,400

    1,478,800

    1,072,800

    -

    500,000

    1,000,000

    1,500,000

    2,000,000

    2,500,000

    3,000,000

    3,500,000

    4,000,000

    4,500,000

    5,000,000

    200506 200607 200708 200809 200910 201011

    Num

    bers allocated

    Financial year

    FF ii gg uu rr ee 11 .. 11 99 NN uumm bbee rr oo ff bb rr oo aa ddccaa ss tt ii nn gg ll ii cc ee nn ccee ss ii nn oo ppee rr aa tt ii oo nn ii nn AA uu ss tt rr aa ll ii aa

    273

    71

    2,700

    356

    81 100 273

    69

    2,759

    356

    81 106

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    Commercial radio Commercialtelevision

    Subscriptiontelevision

    Community radio Community television

    Temporary community radio

    Num

    ber of licences

    Licence type

    Jun-10 Jul-11

    FF ii gg uu rr ee 11 .. 22 00 DD ii ss tt rr ii bb uu tt ii oo nn oo ff aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee aa cc rr oo ss ss mm aa ii nn mm ee dd ii aa ,, 22 00 00 11 22 00 11 00 (( cc aa ll ee nn dd aa rr yy ee aa rr ss ))

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

    Cinema 64.4 57.9 65.8 74.1 83.6 85.5 93.0 96.0 88.7 99.4

    Outdoor 271.1 261.0 296.6 327.1 353.8 378.7 436.5 453.9 399.9 477.3

    Online 0.0 167.0 236.0 388.0 620.0 1,001.0 1,346.0 1,710.3 1,871.3 2264.5

    Radio 695.0 702.4 737.0 841.6 897.5 924.8 984.4 992.0 936.2 1001.3

    Television 2,490.2 2,659.4 2,923.8 3,265.5 3,376.1 3,419.7 3,750.2 3,729.0 3,484.3 3888.8

    Print media 4,871.3 4,995.3 5,400.4 5,866.3 6,226.0 6,023.5 6,582.0 6,695.7 5,799.4 5778.3

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    $('000)

    PP rr oo pp oo rr tt ii oo nn oo ff 22 00 11 00 aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee bb rr ee aa kk dd oo ww nn bb yy mm aa ii nn mm ee dd ii aa cc aa tt ee gg oo rr yy

    Print media43%

    Television29%

    Radio7%

    Online17%

    Outdoor4%

    Cinema1%

    FF ii gg uu rr ee 11 .. 22 22 OO nn ll ii nn ee aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee ,, 22 00 00 88 tt oo 22 00 11 00

    464,500 498,000

    605,250

    439,250 429,000

    531,000

    806,500

    944,250

    1,128,250

    0

    200,000

    400,000

    600,000

    800,000

    1,000,000

    1,200,000

    2008 2009 2010

    $ ('000)

    Calendar year

    Online general Classifieds Search and directories

    6,172 7,195

    8,094 8,895

    10,033

    44% 48% 52%

    56% 60%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    Jun-07 Jun-08 Jun-09 Jun-10 Jun-11

    % of o

    nline po

    pulation

    Num

    ber of persons age

    d 14

    years and

    over ('0

    00s)

    More than once a day

    Proportion of online population

    FF ii gg uu rr ee 11 .. 22 44 AA vv ee rr aa gg ee tt ii mm ee ss pp ee nn tt vv ii ee ww ii nn gg tt ee ll ee vv ii ss ii oo nn ii nn FF TT AA -- oo nn ll yy aa nn dd SS TT VV hh oo uu ss ee hh oo ll dd ss ,, 22

    119

    76

    158

    90

    117

    163

    210

    0

    50

    100

    150

    200

    250

    FTA TV-only households Subscription TV households

    Minutes per day

    Total commercial Total FTA Total subscription TV Total TV

    0

    60

    120

    180

    240

    300

    360

    04 512 1317 1824 2539 4054 5564 65+

    Minutes per day

    Age group

    FTA TV-only 2008

    FTA TV-only 2010

    Subscription TV 2008

    Subscription TV 2010

    FTA TV only households

    Subscription TV households

    60

    67 72

    37 35 41

    115

    107

    88

    58

    42 45

    112

    97

    76

    0

    60

    120

    04 512 1317 04 512 1317

    FTA TV-only Subscription TV

    Minutes per day

    Age group

    Total commercial Total FTA Total subscription TV

    115

    144

    183

    75

    93

    130 140

    180

    260

    85 106

    164

    115

    132

    164

    0

    60

    120

    180

    240

    300

    2539 4054 65+ 2539 4054 65+

    FTA TV-only Subscription TV

    Minutes per day

    Age group

    Total commercial Total FTA Total subscription TV

    0 500 1,000 1,500 2,000 2,500 3,000

    Streamed radio

    Streamed music

    Downloaded video clips

    Downloaded audio/video podcasts

    Downloaded TV programs

    Streamed TV (e.g. ABC iView)

    Downloaded feature-length movie

    Streamed video (e.g. YouTube)*

    Number of persons aged 14 years and over ('000s)

    Jun-11

    Jun-10

    Jun-09

    Jun-08

    FF ii gg uu rr ee 11 .. 22 CC oomm pp oo ss ii tt ii oo nn oo ff TT ee ll ss tt rr aa ss pp rr oo dd uu cc tt rr ee vv ee nn uu ee ,, bb yy ff ii nn aa nn cc ii aa ll yy ee aa rr

    29

    24

    9 11

    6 7

    14

    33

    21

    9 9 8

    7

    13

    0

    5

    10

    15

    20

    25

    30

    35

    Mobile services

    Public switched telephone

    network (PSTN)

    Sensis* Other fixed Fixed-line broadband

    IP and data Other

    % of p

    rodu

    ct re

    venu

    e

    200910 201011

    200506 200304 200405 200203 200102 200001 200607 200708 200809 200910 201011

    Financial year

    200506 200304 200405 200203 200102 200001 200607 200708 200809 200910 201011

    ADSL22%

    Mobile wireless*23%

    Mobile phonehandset47%

    Other5%

    Dial-up3%

    FF ii gg uu rr ee 11 .. 11 33 VV oo ll uu mm ee oo ff dd aa tt aa dd oo ww nn ll oo aa dd ee dd bb yy AA uu ss tt rr aa ll ii aa nn ii nn tt ee rr nn ee tt uu ss ee rr ss

    Dec-09 Jun-10 Dec-10 Jun-11

    Dial-up 294 280 183 106

    Wireless broadband 14,251 13,330 16,990 19,149

    Fixed-line broadband 113,410 141,892 174,665 254,947

    0

    50,000

    100,000

    150,000

    200,000

    250,000

    300,000

    Terabytes

    Fixed-line broadband

    Wireless broadband

    Dial-up

    127,954

    155,503

    191,839

    274,202

    FFrreeee tt oo--aaiirr bbrrooaaddccaasstt iinngg iinndduusstt rryy rreevveennuueess,, AAuusstt rraalliiaa,, 220000660077 tt oo 220011001111 (( CCoonnsstt aanntt PPrriicceess))

    5.77 5.22 5.09

    4.47 4.60 4.60

    1.33 1.34 1.36 1.29 1.29 1.35

    0.00

    0.20

    0.40

    0.60

    0.80

    1.00

    1.20

    1.40

    1.60

    0.00

    1.00

    2.00

    3.00

    4.00

    5.00

    6.00

    7.00

    200506 200607 200708 200809 200910 201011

    Rad

    io re

    venu

    e

    Television

    s revenu

    e

    Free-to-air television Radio services $ billion $ billion

    Source: Roy Morgan Single Source, June 2011.

    ACMA consumer research has identified cost as a dominant source of dissatisfaction among fixed-line users and therefore a driver in a consumers decision to disconnect a home fixed-line telephone service. Polling of current fixed-line users indicates that satisfaction levels in the area of line rental are significantly lower than in any other aspect of fixed-line service, with one in three expressing a level of dissatisfaction with the cost.15 At April 2011, 54 per cent of consumers who had disconnected their fixed-line household phone had done so to save on the cost of line rental.

    Efforts by carriers to attract or retain fixed-line customers have focused on providing financial incentives such as low-cost line rental or unlimited local calls when bundled with other communications services, such as internet.

    The use of bundling to drive the retention of a fixed-line service is based on encouraging consumers to subscribe to multiple services through the same provider, usually in return for a price reduction on one or all of the services. At April 2011, 53 per cent of adult consumers aged 18 years and over (3.6 million people) were estimated to have two or more telecommunications services provided via a bundling arrangement with their provider.

    36 | Chapter 1 The Australian communications and media market

  • ACMA Communications report 201011 | 37

    As shown in Figure 1.5, 96 per cent of these consumers included a home telephone line as part of the bundling arrangement, 89 per cent an internet service, 56 per a mobile service and 18 per cent a pay TV subscription.16

    Figure 1.5 Types of services bundled

    709

    1,009

    1,433

    655

    787

    568

    515

    2,314

    796

    757

    1,347

    560

    625

    355

    455

    724

    625

    1,089

    562

    478

    292

    329

    912

    1,202

    1,580

    786

    974

    1,056

    612

    2,631

    FF ii gg uu rr ee 11 .. 11 CC hh aa nn gg ee ii nn tthh ee ss hh aa rr ee oo ff AA uu ss tt rr aa ll ii aa nn ttee ll ee ccoommmm uu nn ii cc aa tt ii oo nn ss ii nn dd uu ss tt rr yy ** rr ee vv ee nn uu ee ,, 22 00 00 55 00 66 ttoo 22 00 11 00 11 11

    10 9 9 8 7 7

    13 14 15 15 15 15

    36 38 41

    44 47 50

    41 38 36 33

    30 28

    0

    20

    40

    60

    80

    100

    200506 200607 200708 200809 200910 201011

    % share of telecom

    mun

    ication indu

    stry re

    venu

    es

    Fixedtelecommunications

    Mobiletelecommunications

    Internet serviceproviders

    Telecommunicationsresellers

    FF ii gg uu rr ee 11 .. 33 FF ii xx ee dd -- ll ii nn ee tt ee ll ee pp hh oo nn ee ss ee rr vv ii cc ee mm aa rr kk ee tt ss hh aa rr ee ,, AA uu ss tt rr aa ll ii aa

    18% 21%

    82% 79%

    Jun-10 Jun-11

    Telstra

    Optus and other

    FF ii gg uu rr ee 11 .. 44 TT aa kk ee -- uu pp oo ff ss ee ll ee cc tt cc oo mm mm uu nn ii cc aa tt ii oo nn tt ee cc hh nn oo ll oo gg ii ee ss

    Home fixed-line telephone

    No home fixed-line telephone

    Mobile phone

    VoIP at home

    VoIP via mobile

    Home internet

    connection

    Home broadband connection

    Use internet via mobile phone handset

    Voice services Data services

    Jun-08 15.4 1.3 14.3 1.4 0.0 12.4 9.7

    Jun-09 15.3 1.7 14.8 2.2 0.1 13.3 11.1

    Jun-10 15.0 2.3 15.2 2.9 0.1 13.8 11.8

    Jun-11 15.1 2.7 16.1 3.8 0.3 14.6 12.7

    1.3

    1.6

    2.4

    3.9

    0 2 4 6 8

    10 12 14 16 18

    Num

    ber of persons age

    d 14

    years and

    over (m

    illion

    )

    Jun-08 Jun-09 Jun-10 Jun-11

    FF ii gg uu rr ee 11 .. 55 TT yy pp ee ss oo ff ss ee rr vv ii cc ee ss bb uu nn dd ll ee dd

    97

    86

    48

    12

    1

    96

    89

    56

    18

    1 0

    20

    40

    60

    80

    100

    Fixed-linetelephone

    Internet Mobile phone Pay TV VoIP

    % fixed-line teleph

    one users ag

    ed 18 years and over Apr-10 Apr-11

    MM aa rr kk ee tt ss hh aa rr ee oo ff mm oo bb ii ll ee ss ee rr vv ii cc ee ss ii nn oo pp ee rr aa tt ii oo nn ,, JJ uu nn ee 22 00 11 11

    Telstra42%

    Optus31%

    VHA27%

    FF ii gg uu rr ee 11 .. 99 MM oo bb ii ll ee tt ee ll ee pp hh oo nn ee ss aa cc tt ii vv ii tt ii ee ss uu nn dd ee rr tt aa kk ee nn dd uu rr ii nn gg JJ uu nn ee

    0

    2

    2

    2

    3

    3

    9

    10

    10

    10

    12

    15

    21

    22

    23

    23

    23

    25

    39

    49

    75

    81

    83

    88

    1

    2

    2

    3

    2

    3

    8

    10

    10

    5

    9

    12

    15

    18

    20

    22

    24

    20

    36

    46

    75

    82

    84

    88

    0 20 40 60 80 100

    Can't say

    Infra-red functions

    Video messaging

    Haven't used my main mobile phone in the last 4 weeks

    Global roaming

    Made video calls

    Listening to the radio

    Made overseas calls

    Entered a competition or voted using SMS

    GPS (global positional system) functions

    Using as a personal organiser or PDA

    Taking videos

    Did one or more internet activities

    Playing music/MP3s

    Picture messaging/MMS

    Made interstate calls

    Bluetooth functions

    Playing games

    Received voice mail

    Taking photos

    Made local calls

    Sent SMS

    Received SMS

    Made calls to mobiles

    % of people aged 14 years and over

    2010

    2011

    FF ii gg uu rr ee 11 .. 11 00 CC oo nn ss uu mm ee rr tt aa kk ee -- uu pp oo ff mm oo bb ii ll ee pp hh oo nn ee ss ,, bb yy hh aa nn dd ss ee tt tt yy pp ee

    27

    58

    37

    0

    20

    40

    60

    2G handset 3G handset Smartphone

    % m

    obile pho

    ne users who

    use handset type

    FF ii gg uu rr ee 11 .. 11 11 AA cc tt ii vv ii tt ii ee ss uu nn dd ee rr tt aa kk ee nn oo nn ll ii nn ee vv ii aa mm oo bb ii ll ee pp hh oo nn ee hh aa nn dd ss ee tt ss

    13

    33

    72

    74

    74

    8

    19

    42

    49

    46

    0 20 40 60 80 100

    Made VoIP calls

    Played a game online

    Downloaded any apps

    Accessed social networking sites suchas Facebook, Myspace or LinkedIn

    Sent or received email

    % of persons aged 18 years and over who used the internet via their mobile handset

    3G phone (not smartphone)

    Smartphone

    FF ii gg uu rr ee 11 .. 11 22 DD ii ss tt rr ii bb uu tt ii oo nn oo ff ii nn tt ee rr nn ee tt ss uu bb ss cc rr ii bb ee rr ss bb yy aa cc cc ee ss ss tt ee cc hh nn oo ll oo gg yy ,, AA uu ss tt rr aa

    FF ii gg uu rr ee 11 .. 11 44 AA dd dd ii tt ii oo nn aa ll II SS PP ss ee rr vv ii cc ee oo ff ff ee rr ii nn gg ,, AA uu ss tt rr aa ll ii aa

    8

    11

    8

    9

    28

    42

    35

    50

    61

    72

    4

    6

    8

    10

    27

    30

    34

    52

    55

    76

    0 10 20 30 40 50 60 70 80

    IPTV

    No other services offered

    Digital television

    Other services offered

    Web content filtering

    Naked DSL

    Mobile telephone

    Home telephone

    VoIP

    Email content filtering

    % of ISPs

    Jun-10

    Jun-11

    FF ii gg uu rr ee 11 .. 11 55 TT rr ee nn dd ss ii nn cc aa rr rr ii ee rr ll ii cc ee nn ss ii nn gg

    FF ii gg uu rr ee 11 .. 11 66 TT rr ee nn dd ss ii nn nn oo mm ii nn aa tt ee dd cc aa rr rr ii ee rr dd ee cc ll aa rr aa tt ii oo nn ss

    32

    23 20

    14

    40

    35

    25

    17

    22 19 18

    4

    13

    7 9 8 9

    14 13

    20

    16

    4

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    Num

    ber of licences

    Financial year

    Licences granted

    Licences surrendered/cancelled

    7

    5

    11 11

    17

    11

    7

    13

    8

    4 4

    1

    3

    0

    7

    3

    7

    5

    3

    11

    1

    7

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    Num

    ber of licences

    NCDs granted

    NCDs revoked

    FF ii gg uu rr ee 11 .. 11 77 GG ee oo gg rr aa pp hh ii cc nn uu mm bb ee rr aa ll ll oo cc aa tt ii oo nn ss

    1,021,000

    3,235,600

    4,508,600

    3,132,400

    1,478,800

    1,072,800

    -

    500,000

    1,000,000

    1,500,000

    2,000,000

    2,500,000

    3,000,000

    3,500,000

    4,000,000

    4,500,000

    5,000,000

    200506 200607 200708 200809 200910 201011

    Num

    bers allocated

    Financial year

    FF ii gg uu rr ee 11 .. 11 99 NN uumm bbee rr oo ff bb rr oo aa ddccaa ss tt ii nn gg ll ii cc ee nn ccee ss ii nn oo ppee rr aa tt ii oo nn ii nn AA uu ss tt rr aa ll ii aa

    273

    71

    2,700

    356

    81 100 273

    69

    2,759

    356

    81 106

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    Commercial radio Commercialtelevision

    Subscriptiontelevision

    Community radio Community television

    Temporary community radio

    Num

    ber of licences

    Licence type

    Jun-10 Jul-11

    FF ii gg uu rr ee 11 .. 22 00 DD ii ss tt rr ii bb uu tt ii oo nn oo ff aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee aa cc rr oo ss ss mm aa ii nn mm ee dd ii aa ,, 22 00 00 11 22 00 11 00 (( cc aa ll ee nn dd aa rr yy ee aa rr ss ))

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

    Cinema 64.4 57.9 65.8 74.1 83.6 85.5 93.0 96.0 88.7 99.4

    Outdoor 271.1 261.0 296.6 327.1 353.8 378.7 436.5 453.9 399.9 477.3

    Online 0.0 167.0 236.0 388.0 620.0 1,001.0 1,346.0 1,710.3 1,871.3 2264.5

    Radio 695.0 702.4 737.0 841.6 897.5 924.8 984.4 992.0 936.2 1001.3

    Television 2,490.2 2,659.4 2,923.8 3,265.5 3,376.1 3,419.7 3,750.2 3,729.0 3,484.3 3888.8

    Print media 4,871.3 4,995.3 5,400.4 5,866.3 6,226.0 6,023.5 6,582.0 6,695.7 5,799.4 5778.3

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    $('000)

    PP rr oo pp oo rr tt ii oo nn oo ff 22 00 11 00 aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee bb rr ee aa kk dd oo ww nn bb yy mm aa ii nn mm ee dd ii aa cc aa tt ee gg oo rr yy

    Print media43%

    Television29%

    Radio7%

    Online17%

    Outdoor4%

    Cinema1%

    FF ii gg uu rr ee 11 .. 22 22 OO nn ll ii nn ee aa dd vv ee rr tt ii ss ii nn gg ee xx pp ee nn dd ii tt uu rr ee ,, 22 00 00 88 tt oo 22 00 11 00

    464,500 498,000

    605,250

    439,250 429,000

    531,000

    806,500

    944,250

    1,128,250

    0

    200,000

    400,000

    600,000

    800,000

    1,000,000

    1,200,000

    2008 2009 2010

    $ ('000)

    Calendar year

    Online general Classifieds Search and directories

    6,172 7,195

    8,094 8,895

    10,033

    44% 48% 52%

    56% 60%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    Jun-07 Jun-08 Jun-09 Jun-10 Jun-11

    % of o

    nline po

    pulation

    Num

    ber of persons age

    d 14

    years and

    over ('0

    00s)

    More than once a day

    Proportion of online population

    FF ii gg uu rr ee 11 .. 22 44 AA vv ee rr aa gg ee tt ii mm ee ss pp ee nn tt vv ii ee ww ii nn gg tt ee ll ee vv ii ss ii oo nn ii nn FF TT AA -- oo nn ll yy aa nn dd SS TT VV hh oo uu ss ee hh oo ll dd ss ,, 22

    119

    76

    158

    90

    117

    163

    210

    0

    50

    100

    150

    200

    250

    FTA TV-only households Subscription TV households

    Minutes per day

    Total commercial Total FTA Total subscription TV Total TV

    0

    60

    120

    180

    240

    300

    360

    04 512 1317 1824 2539 4054 5564 65+

    Minutes per day

    Age group

    FTA TV-only 2008

    FTA TV-only 2010

    Subscription TV 2008

    Subscription TV 2010

    FTA TV only households

    Subscription TV households

    60

    67 72

    37 35 41

    115

    107

    88

    58

    42 45

    112

    97

    76

    0

    60

    120

    04 512 1317 04 512 1317

    FTA TV-only Subscription TV

    Minutes per day

    Age group

    Total commercial Total FTA Total subscription TV

    115

    144

    183

    75

    93

    130 140

    180

    260

    85 106

    164

    115

    132

    164

    0

    60

    120

    180

    240

    300

    2539 4054 65+ 2539 4054 65+

    FTA TV-only Subscription TV

    Minutes per day

    Age group

    Total commercial Total FTA Total subscription TV

    0 500 1,000 1,500 2,000 2,500 3,000

    Streamed radio

    Streamed music

    Downloaded video clips

    Downloaded audio/video podcasts

    Downloaded TV programs

    Streamed TV (e.g. ABC iView)

    Downloaded feature-length movie

    Streamed video (e.g. YouTube)*

    Number of persons aged 14 years and over ('000s)

    Jun-11

    Jun-10

    Jun-09

    Jun-08

    FF ii gg uu rr ee 11 .. 22 CC oomm pp oo ss ii tt ii oo nn oo ff TT ee ll ss tt rr aa ss pp rr oo dd uu cc tt rr ee vv ee nn uu ee ,, bb yy ff ii nn aa nn cc ii aa ll yy ee aa rr

    29

    24

    9 11

    6 7

    14

    33

    21

    9 9 8

    7

    13

    0

    5

    10

    15

    20

    25

    30

    35

    Mobile services

    Public switched teleph