acma research: mobile network broadband - december 2010

Mobile network broadband

December 2010

Canberra Purple Building

Melbourne Level 44

Sydney Level 15 Tower 1

Benjamin Offices Melbourne Central Tower Darling Park Chan Street 360 Elizabeth Street 201 Sussex Street Belconnen ACT Melbourne VIC Sydney NSW

PO Box 78 PO Box 13112 PO Box Q500 Belconnen ACT 2616 Law Courts Queen Victoria Building

Melbourne VIC 8010 NSW 1230

T +61 2 6219 5555 T +61 3 9963 6800 T +61 2 9334 7700 F +61 2 6219 5353 F +61 3 9963 6899 1800 226 667

F +61 2 9334 7799

copy Commonwealth of Australia2010 This work is copyright Apart from any use as permitted under the Copyright Act 1968 no part may be reproduced by any process without prior written permission from the Commonwealth Requests and inquiries concerning reproduction and rights should be addressed to the Manager Communications and Publishing Australian Communications and Media Authority PO Box 13112 Law Courts Melbourne Vic 8010

Published by the Australian Communications and Media Authority

Contents

Introduction 1

Summary 3

What is mobile network broadband 5

Developments in the Australian mobile network broadband market 7

Take-up of mobile network broadband 16

Methodology 24

acma | iii

Introduction Mobile networks are playing an increasingly important role in the provision of

broadband access in Australia This report provides a snapshot of the mobile

network broadband market which is one component of broader Australian

broadband market

The Australian Communications and Media Authority (the ACMA) as an agency

with regulatory responsibility for the communications sector has an ongoing role

in monitoring and reporting on developments in this market This report is part of

a series of strategic research projects outlined in Research at the ACMA - Research

Program Overview 2010-111

The ACMA undertakes research into Australiansrsquo use of and participation in

communications and media to understand the broader changes occurring in the

evolving and converging communications and media environment Structural and

technological changes to the Australian communications landscape as well as

changing service use and preferences by consumers place pressure on the current

regulatory arrangements This research assists the ACMA to identify transition

paths for the regulation that the ACMA administers as well as informing the

development of regulation of existing and new platforms and services in a

converging communications environment

Consumers now have greater choice in terms of networks devices and services

than ever before The continued rollout of alternative infrastructure in particular

wireless broadband networks has enabled the expansion of new mobile service

offerings to consumers and alternatives to traditional communications

This report explores current mobile network broadband trends in Australia It

comments on recent developments in the supply of mobile network broadband

the current service offerings and consumersrsquo adoption and use of mobile network

broadband

Information used in this report has been sourced from research commissioned by

the ACMA (CATI telephone interviews by Taverner Research) the ABS industry

analyst and other research reports and industry websites ndash refer Methodology

1 httpwwwacmagovauWEBSTANDARDpc=PC_311301

acma | 1

Any comments on this report are welcomed and can be sent to

industryreportingacmagovau or to the address below

Manager Communications Analysis Section

Australian Communications and Media Authority

PO Box 13112

Law Courts

Melbourne VIC 8010

2 | acma

Summary

Mobile network broadband is emerging as an important method of provision of

broadband services to Australian consumers The take-up of mobile network

broadband services (which is defined in this report to include mobile wireless

broadband and mobile handset broadband) has grown significantly over the past

two years

According to the Australian Bureau of Statistics (ABS) there was a 71 per cent

increase in the number of mobile wireless broadband subscribers between June

2009 and June 20102 Data also indicates the number of fixed-broadband

subscribers (DSL connections) remained fairly steady over the same period

suggesting that mobile wireless broadband is growing in importance as a

complementary broadband service

Depending on consumer circumstances preferences and the complexity of internet

access needs the mobility offered by mobile wireless broadband is an attractive

feature of this type of broadband connection As a result this may appeal to

consumers without a previous internet connection and to fixed broadband

subscribers - some who may use it as a complementary service others who may

use it as a substitute service

There are a number of factors which demonstrate the complementary nature of

mobile network broadband to fixed broadband connections Fixed broadband

connections have the advantages of higher peak download speeds in most cases

no additional usage charges if the consumer stays under their data allowance

larger download capacity compared to mobile network broadband and cheaper

cost per megabyte of data

Some characteristics of mobile network broadband services such as smaller

download capacity and pricing options at this stage do not appear as competitive

as those for fixed broadband services In June 2010 the ABS reported that 91 per

cent of all data downloaded over non-dial-up internet services was done using a

fixed broadband service3

2 This figure excludes mobile handset broadband access 3 ABS 81530ndashInternet Activity Australia June 2010

acma | 3

Consumer data relating to mobile network broadband usage was collected by the

ACMA in April 2009 and again in April 2010 The data shows that in April 2010 of

those Australian household consumers 18 years and over with a mobile handset

64 per cent had a 3G mobile handset This is a nine percentage point increase

since April 2009 Increasing take-up of 3G mobile phones is an important

development as 3G handsets enable consumers to access mobile handset

broadband services Thirty-two per cent of 3G mobile phone users in April 2009

accessed the internet directly via their handset during the previous six months with

this figure increasing to 40 per cent in April 2010 As consumers continue to

upgrade their mobile handsets it is anticipated that use of mobile handset

broadband will continue to grow

A number of factors are expected to have contributed to the increase in take-up of

mobile network broadband services including

developments in mobile technology

an increasing range of products and services offered by network providers

improvements in mobile network coverage

improvements in data rates

The mobile industry has also made changes to payment and pricing options for

mobile wireless broadband and mobile handset data plans further increasing the

attractiveness of mobile network broadband to consumers

This report has also found that mobile data is becoming an increasingly important

contributor to the revenue base of mobile carriers with major mobile carriers

reporting nearly a third of their revenue as being derived from data services

4 | acma

What is mobile network broadband In this report mobile network broadband refers to the provision of broadband

internet services to consumers using 3G mobile networks

This report considers two main means of accessing mobile network broadband

gt mobile wireless broadband which refers to broadband accessed via a

laptop or PC via a USB modem USB dongle data card or a tablet

gt mobile handset broadband which refers to broadband accessed on a

mobile phone handset or device such as a smartphone

Fixed broadband services are provided via fixed line (ADSL optical fibre cable)

satellite or fixed wireless technology4 These services are not covered in this report

in any depth

In the Australian market there are six options for accessing mobile network

broadband services

gt USB dongles modems or sticks which plug into the USB connection on a

laptop PC or mobile router

gt mobile data cards which plug into a PC card slot

gt laptops with integrated modems

gt tablet devices such as the Apple iPad

gt mobile handsets acting as a modem for a laptop or PC

gt mobile handsets capable of directly accessing the internet for example the

Apple iPhone or Research in Motion (RIM) Blackberry

USB dongles USB modems or sticks and mobile data cards generally contain the

modemrsquos installation software making installation a simple process for consumers

4 While this service uses wireless technology it is more akin to a fixed service which provides data

capability in a fixed location for example WiFi

acma | 5

Figure 1 Examples of USB modems or sticks dongles and data cards supplied in Australia

USB modems USB dongle Data card

6 | acma

Developments in the Australian mobile network broadband market This section explores how mobile network broadband is supplied to consumers It

focuses on developments in technology and in the products and services offered

by broadband service providers which appear to be changing the way consumers

access the internet

Mobile network coverage In recent years mobile carriers have expanded their network coverage for mobile

telephony and data delivery All 3G networks in AustraliamdashTelstra Optus and

Vodafone Hutchison Australia (VHA) (which operates the Vodafone and 3 brands)mdash

operate the high-speed packet access (HSPA) protocol

Telstrarsquos 3G network is claimed to provide coverage to 99 per cent of the

Australian population5 Optusrsquo 3G network is claimed to provide coverage to 97 per

cent of the Australian population with plans to extend to 98 per cent6 VHA is

claimed to provide coverage to between 92 and 95 per cent of the Australian

population7

Mobile network data rates Mobile carriers have increased data rates of their 3G mobile networks through

various upgrade paths and are expected to continue upgrades that deliver even

faster data rates to consumers in coming years

HSPA is a performance enhancing protocol suite upgrade that has been applied to

most 3G networks in Australia based on universal mobile telecommunications

system (UMTS) wideband code division multiple access (WCDMA) technology For

HSPA protocols to increase data rates they must be implemented at the network

base station and with the population of devices such as mobile phone handsets

laptops and modems The two component protocols of HSPA high-speed downlink

packet access (HSDPA) and high-speed upload packet access (HSUPA) work

5 wwwtelstracomaumobilenetworkscoveragebroadbandhtml 6 SingTel Q4 and Full Year Financial Results 20092010 Management Discussions and Analysis May

2010 7 Vodafone coverage maps available at

httpwwwvodafonecomaupersonalservicescoveragemapsindexhtm

acma | 7

together to improve spectral efficiency resulting in improved data rates and

capacity Further detailed information on mobile wireless technologies can be

found in the ACMArsquos Technology developments in the digital economy report

(August 2010)8

The publicly advertised theoretical download speeds provided currently by the

major network providers vary as do the technologies used to provide mobile

network broadband The maximum download speeds range from 36 Mbits up to

42 Mbits in selected areas recognising that such quoted maxima are not

necessarily indicative of typical download speeds There are a number of factors

that affect download speeds including coverage location network congestion

distance from tower and general network and internet traffic With such variances

it is difficult to verify the average download speeds of each of the networks

It is important to note that as networks upgrade it will require customers to have

compatible devices and software to take advantage of the increased data rates

provided by their carrier For example USB modem or mobile handsets have fixed

data transmission rates which means that if the network increases its bandwidth

capabilities the device will need to be updated or replaced to access the higher

transmission rate

It is critical to note that while average speeds and burst speeds are increasing the

speeds available through the current mobile networks appear to vary significantly

and the typical downstream speeds are generally well below the quoted maxima

and highly dependent on the specific situation

8 wwwacmagovauWEBSTANDARDpc=PC_312249

8 | acma

As described above each of the networks offering mobile network broadband

services have different capabilities Table 1 provides a snapshot of the major

mobile network broadband providers the technology used to provide mobile

network broadband and some examples of resellers for each provider

Table 1 Snapshot of network technology and resellers for mobile network broadband current at August 2010

Network owner Technology used Examples of resellers

Telstra HSPA+ with dual

carrier technology

Currently no known resellers

Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet

This list does not include all Optus and VHA resellers

Source Publicly available data from company websites and reports

Telstra wwwtelstracomauabouttelstramedia-centreannouncementstelstra-launches-worlds-first-hspa-dual-carrier-networkxml

accessed 30 August 2010

Optus wwwoptuscomauaboutoptusAbout+OptusNetwork+CoverageMobile+Broadband+Service+Information accessed 29

July 2010

VHA wwwthreecomaucsContentServerc=Pageamppagename=Three2FPage2FThreeLayoutampcid=1221530796538accessed 30

August 2010

Mobile handset functionality

Recent mobile handset developments have helped to provide a simpler and more

effective internet browsing experience enabling consumers to access web content

that had previously been difficult to navigate on the smaller screen of mobile

devices

Driving these developments are smartphonesmdashmobile devices that have the ability

to access content services and applications via the internet Mobile handset

broadband functionality is a fundamental component of smartphone design and

arguably as important as the voice call function Smartphone devices at the

forefront of these developments include the Apple iPhone the Research in Motion

(RIM) BlackBerry and a range of Android smartphones using the Google Android

acma | 9

operating system Applersquos launch of the iPad in 2010 has created a new

competitive market in tablet devices Apple reported sales in excess of three million

units in the quarter following launch of the iPad9 It is important to note that

tablet devices such as the Apple iPad do not have voice call functionality

With their increased processing power and memory smartphones have also given

consumers greater ability to access applications (or apps) Apps are software

programs that are downloaded and installed to perform specific tasks on a mobile

device Consumers require a mobile handset broadband connection to download

apps (although some handsets may feature pre-installed applications) Certain apps

require a mobile handset broadband connection to retrieve data in order to

perform their functions As of June 2010 Apple reported more than 200000 apps

were available for use with its devices10 Competitors in this sector are encouraging

application development and this is occurring at a rapid pace

Other features of mobile handsets that have helped to improve the user experience

and drive the demand for mobile handset broadband include touchscreens

QWERTY keyboards global positioning system (GPS) capabilities and cameras

These features have extended the utility of mobile handsets and helped them

become multi-functional devices rather than simply a telephony device The

introduction of touchscreens and QWERTY keyboards has enabled consumers to

respond to email messages using a traditional keyboard format GPS capabilities in

handsets provide extensive opportunities for application developers to exploit

location-based opportunities while cameras in handsets make it possible for

consumers to upload picture and video content immediately to the internet The

ability to play music whether streamed or downloaded on handsets also drives

demand for mobile handset broadband

9 Apple third quarter 2010 results wwwapplecomprlibrary20100720resultshtml 10 wwwapplecomprlibrary20100909statementhtml

10 | acma

Figure 2 shows the range of functions now available on mobile handsets and the

use of these functions by consumers aged 16 years and over

Figure 2 Mobile device functions and use

Source Nielsen The Australian Internet amp Technology Report February 2010 Note question did not include the use of voice

services

acma | 11

Developments in service offerings by mobile network broadband service providers

Mobile wireless broadband payment options

Consumers can access mobile wireless broadband services through pre-paid or

post-paid plans Pre-paid plans generally require the customer to pay upfront for

the USB modem dongle or data card which provides access to the network and

then make periodic upfront payments for a certain volume of data When the data

limit is reached the broadband service will stop Typically pre-paid plans require

the consumer to use the data within a set period for example 15 days 30 days 60

days or even up to 12 months

Post-paid plans typically require the customer to sign up to a monthly expenditure

commitment for a period of 12 or 24 months which provides access to a specified

volume of data per month Additional charges at higher rates are applied if the

customer exceeds their data allowance To overcome the concerns of some

consumers about excess data charges on post-paid plans some carriers and

resellers have introduced lsquoshapingrsquo of data speeds (the reduction of data rates

when the download quota for the planrsquos billing period has been exceeded) rather

than charging for excess data usage to reduce the risk or quantum of excess data

charges to their customers Shaping of data speeds is also performed by a number

of providers of fixed broadband services

Mobile wireless broadband pricing

The cost of mobile wireless broadband services has decreased during the last two

years At the same time the availability of 3G mobile network coverage has

improved and consumer demand for mobile wireless broadband has increased11

The Internet Industry Associationrsquos Broadband Index found the cost of a one Mbits

(or faster) mobile wireless broadband service providing a data quota of five

gigabytes per month has declined from $4975 per month to $39 per month for

the six months between 30 March 2009 and 30 September 2009 a fall of 22 per

cent12

Post-paid plans and pre-paid plans typically offer customers with lower expenditure

commitments a higher unit cost per gigabyte when compared to customers on

higher expenditure plans For example a customer on a $29 per month pre-paid

11 Internet Industry Association Venture ConsultingIIA Broadband Index Ninth Edition (Q3 2009)

November 2009 wwwiianetauupsidedownpdf 12 Internet Industry Association Venture ConsultingIIA Broadband Index Ninth Edition (Q3 2009)

November 2009 wwwiianetauupsidedownpdf

12 | acma

plan is offered two gigabytes per month at a unit cost of $1450 per gigabyte

while a customer on a $49 pre-paid plan is offered four gigabytes per month at a

unit cost of $1225 per gigabyte

Mobile handset broadband payment options and pricing

Changes to mobile phone payment options are also encouraging consumers to

access data on mobile phones Most post-paid and pre-paid payment options now

either include an allocated data allowance or the opportunity to pay for a volume

of data as part of a package

Data usage allowances are now a fundamental component of mobile capped plans

This is a significant development given that 39 per cent of mobile users now use a

capped plan payment option13

Alternatively consumers may opt to pay for data on an lsquoas-you-gorsquo basis but this

typically charges the consumer a higher cost per megabyte of data than an

allocated or up-front purchase option available with both pre-paid and post-paid

payment plans The lsquoas-you-gorsquo option does present risks to consumers who are

not aware of their data usage and the terms and conditions that apply to that

usage as they may receive unexpectedly high bills for their data use

With the rapid take-up of mobile wireless and handset broadband data plans the

amount of data included within a price plan by the various networks and resellers

and the prices paid for those plans is continually changing

Revenue

Mobile data is becoming an increasingly important contributor to the revenue base

of mobile carriers Table 2 outlines the contribution of data to the reported

revenue of mobile network providers Telstra Optus and VHA

13 The ACMA Mobile capped plans consumer attitudes and behaviours May 2010

acma | 13

Table 2 Mobile network operator revenue

Network owner Time period Revenue from mobile data services

Telstra14 1 July 2009 to 30 Jun 2010 Mobile data revenue was $2470 million up from

$1934 million Of this revenue

gt mobile wireless broadband (data card) revenue

grew by 341 per cent to $787 million

gt mobile handset broadband (non-messaging)

revenue was $317 million up from $263 million

gt messaging revenue was $499 million up from

$437 million

Optus15 31 Mar 2009 to 31 Mar

2010

Of the $1184 million mobile communications service

revenue mobile data revenue accounted for 36 per

cent Non-SMS data accounted for 13 per cent of total

service revenue up from 85 per cent the previous year

This includes revenue from premium SMS services

VHA16 31 Dec 2008 to 31 Dec

2009

Non-voice revenue increased by 459 per cent to

$6773 million Non-voice services contributed 367 per

cent of VHArsquos service revenue


Resellers

Resellers purchase wholesale services from mobile carriers and on-sell these

services under their own brand Some resellers also own a small amount of

infrastructure allowing them to provide support services to customers

Since 2008 a number of mobile wireless broadband resellers have commenced

offering broadband services with most of these services operating on the Optus

3G network17

Examples of resellers that sell mobile wireless broadband services over the Optus

network include Dodo TPG iPrimus People Telecom and Adam Internet while

14Telstra Full Year Financial Results 2010 available at wwwtelstracomauabouttelstrainvestor 15 SingTel Group Q4 financial results 2010 available at httpinfosingtelcomabout-usinvestor-

relationsfinancial-results 16 VHA results include five months of the 3 business and 50 per cent of one month for the merged

entity VHA (3 and Vodafone) available at

httpclientsweblinkcomauclientsHutchison2articleaspview=2559862 17 IDC Australian Mobile Broadband 2008 Competitive Analysis Opening the Floodgates January 2009

14 | acma

TransACT Crazy Johnrsquos iiNet and GRL Mobile offer mobile wireless broadband

packages using the VHA network18 There are currently no known resellers offering

mobile wireless broadband packages over the Telstra network

Most mobile phone resellers offer plans that include a mobile handset broadband

data component to provide their customers with access to the internet through

their handsets Data allowances are typically smaller for lower spending consumers

and increase as customersrsquo monthly expenditure commitments increase Some

providers also allow customers to purchase additional data allowances separately

to their plan

18 This does not include all Optus and VHA resellers

acma | 15

Take-up of mobile network broadband The use of the internet via mobile networks has been a major factor in the growth

of the broadband internet subscriber market in Australia in the last two years

Developments in mobile network coverage bandwidth and pricing have made

mobile network broadband solutions increasingly attractive to consumers

This section examines some of the emerging consumer trends relating to the take-

up and use of broadband internet services via mobile networks in Australia

Increasing use of broadband internet via mobile networks

Mobile wireless broadband

The Australian Bureau of Statistics (ABS) reports that there has been a significant

increase in the number of Australians accessing mobile wireless broadband

According to the ABS at the end of June 2010 there were 877 million non-dial-up

internet subscribers in Australia of which 3455 million were mobile wireless

broadband subscribers 19 This is an increase of 22 per cent from 2838 million in

December 2009 or 71 per cent over the year from June 200920

Data also indicates there has been little change in the number of DSL connections

over the same period This may suggest that mobile wireless broadband is growing

in importance for both industry and consumers as a complementary service to

fixed-line broadband services

19 ABS 81530ndashInternet Activity Australia June 2010 20 ABS 81530ndashInternet Activity Australia June 2010

16 | acma

Figure 3 Number of non-dial-up internet subscribers by technology type

Source ABS 81530ndashInternet Activity Survey June 2010







A complementary service is when a customer maintains communications services

but adds services that provide additional flexibility There are a number of factors

which demonstrate the complementary nature of mobile wireless broadband to

fixed broadband connections

gt Fixed broadband connections have the advantage of higher download

speeds and in most cases no additional usage charges if the consumer

stays under their data allowancemdashthese features are likely to have been

key drivers as to why historically consumers have chosen a fixed

broadband service as their primary service However as discussed earlier

technology developments such as high-speed packet access (HSPA) have

improved mobile network data rates while increasingly competitive pricing

acma | 17

and payment options for mobile wireless broadband have increased its

attractiveness for consumers

gt Mobile wireless broadband services generally provide smaller download

quotas than fixed broadband servicesmdashthis may potentially explain the

order of magnitude difference in data downloaded over fixed and mobile

broadband networks which is discussed later in the report However

mobile service providers continue to expand data allowances

gt Many but not all mobile wireless broadband plans charge per megabyte

for excess usage Most mobile wireless broadband plans count uploaded

and downloaded data towards the limit while most fixed broadband plans

do not

However there may be consumers that choose to substitute their fixed broadband

service for a mobile wireless service A substitute service in this context is where

consumers completely replace one communications service type for another service

type that offers a comparable function for example replacing a fixed broadband

service with a mobile wireless broadband service There may be a number of

reasons for substitution including

gt the advantage of avoiding fixed-line rental costs (although it should also

be noted that line rental costs can to a certain degree be avoided eg by

taking up a lsquonaked DSLrsquo service)

gt the mobility of mobile network broadband in terms of not requiring

disconnection and reconnection processes fees and delays

gt the requirement for a single broadband connection only

gt the complexity and required data rate being comparatively low and

gt a consumer may only have one device with which to access broadband

internet

18 | acma

Table 3 provides a snapshot of the numbers of mobile wireless broadband

customers for the mobile carriers Telstra Optus and VHA The large increase in

mobile wireless broadband is indicative of the increasing significance of these

services to the business models and revenues of mobile carriers in Australia

Table 3 Mobile network operator mobile wireless broadband customers

Network owner December 2008 December 2009 Approximate change

Telstra 828000 1325000 60 per cent

Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


Note Network operators have differing definitions of mobile wireless broadband customers Telstra uses the term wireless

broadband to refer to mobile wireless broadband users accessing the internet via data cards Optus includes customers

provisioned with HSPA broadband service on both post-paid and pre-paid plans excluding data packs attached to voice services

VHA includes customers using mobile wireless broadband cards and USB modems

Mobile handset broadband

At June 200921 there were approximately 1228 million 3G mobile handset services

in operation (SIO) in Australia compared with 855 million at June 200822 The shift

to 3G mobile services continues to drive developments in the mobile market in

Australia as evidenced by the latest data published by Optus and Telstra At the

end of March 2010 Optus reported 361 million 3G SIO an increase of nearly

78 per cent from December 2009 while Telstra reported 725 million 3G SIO an

increase of 146 per cent since June 2009 Growth in the number of 3G SIO is

important as 3G services enable consumers to access the internet via their mobile

handsets It is expected that the growth in 3G SIO will increase the number of

consumers accessing the internet from their handset According to VHArsquos annual

report at 31 December 2009 VHA had 717000 3G SIO that were either a mobile

handset or a handset used as a modem to access the internet23

21 In June 2010 the ABS reported figures relating to the number of mobile handset broadband

subscribers The data suggests a rapid increase in the take-up of mobile handset broadband However

as the method of collecting this data is considered by the ABS to be experimental and it has expressed

caution with its use it will not be published in this report

22 The ACMA ACMA Communications report 2008ndash09 23 Optus SingTel Financial results presentation Q4 FY0910 Year ending 31 March 2010 VHA 2009

Annual Report Telstra 200910 Half Year Financial Results In its 2010 Full Year Financial Results Telstra

did not split 3G and non-3G SIO

acma | 19

The increase of 3G SIO reflects increased availability of 3G handsets particularly

smartphones In the first quarter of 2009 shipments of smartphones exceeded

those of voice centric mobile handsets The Apple iPhone accounted for 21 per

cent of Australian smartphone sales during this period24

The ACMArsquos consumer research also shows an increasing prevalence of consumer

use of mobile handset broadband services At April 2009 55 per cent of Australian

household consumers aged 18 years and over with a mobile were estimated to

have a 3G mobile phone this increased to 64 per cent in April 2010 Thirty-two per

cent of 3G mobile phone users in the six months to April 2009 accessed the

internet directly via their mobile while in April 2010 this had increased to almost

40 per cent of 3G mobile phone users

Figure 4 Mobile handset broadband take-up

Source ACMA commissioned research Mobile phone capable of accessing 3G services (April 2009 n=1305 April 2010 n= 1468)

Accessed the internet on mobile phone (April 2009 n=793 April 2010 n=1034)

24 Access Economics Economic Contribution of Mobile Telecommunications in Australia June 2010

20 | acma

Online activities undertaken via mobile handset broadband

Survey data shows that consumers are undertaking a range of activities online via

3G mobiles Browsing and accessing information were the main online activities

undertaken via 3G mobiles consistent with the online behaviours undertaken via

traditional devices such as PCs and laptops Other activities such as accessing

content services are also being undertaken by consumers via their mobile handset

Figure 7 presents activities performed by mobile handset broadband users in the

six months to April 2010

Figure 5 Mobile handset broadband activities six months to April 2010

Source ACMA commissioned survey April 2010 n=409 Note figure includes 3G mobile handset broadband users

Despite developments in mobile wireless broadband and the usability of handsets

some activities remain predominantly confined to devices traditionally used to

access the internet such as PCs or laptops For example users of mobile handset

broadband services were less likely to use email over their 3G mobile than internet

users in general (68 per cent compared with 94 per cent respectively)25

25 ACMA commissioned survey April 2010 n=409 and n=1433

acma | 21

Furthermore while the level of internet e-commerce activities over mobile handsets

has increased from 16 per cent to 26 per cent over a 12-month period26 research

by the ACMA shows that take-up of online mobile transaction activities remains

comparatively low when compared with traditional internet access devices (72 per

cent of Australian household internet users used the internet for banking or bill

payment purposes in the six months to April 2010)27

Given the ongoing technological and service innovation occurring in the mobile

broadband market in Australia and internationally it is likely the scope and volume

of activities undertaken online via mobile handsets will continue to grow For

example recent research conducted by the ACMA into mobile payments indicates

awareness and receptiveness to mobile payments and that more advanced forms

of mobile payments are now emerging28

Volume of data downloaded

As the take-up of mobile network broadband increases the level of data traffic will

increase on 3G networks Mobile network broadband will place extra demands on

available spectrum resources as consumers increasingly seek to utilise a growing

range of mobile applications and access internet content services

While wireless broadband has driven growth in the broadband market in Australia

over several years in terms of number of broadband subscribers fixed-line

broadband networks still account for the overwhelming majority of data

downloaded in Australia According to the ABS 91 per cent of data downloaded

from a broadband connection was by fixed internet users in the quarter ending

June 2010 Wireless broadband users (including satellite fixed wireless mobile

wireless and other wireless broadbandmdashexcluding mobile handset users) makes up

only nine per cent of all data downloaded29

26 Nielsen The Australian Internet amp Technology Report February 2010 27 ACMA commissioned survey April 2010 n=409 28 The ACMA Community research into attitudes towards the use of mobile payment services July 2010

Available at httpwwwacmagovauWEBSTANDARDpc=PC_312194 29 ABS 81530ndashInternet Activity Australia June 2010

22 | acma

Figure 6 Volume of data downloaded by internet connection in lsquo000 terabytes


acma | 23

Methodology The analysis and commentary in this report draws on the following information

sources

gt commissioned research in the form of a survey of consumer attitudes and use

of communication services undertaken in April 2010

gt previous ACMA research

gt the Australian Bureau of Statistics

gt industry analyst reports and

gt communications industry information including websites

Commissioned research

The ACMA commissioned Taverner Research to examine consumer usage of and

attitudes towards communication services in Australia

This was a two-phased research program with the first phase conducted in

November 2009 and the second conducted in April 2010 This research report cites

data from the second phase of the research program

Features of the research included

gt CATI telephone interviews which were conducted using the representativeness

modelmdashrandomised nationally representative calling achieved using random

digit dialling (RDD) using lsquomobile user within household with next birthdayrsquo

criterion

gt regional quotas which were applied to achieve representative state and

metropolitannon-metropolitan sample structure

Fieldwork for the second phase was conducted in April 2010 with a final sample of

1626 respondents aged 18 and over

24 | acma

Canberra Purple Building

Melbourne Level 44

Sydney Level 15 Tower 1

Benjamin Offices Melbourne Central Tower Darling Park Chan Street 360 Elizabeth Street 201 Sussex Street Belconnen ACT Melbourne VIC Sydney NSW

PO Box 78 PO Box 13112 PO Box Q500 Belconnen ACT 2616 Law Courts Queen Victoria Building

Melbourne VIC 8010 NSW 1230

T +61 2 6219 5555 T +61 3 9963 6800 T +61 2 9334 7700 F +61 2 6219 5353 F +61 3 9963 6899 1800 226 667

F +61 2 9334 7799

copy Commonwealth of Australia2010 This work is copyright Apart from any use as permitted under the Copyright Act 1968 no part may be reproduced by any process without prior written permission from the Commonwealth Requests and inquiries concerning reproduction and rights should be addressed to the Manager Communications and Publishing Australian Communications and Media Authority PO Box 13112 Law Courts Melbourne Vic 8010

Published by the Australian Communications and Media Authority

Contents

Introduction 1

Summary 3




Methodology 24

acma | iii




broadband market






















broadband





acma | 1





PO Box 13112

Law Courts

Melbourne VIC 8010

2 | acma

Summary





two years

























acma | 3
























4 | acma










in any depth


broadband services













acma | 5



6 | acma




access the internet









population7














acma | 7




(August 2010)8














transmission rate






8 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma

Contents

Introduction 1

Summary 3




Methodology 24

acma | iii




broadband market






















broadband





acma | 1





PO Box 13112

Law Courts

Melbourne VIC 8010

2 | acma

Summary





two years

























acma | 3
























4 | acma










in any depth


broadband services













acma | 5



6 | acma




access the internet









population7














acma | 7




(August 2010)8














transmission rate






8 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma




broadband market






















broadband





acma | 1





PO Box 13112

Law Courts

Melbourne VIC 8010

2 | acma

Summary





two years

























acma | 3
























4 | acma










in any depth


broadband services













acma | 5



6 | acma




access the internet









population7














acma | 7




(August 2010)8














transmission rate






8 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma





PO Box 13112

Law Courts

Melbourne VIC 8010

2 | acma

Summary





two years

























acma | 3
























4 | acma










in any depth


broadband services













acma | 5



6 | acma




access the internet









population7














acma | 7




(August 2010)8














transmission rate






8 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma

Summary





two years

























acma | 3
























4 | acma










in any depth


broadband services













acma | 5



6 | acma




access the internet









population7














acma | 7




(August 2010)8














transmission rate






8 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma
























4 | acma










in any depth


broadband services













acma | 5



6 | acma




access the internet









population7














acma | 7




(August 2010)8














transmission rate






8 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma










in any depth


broadband services













acma | 5



6 | acma




access the internet









population7














acma | 7




(August 2010)8














transmission rate






8 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma



6 | acma




access the internet









population7














acma | 7




(August 2010)8














transmission rate






8 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma




access the internet









population7














acma | 7




(August 2010)8














transmission rate






8 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma




(August 2010)8














transmission rate






8 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma








carrier technology


Optus HSPA Dodo

SoulTPG

iPrimus

People Telecom

Adam Internet

VHA HSPA TransACT

Crazy Johnrsquos

GRL Mobile

iiNet






July 2010


August 2010





devices







acma | 9



























10 | acma





services

acma | 11




























cent12







12 | acma





















Revenue





acma | 13










$437 million


2010







2009





Resellers






3G network17







14 | acma









to their plan


acma | 15




















16 | acma




















acma | 17











do not















internet

18 | acma








Optus 388000 799000 106 per cent

VHA 288000 673000 134 per cent


























acma | 19
















20 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma

















acma | 21




























22 | acma



acma | 23


sources

















criterion





24 | acma




























22 | acma



acma | 23


sources

















criterion





24 | acma



acma | 23


sources

















criterion





24 | acma


sources

















criterion





24 | acma

acma research: mobile network broadband - december 2010

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