Growth in DSL connections stagnates

By Brett Winterford on Sep 14, 2009 5:40 PM
Filed under Telco/ISP

Wireless broadband continues to spike.

More Australians are jumping on board the wireless broadband train, according to statistics released today, while demand for DSL-based connectivity is stagnant.

According to the Australian Bureau of Statistics' twice-yearly Internet Activity Survey, fixed Digital Subscriber Line (DSL) connections - which six months ago represented 63 percent of non dial-up connections in Australia - are now used by 57 percent of broadband subscribers.

In actual terms, DSL connections barely moved at all - with 4,171,000 subscribers estimated in June 2009, down ever so slightly (0.02 per cent) on the 4,176,000 subscribers estimated in December 2008.

Mobile wireless plans continue to attract users - rising from 20 percent of non dial-up connections (1.3 million) in December 2008 to 27 percent (2 million) at the end of June 2009. The ABS noted that this data related only to USB dongles and datacards, not connections via Smartphones - which is only likely to inflate the figures further.

Shadow Communications Minister, Senator Nick Minchin, leaped on the report to decry the Federal Government's build of a fixed fibre network.

"Despite the Government's dismissal of wireless technology as "complementary", the fact is more and more Australians are making an informed decision to substitute fixed line services for wireless services because of the mobility and flexibility they provide," Minchin said.

Minchin made no mention, however, of the requirement for fatter fixed backhaul pipes as more Australians embrace mobile broadband.

The ABS also noted a "general trend towards higher download speeds", with 57 percent of subscribers opting for a download speed of 1.5Mbps or greater, compared with 51 per cent in December 2008.

Is Senator Minchin right? Is the rollout of the NBN in any danger of being cannibalised by the growth of wireless? Comment below...

7 comments in this discussion

"I find my wireless (not helstra) excellent when on the move, but I got it primarily for the (frequent) times that my rubbish 2kilometres of hellstra copper can't hold up the DSl service"

By shanef

Tags

wireless, broadband, dsl, abs, minchin, nbn

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Comments: 7

MerariSchroeder Sep 15, 2009 9:02 AM	We will continue to need fixed line communication, particularly for business premises, schools, hospitals, government, etc.. But Senator Minchin is right about wireless for domestic users. Yes of course we'll need to increase backhaul to cell towers and yes, the industry will need to continue to innovate in order to meet the demand of more customers wanting more data on the move. There is plenty of potential left in wireless technology to meet our needs well into the future.
jab_au Sep 15, 2009 11:33 AM	Personally I think that Wireless and wired complement each other you cannot simply rely on one medium or the other, both have advantages and disadvantages. Both are necessary to meet the different needs & to overcome each others short comings.
Tenoq Sep 15, 2009 1:34 PM	The growth in wireless is most likely due to the two major telcos pushing (or forcing) people onto wireless rather than DSL services. Telstra is pushing wireless strongly because it can remove customers from a regulated network that may eventually be bought by the NBN. Many Telstra sales representatives are lying to create this outcome: many of my customers have explained to me how Telstra told them that "DSL was not available in their area, and they would have to go wireless" when DSL has been in the area for a decade, and is still available. On the other side of the fence, Optus now refuses to re-sell Telstra DSL services - and thus, they will also tell you that if you're not an Optus exchange, you must go wireless (which pretty much covers the 20-30 suburbs in this area). That said, there are still many existing customers making use of Optus DSL services provided by Telstra Wholesale. Regardless of that fact, many people are disappointed with wireless performance. It won't be long before people start realising that wireless broadband is NOT the same as fixed-line broadband, and will never be a viable option for those who want high-bandwidth applications (video conferencing, video downloads, IPTV) nor a viable option for those who want a consistent, and reliable connection for VoIP and other services. The more people using wireless, the poorer it will perform. Hell, even I've got a wireless device hooked up to the Optus network, in addition to DSL - but it is almost completely useless between the hours of 5pm and 9pm. Moreover, Minchin is completely ignoring the fact that an NBN will enable high-speed wireless services that are currently unavailable. You can't have one without the other, Senator.
Bob Oct 14, 2009 12:39 PM	DSL is dinosaur technology. I cancelled my DSL when we moved and got Next G wireless and run the business on it. I can pick up the router and it on the dash of the car even and work 80m away. It's fantastic. Next G is driving the push in business because it opens up possibilities.
Sams Oct 14, 2009 6:13 PM	What does "driving the push in business" actually mean? Personally, I use wireless as a fallback and when I'm on the move.
MickG Oct 14, 2009 8:47 PM	Can any Australian ISP, regardless of size offer wireless or just the select few major telcos?
shanef Oct 15, 2009 10:50 AM	I find my wireless (not helstra) excellent when on the move, but I got it primarily for the (frequent) times that my rubbish 2kilometres of hellstra copper can't hold up the DSl service