More than half (55%) of all Australian businesses with a fixed Internet connection have it with Telstra, according to the latest Roy Morgan Business Telecommunications Survey to July 2013. While the fixed Internet services market is more competitive than either the fixed phone line or the mobile phone market (where Telstra has 70.9% and 63% customer penetration respectively), Telstra still has a much larger market presence than the next largest provider, Optus with 12% customer penetration.
While Telstra is dominant in fixed Internet across most Industries, there are signs of increasing competition in certain areas, such as the Professional Services industry, where Telstra has slightly less than 50% customer penetration (49%). The second tier players in this market such as Optus (13%), iiNet (12%) and TPG (9%) achieve higher penetration here than they do in other large industries such as Construction and Retail Trade.
Source:Roy Morgan Research Business Survey, July 2012 – June 2013, Businesses with Fixed Internet Services; sample n = 8994; Professional Services (ANZSIC Division M) n = 1449; Construction (ANZSIC Division E) n = 780; Retail Trade (ANZSIC Division G) n = 1059. Question: "What telecommunications/Internet services does <provider> provide to the business?" (‘Fixed internet’; includes: Dial-up, ISDN, Satellite broadband, ADSL/DSL broadband, Cable broadband, Wireless modem/gateway, Other Fixed Internet service).
Nigel Smith, Director of Business Research, Roy Morgan Research, says:
“While Telstra’s penetration of the fixed Internet market over time appears to be stable, or even slightly increasing since 2011, there are signs of smaller players making inroads in some industries.
“In the Professional Services industry iiNet in particular seems to be growing rapidly, while in the Construction industry Optus has been increasing its presence. In the Retail industry TPG has also increased its business customer penetration over the last two years. The coming of the NBN over the next few years may potentially increase this trend towards business market competition for fixed Internet services.”
Roy Morgan - B2B
Australia’s leading B2B market research These findings are from the Roy Morgan Business Single Source survey, the most comprehensive B2B research in Australia which interviews over 30,000 business decision makers p.a. The research covers business confidence, telecommunications, banking & finance and business media use which can be analysed by number of employees, annual turnover, head office and operating locations, sources of revenue and financial performance and expectations. Ready Made Research reports include Business Confidence and Business Banking Satisfaction.
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