Mobile network broadband. December 2010

Transcription

1 Mobile network broadband December 2010

2 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 PO Box Q500 Belconnen ACT 2616 Law Courts Queen Victoria Building Melbourne VIC 8010 NSW 1230 T T T F F F 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 Law Courts, Melbourne Vic Published by the Australian Communications and Media Authority

3 Contents Introduction Summary What is mobile network broadband? Developments in the Australian mobile network broadband market Take-up of mobile network broadband Methodology acma iii

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5 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 The ACMA undertakes research into Australians 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 consumers 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 refer Methodology. 1 acma 1

6 Any comments on this report are welcomed and can be sent to or to the address below. Manager, Communications Analysis Section Australian Communications and Media Authority PO Box Law Courts Melbourne VIC acma

7 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 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 service. 3 2 This figure excludes mobile handset broadband access. 3 ABS, Internet Activity, Australia, June 2010 acma 3

8 Consumer data relating to mobile network broadband usage was collected by the ACMA in April 2009 and again in April 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 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 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

9 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: > mobile wireless broadband, which refers to broadband accessed via a laptop or PC via a USB modem, USB dongle, data card or a tablet > 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 technology. 4 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: > USB dongles, modems or sticks which plug into the USB connection on a laptop, PC or mobile router > mobile data cards, which plug into a PC card slot > laptops with integrated modems > tablet devices such as the Apple ipad > mobile handsets acting as a modem for a laptop or PC > 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 modem s 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

10 Figure 1 Examples of USB modems or sticks, dongles and data cards supplied in Australia USB modems USB dongle Data card 6 acma

11 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 Australia Telstra, Optus and Vodafone Hutchison Australia (VHA) (which operates the Vodafone and 3 brands) operate the high-speed packet access (HSPA) protocol. Telstra s 3G network is claimed to provide coverage to 99 per cent of the Australian population. 5 Optus 3G network is claimed to provide coverage to 97 per cent of the Australian population, with plans to extend to 98 per cent. 6 VHA is claimed to provide coverage to between 92 and 95 per cent of the Australian population. 7 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 SingTel, Q4 and Full Year Financial Results 2009/2010, Management Discussions and Analysis, May Vodafone coverage maps, available at acma 7

12 together to improve spectral efficiency resulting in improved data rates and capacity. Further detailed information on mobile wireless technologies can be found in the ACMA s 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 3.6 Mbit/s up to 42 Mbit/s 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 acma

13 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 Network owner Technology used Examples of resellers* Telstra HSPA+ with dual Currently no known resellers carrier technology Optus HSPA Dodo Soul/TPG iprimus People Telecom Adam Internet VHA HSPA TransACT Crazy John s GRL Mobile iinet * This list does not include all Optus and VHA resellers. Source: Publicly available data from company websites and reports. Telstra: accessed 30 August Optus: accessed 29 July VHA: 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 smartphones mobile 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

14 operating system. Apple s 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 ipad. 9 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 200,000 apps were available for use with its devices. 10 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 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: acma

15 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 & Technology Report, February Note: question did not include the use of voice services. acma 11

16 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 shaping of data speeds (the reduction of data rates when the download quota for the plan s 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 increased. 11 The Internet Industry Association s Broadband Index found the cost of a one Mbit/s (or faster) mobile wireless broadband service providing a data quota of five gigabytes per month has declined from $49.75 per month to $39 per month for the six months between 30 March 2009 and 30 September 2009, a fall of 22 per cent. 12 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 Consulting/IIA Broadband Index, Ninth Edition (Q3 2009), November 2009, 12 Internet Industry Association, Venture Consulting/IIA Broadband Index, Ninth Edition (Q3 2009), November 2009, 12 acma

17 plan is offered two gigabytes per month at a unit cost of $14.50 per gigabyte, while a customer on a $49 pre-paid plan is offered four gigabytes per month at a unit cost of $12.25 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 option. 13 Alternatively, consumers may opt to pay for data on an as-you-go 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 as-you-go 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 acma 13

18 Table 2 Mobile network operator revenue Network owner Time period Revenue from mobile data services Telstra 14 1 July 2009 to 30 Jun 2010 Mobile data revenue was $2,470 million, up from $1,934 million. Of this revenue: > mobile wireless broadband (data card) revenue grew by 34.1 per cent to $787 million > mobile handset broadband (non-messaging) revenue was $317 million, up from $263 million > messaging revenue was $499 million, up from $437 million. Optus Mar 2009 to 31 Mar 2010 Of the $1,184 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 8.5 per cent the previous year. This includes revenue from premium SMS services. VHA Dec 2008 to 31 Dec 2009 Non-voice revenue increased by 45.9 per cent to $677.3 million. Non-voice services contributed 36.7 per cent of VHA s service revenue. Source: Publicly available data from company websites and reports. 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 network. 17 Examples of resellers that sell mobile wireless broadband services over the Optus network include Dodo, TPG, iprimus, People Telecom and Adam Internet, while 14 Telstra Full Year Financial Results 2010, available at 15 SingTel Group Q4 financial results 2010, available at 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 17 IDC, Australian Mobile Broadband 2008 Competitive Analysis: Opening the Floodgates, January acma

19 TransACT, Crazy John s, iinet and GRL Mobile offer mobile wireless broadband packages using the VHA network. 18 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 customers 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

20 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 takeup 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 8.77 million non-dial-up internet subscribers in Australia, of which million were mobile wireless broadband subscribers. 19 This is an increase of 22 per cent from million in December 2009 or 71 per cent over the year from June 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, Internet Activity, Australia, June ABS, Internet Activity, Australia, June acma

21 Figure 3 Number of non-dial-up internet subscribers by technology type Source: ABS, Internet Activity Survey, June 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. A complementary service is when a customer maintains communications services but adds service/s that provide additional flexibility. There are a number of factors which demonstrate the complementary nature of mobile wireless broadband to fixed broadband connections: > 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 allowance these 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

22 and payment options for mobile wireless broadband have increased its attractiveness for consumers > Mobile wireless broadband services generally provide smaller download quotas than fixed broadband services this 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 > 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: > 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, e.g. by taking up a naked DSL service); > the mobility of mobile network broadband, in terms of not requiring disconnection and reconnection processes, fees and delays; > the requirement for a single broadband connection only; > the complexity and required data rate being comparatively low, and > a consumer may only have one device with which to access broadband internet. 18 acma

23 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 828,000 1,325, per cent Optus 388, , per cent VHA 288, , per cent Source: Publicly available data from company websites and reports. 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 , there were approximately million 3G mobile handset services in operation (SIO) in Australia compared with 8.55 million at June 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 3.61 million 3G SIO, an increase of nearly 7.8 per cent from December 2009, while Telstra reported 7.25 million 3G SIO, an increase of 14.6 per cent since June 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 VHA s annual report at 31 December 2009, VHA had 717,000 3G SIO that were either a mobile handset or a handset used as a modem to access the internet 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 Optus: SingTel Financial results presentation Q4 FY09/10: Year ending 31 March VHA: 2009 Annual Report.Telstra: 2009/10 Half Year Financial Results. In its 2010 Full Year Financial Results, Telstra did not split 3G and non-3g SIO. acma 19

24 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 period. 24 The ACMA s 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 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=1,305; April 2010: n= 1,468). Accessed the internet on mobile phone (April 2009: n=793; April 2010: n=1,034). 24 Access Economics, Economic Contribution of Mobile Telecommunications in Australia, June acma

25 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 Figure 5 Mobile handset broadband activities, six months to April 2010 Source: ACMA commissioned survey, April 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 over their 3G mobile than internet users in general (68 per cent compared with 94 per cent respectively) ACMA commissioned survey, April n=409 and n=1,433. acma 21

26 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 period 26, 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 emerging. 28. 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 Wireless broadband users (including satellite, fixed wireless, mobile wireless and other wireless broadband excluding mobile handset users) makes up only nine per cent of all data downloaded Nielsen, The Australian Internet & Technology Report, February ACMA commissioned survey, April n= The ACMA, Community research into attitudes towards the use of mobile payment services, July Available at 29 ABS, Internet Activity, Australia, June acma

27 Figure 6 Volume of data downloaded by internet connection, in 000 terabytes Source: ABS, Internet Activity Survey, June acma 23

28 Methodology The analysis and commentary in this report draws on the following information sources: > commissioned research in the form of a survey of consumer attitudes and use of communication services, undertaken in April 2010 > previous ACMA research > the Australian Bureau of Statistics > industry analyst reports, and > 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 This research report cites data from the second phase of the research program. Features of the research included: > CATI telephone interviews, which were conducted using the representativeness model randomised, nationally representative calling achieved using random digit dialling (RDD), using mobile user within household with next birthday criterion > regional quotas, which were applied to achieve representative state and metropolitan/non-metropolitan sample structure. Fieldwork for the second phase was conducted in April 2010 with a final sample of 1,626 respondents aged 18 and over. 24 acma