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Australian Businesses Are Spending Less on Broadband and More on IP Services, Finds IDC

  • 19 April, 2004 09:40

<p>NORTH SYDNEY, April 19th, 2004 – IDC has released a study today titled “Australian Broadband and IP services Usage and Preferences 2004” which finds that average Enterprise broadband spending has decreased significantly this year, compared to 2003. On average surveyed companies are spending now approximately A$3,500 per month on broadband connections, while in 2003 surveyed companies spent A$7,600 on average per month. Broadband access is becoming a commodity and service providers have to offer value added services to increase their margins and retain customers. This study also finds that Australian businesses are spending more on IP services this year, compared to 2003, and that half of all surveyed companies will increase their spend in the next 12 months.</p>
<p>Technologies like Symmetric High-bit-rate Digital Subscriber Line (SHDSL) / Symmetric Digital Subscriber Line (SDSL) have now rated higher in quality of service satisfaction levels than Integrated Services Digital Network (ISDN) or leased lines. “Broadband service providers have to provide a high standard of service at a competitive price, in order to gain or maintain market share", said Susana Vidal, IDC Telecommunications Analyst.</p>
<p>IDC believes Australian broadband and IP service providers should focus on the following activities to capitalise on the opportunities presented by business users:</p>
<p>* Compete in pricing for broadband access, while maintaining high quality of service/network and customer service and upsell IP services;
* Provide innovative IP services targeted at different vertical markets, educate companies not only on the cost saving advantages of these technologies, but on the potential productivity gains;
* Present case studies/best practices to your prospect customers that could really demonstrate these productivity increases and/or cost savings; and
* Educate companies on the benefits of business grade DSL technologies like SHDSL/SDSL, Very-high-bit-rate Digital Subscriber Line (VDSL), and other DSL.</p>
<p>"xDSL adoption reached almost three quarters of Australian businesses with 73.7% of the survey respondents* in 2004, has increased from 49.5% in 2003. The highest adoption is coming from the small and medium business segments.</p>
<p>"Telstra has the highest market share in broadband business services with 51.9%, followed by Optus with 11.2%, and third iiNet/iHug with 3.1%, the rest of broadband service providers share the 33.8% remaining market", added Ms. Vidal.</p>
<p>This study titled “Australian Broadband and IP services Usage and Preferences 2004” is based on the results of IDC's Enterprise Telecommunications Survey, an annual end-user survey of telecommunications technology usage and trends in Australian businesses. Interviews were conducted in February 2004 with decision makers from 258 companies of all sizes and vertical industries.</p>
<p>*N = 258 companies</p>
<p>For press enquries please contact:
Susana Vidal
Analyst, Communications
Phone: 61 2 9925 2223</p>

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