Smaller ISPs gain ground in Australia’s NBN wholesale market

ACCC smaller broadband NBN relief fund
Image credit: NBN Co

CommsUpdate: According to the latest ‘NBN Wholesale Market Indicators Report’ published by the Australian Competition and Consumer Commission (ACCC), the nation’s smaller broadband providers continued to increase their market share in the National Broadband Network (NBN) wholesale market in the  most recent quarter.

In the three-month period ended 30 June 2022 smaller retail service providers were reported to have continued a ‘steady’ increase in their combined market share, which reached 12.6%, up from 8.2% a year earlier.

Growth for the smaller operators was led by Aussie Broadband, which the ACCC said accounted for 6.4% of the NBN wholesale market at mid-2022.

Such increases were achieved at the expense of the nation’s top four providers – Telstra, Optus, TPG and Vocus – all of which saw marginal declines in their shares.

Even so, Telstra remains the leader in market share, accounting for 43.3% of the NBN wholesale access seeker market at mid-2022 (June 2021: 44.8%).

Meanwhile, the report also showed that broadband providers had expanded their presence at NBN’s 121 Points of Interconnection (POIs) – the physical locations where providers can connect to the NBN.

In the June quarter there were said to be at least 17 providers directly acquiring NBN services at all 121 of the POIs, according to the ACCC, compared to 13 providers in the March quarter.

Growth of smaller ISPs boosts competition

Finally, the ACCC’s report said that there were just over 8.7 million residential broadband services connected via the NBN at mid-2022, of which three-quarters were on plans offering a downlink speed of at least 50 Mbps.

“The growth of smaller providers is increasing the competitive tension in broadband markets, and many Australians will see the benefit of that,” said ACCC Commissioner Anna Brakey in a statement. “Consumers have a wide range of choice for their broadband retailer, which enables them to choose the product that best suits them.”

Related article: ACCC launches consultation on NBN Co’s proposed SAU changes

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