Australia: Cheap, fast NBN attracts broadband switchers

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Research conducted by Roy Morgan among ‘decision makers’ – those who are considered the decision makers in their households when it comes to technology, shows clearly that NBN ‘switching’ is being increasingly driven by cheaper rates although faster data connection/ download speeds and clear pricing of the plan are also important considerations.

An analysis of the reasons provided by decision makers shows that those switching to a new NBN service provider demonstrate clearly different preferences and priorities to the average Australian fixed broadband user who may have an ADSL, Cable or NBN fixed broadband connection and who may have made their choice of service provider some time ago.

15 per cent of households who now have an NBN connection at home either switched to the NBN, or switched their NBN fixed broadband service provider, in the last 12 months. A majority of 53.7 per cent of decision makers switching to a new NBN service provider in the last 12 months cited ‘cheaper rates’ as the reason for choosing the new plan in the six months to September – almost double the rate of a year ago (26.9 per cent) and far higher than existing fixed broadband users (28.9 per cent).

Australian fixed broadband decision makers making the switch to a new NBN Service Provider in the last year were also far more likely than a year ago to mention faster data connection/ download speeds (31.6 per cent cf. 17.8 per cent) and clear pricing of the plan (29.5 per cent cf. 22.3 per cent).

The considerable changes seen for decision makers choosing a new NBN Service Provider over the past year haven’t been reflected in the wider fixed broadband market with little change year-on-year in the reasons cited for why the average Australian fixed broadband decision maker chose their current provider.

Decision makers that switched to an ADSL or Cable fixed broadband service provider were just as likely as those that selected an NBN provider to choose based on faster connection and download speeds (30.5 per cent cf. 31.6 per cent for NBN) although clearly less likely to nominate cheaper rates (38.8 per cent cf. 53.7 per cent for NBN) or clear pricing of the plan (24.2 per cent cf. 29.5 per cent for NBN).

Michele Levine, CEO, Roy Morgan, commeted:  “Australians choosing a new NBN service provider are increasingly making the switch based on cheaper rates, faster data connection/ download speeds and clear pricing of the plan – all 3 key reasons have increased in importance for those making the switch over the past year. Cheaper rates have always been an important reason for those looking to choose an ISP however in the past year the increased competition for NBN Service providers including the recent entry of Vodafone and Amaysim offering price-competitive packages, and also the increasing number of smaller providers, has created an extremely competitive marketplace with price used as a key headline differentiator for different NBN Service providers.”

“The growing importance of faster data connection and download speed as a reason is likely due to a couple of factors which begins with the increasing prevalence of music/video streaming making ‘the need for speed’ more important than ever to avoid streaming issues, which have come up in the news.,” she added.


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