Broadband 'a switcher's market'

Broadband in Australia is a 'switcher's market' according to iiNet, with most new customers coming from other Internet Service Providers (ISPs).

iiNet, Australia's second largest broadband provider, said figures from the NBN Co show market growth for broadband in Australia is slowing, as most people who can now have a fixed-line internet connection.

New sales are coming almost entirely from customers leaving other ISPs, which means broadband providers will have to offer a better customer experience and more innovative products to compete, according to iiNet.

iiNet managing director, Michael Malone, said: "We have been preparing for this growing maturity in the broadband market by building scale and diversifying into fresh territory, like Fetch TV, mobile voice, Netphone, and a new suite of innovative consumer products from our iiNet Labs, to ensure our long term growth."

Smaller ISPs are already being pushed out the market, iiNet said. In June 2009, there was around 500 ISPs operating in Australia but by December 2009, there were only around 300.

The four largest providers – Telstra, iiNet, Optus and TPG - now account for 83% of the fixed broadband market in Australia.

The National Broadband Network (NBN) will shake up the broadband market in Australia, opening up competition to more areas and driving down prices, iiNet predicts. But ISPs will have to be ready for the change.

"Perhaps half of the premises in Australia have been denied access to true broadband competition, but the NBN changes all that," Mr Malone added.

"Not only do we double the available market for our services, but the proposed NBN pricing looks attractive for both iiNet and our customers."

Broadband users can check their current deal against new deals from all the major ISPs on Compare Broadband.