Internet subscribers

IBISWorld forecasts the number of internet subscribers to lift by 1.5% during 2024-25, to reach 15.25 million connections. The main drivers of this growth have been the expanding population and household discretionary incomes. Additionally, NBN services have stabilised in recent years, to maintain overall internet usage. This reflects the market saturation from users that decided to replace older internet connection types, like ADSL, with NBN plans earlier in the period. Improved internet connection quality has raised the number of internet subscribers, as faster speeds can better service consumer and business demands. Also, despite internet users consolidating their mobile connections into more streamlined plans, the total number of reported mobile services has risen, particularly among pre-paid service plans.

The recent bump in internet connections highlights a trend among the population, with more Australians downloading more data. This trend is particularly prevalent among high-speed data plans, with the 100Mbps, the third most popular offering, reaching new data download volumes in the current year. Consumers with pre-paid mobile plans are particularly enforcing this trend, as more Australians become accustomed to ongoing access to the internet on the move.

The total number of fixed connections differs depending on its type. Fibre connections are the dominant share of fixed connections, holding steady as non-NBN connections dwindle in recent years. In contrast, mobile wireless connections have seen steady growth on the back of a growing population and heavier reliance on mobile internet connections. Despite these behavioural trends, consumers have consolidated their mobile connections to mobile devices and more heavily rely on home wireless connections for other handheld devices such as tablets. This shift has subdued the number of internet subscribers.

Underlying demand for internet connections has shifted over the past five years. The scope for expansion has been restricted by the high proportion of Australians with existing connections as consumers have increasingly adopted the use of multiple devices. The completed rollout of the NBN has capped any additional ongoing growth. The Australian workforce has become increasingly mobile, with many employees working between multiple offices and sites following the pandemic. As more employees have adopted flexible work practices, demand for mobile connections has climbed. However, workers have slowly filtered back to the office in recent years, lowering the demand for internet connections form the highs of at the beginning of the period. Overall, the number of internet connections is forecast to dip at a compound annual rate of 0.6% over the five years through 2024-25.