Information and communications infrastructure
Australia’s extensive and advanced telecommunications infrastructure is well placed to meet the needs of modern businesses. The liberalisation of the industry in 1997 fundamentally changed the industry, bringing in competition, extensive investment in new technology infrastructure and enhanced services. The new regime removed limits on the number of carriers, prior to 1 July 1997 there were just two national carriers, Telstra and Optus, today there are over 160 licensed carriers operating in Australia1. Healthy competition has in turn has driven prices down for long distance and international calls, mobile services and broadband Internet access2.
Australia has the 5th largest ICT market in Asia Pacific and the 12th largest in the world3. The Australian Telecommunication Services sector posted revenue of $35 billion in 2005-06. Revenue between wired and mobile telecommunications is mostly even, however, revenue growth is the fastest in the sub-sectors of mobiles and Internet4.
Australia is well connected internationally by fibre-optic cables and satellites with high potential transmission capacity provided by multiple access points to the national and international network.
With a modern optical fibre backbone, an extensive mobile network and complete satellite coverage, Australia offers high bandwidth telecommunications service.
Backbone and broadband access
A large landmass and dispersed population have made the domestic telecommunications network a high priority for Australian governments and industry.
Years of development have produced a highly sophisticated telecommunications infrastructure and ongoing investment continues to increase bandwidth and the capacity to support new applications. Future investments may include a possible Fibre to the Node (FTTN) network by players in the industry.
Considerable investment in backbone infrastructure has added to the bandwidth capacity between major routes. Australia's inter-capital and metropolitan fibre optic transmission network traverse 44,645km and 135,556km respectively equivalent to circling the Earth 4.5 times5. The fibre backbone is supported by a comprehensive carrier-operated microwave network consisting of 25,289 transmitters and base stations6.
Broadband has been eagerly adopted by business and consumers in Australia7. Over 90 per cent of Australian households and small businesses are able to access fast broadband services at speeds of between 2 and 8Mbps with a choice of 19 Internet service providers8.
Wireless
Australians have embraced mobile communications enthusiastically with state-of-the-art network coverage available for over 98 per cent of the population9. As of June 2006, up to 19.86 million or 96 per cent of Australian's owned a mobile phone10.
High demand for wireless services has driven the industry to develop an advanced and competitive wireless infrastructure. Wireless services are now estimated at just over 3.8 per cent or 139,500 subscribers as at 30 September 200611.
Wireless users are served by six terrestrial mobile networks; three GSM networks operated by Optus, Telstra and Vodafone; and two W-CDMA 3G networks operated by Telstra and Hutchison and four 3G HDSPA networks operated by Telstra, Optus, Hutchison and Vodafone12.
The number of connections for mobile services has exceeded fixed lines connections since 2000. Satellite technology is used as an alternative to terrestrial and mobile networks in remote areas of Australia13.
New technologies are playing a key role in expanding coverage in Australia. In February 2007, Telstra and Ericsson announced the installation of new technology that combines high transmission speeds and allows base stations to be spaced further apart. The new 3G HDSPA cells offer a download speed of up to 2.3Mbps up to 200km from the base station, increasing to speeds of up to 14.4Mbps closer to the transmitter14.
Satellite coverage
As well as providing backbone and customer access networks, particularly for rural and remote Australia, the satellite network provides additional bandwidth to connect Australia to international destinations. Satellite broadband services provide 100 per cent coverage of Australia’s land area. In April 2007, there were around 41 satellite broadband service providers operating in Australia, with most of these service providers being regional ISPs that resell satellite broadband to regional, rural and remote customers15.
Satellite coverage of the Australian continent is provided by Orbcomm, Iridium, New ICO, Globalstar, Inmarsat, Intelsat who acquired PanAmSat in mid 2006, SES Global, NewSat, Optus, and iPStar. Satellite communications service revenues (excluding mobile telephones) exceeded $260 million in the 2005-06 year16. As of 30 Sep 2006 there were 42,400 consumer satellite broadband Internet customers17. Turnover from Optus satellite operations included consumer Internet, television and business customers and totalled $227 million at year ended 31 March 200618.
Australia uses 2G and 3G mobile phone access throughout metropolitan and regional Australia. Satellite phones are used in remote Australia using local carriers Telstra and Vodafone and satellite operators including GlobalStar, New ICO and Inmarsat.
1 Australian Telecommunications User Group, Media Release, 10 Years of Competition, 15 June 2007.
2 IBISWORLD, Communication Services in Australia, 28 February 2007, p. 46.
3 Digital Planet 2006, The Global Information Economy, 2006.
4 IBIS World, Communication Services in Australia, p. 7, 28 February 2007.
5 Australian Competition and Consumer Commission, Telecommunications Infrastructure in Australia 2004, p. 42.
6 Australian Competition and Consumer Commission, Telecommunications Infrastructure in Australia 2004, p. 45.
7 AT Kearney’ The State of Broadband in Australia 2002.
8 DCITA, Broadband Blueprint, estimates as at 1 December 2006 www.dcita.gov.au/broadband_blueprint as at 14 March, 2007.
9 Australian Communications Media Authority, Telecommunications Performance Report 2004-05, p. 3.
10 IBISWorld, Mobile Telecommunications Carriers in Australia, 12 January 2007.
11 Australian Communications and Media Authority (ACCC), Snapshot of Broadband Development, As at 30 September, 2006, pp. 2.
12 IBISWorld, Mobile Telecommunications Carriers in Australia, 12 January 2007, p. 34.
13 Department of Communications, Information Technology and the Arts, Overview of Mobile Telephone Services, www.dcita.gov.au
14 Ericsson, Media Release, Ericsson and Telstra achieve world first 200 km cell range in nationwide network with up to 14.4 Mbps, 12 February, 2007. www.ericsson.com/ericsson/press/releases/20070212-1104433.shtml , Accessed as at 14 March, 2007.
15 Australian Communications and Media Authority, Communications Infrastructure and Services Availability in Australia 2006–07, p. 10.
16 IBISWorld, Other Telecommunication Services in Australia, 30 October 2006, p. 10.
17 Australian Communications and Media Authority (ACCC), Snapshot of Broadband Development, As at 30 September, 2006, p. 2.
18 IBISWorld, Other Telecommunication Services in Australia, 30 October 2006, p. 29. |