Chapter 1 The Aus Communications and Media Market

Chapter 1
The Australian communications

and media market
Overview
Chapter 1 provides an overview of the communications and media market in Australia. This includes
what kinds of services are available, how consumers use these services, carrier licensing and
number allocation. This chapter also includes a summary of media ownership in Australia and of
changing patterns in advertising expenditure. It also discusses how convergence and the emerging
digital economy are challenging traditional services and changing consumer preferences.
During 201011:
>> the number of fixed-line voice services and call volumes continued to decline, despite industry
efforts to address changing consumer preferences through new service offerings and bundling
>> the use of voice over internet protocol (VoIP) grew, with significant numbers of consumers
using VoIP over mobile phone handsets
>> there was net growth in mobile phone services as well as existing mobile phone users
upgrading to smartphones, on the back of greater adoption of mobile internet services
>> internet services via mobile networks continued to underpin growth in the internet subscriber
numbers, while fixed networks dominated internet data downloads
>> mobile numbers were increasingly used for devices with wireless internet connectivity and for
machine-to-machine communication
>> communication service providers focused more on service bundling and discounting to retain
market share at the expense of profit margins
>> there was significant progress in the development of the National Broadband Network (NBN)
>> choice in broadcasting content expanded due to developments for IPTV and video on
demand, and more subscription television licences and digital television services
>> advertising expenditure on online media channels increased, as did the number of Australians
accessing broadcasting content online.
Table 1.1 Key industry statistics

Fixed-line telephone services in operation
Jun-10
Jun-11
% change
10.59 m
10.54 m
0.5%
People without a home fixed-line telephone service
2.3 m
2.7 m
+17%
Home VoIP users
2.9 m
3.8 m
+31%
0.084 m
0.274 m
+226%
14.9 m
15.8 m
+6%
25.99 m
29.28 m
+13%
Mobile wireless broadband subscribers*
3.45 m
4.79 m
+39%
Mobile phone handset internet subscribers
6.78 m
9.68 m
+43%
15.76 m
14.81 m
6%
Total number of internet subscribers
9.5 m
10.9 m
+15%
Total number of broadband internet subscribers
8.7 m
10.3 m
+18%
Mobile telephone VoIP users

Household consumers with a mobile telephone
Mobile data and voice services in operation
Mobile phone handset services without an internet

subscription
Volume of SMS and MMS messages sent
29.4 b
36.3 b
+23%
Pay TV subscribers (households)
2.38 m
2.41 m
+1%
Australians with a home internet connection
13.8 m
14.6 m
+6%
Australians with a broadband at home
11.8 m
12.7 m
+8%
Australians going online
13.0 m
13.5 m
+4%
Australians going online at least once a day
8.9 m
10.0 m
+12%
Australians going online via their mobile phone handset
2.4 m
3.9 m
+63%
Pages of web content viewed at home
18.5 b
19.2 b
+4%
Australians streaming radio online
0.7 m
0.9 m
+29%
Australians streaming TV online
0.6 m
1.1 m
+83%
Australians downloading TV programs
0.8 m
1.0 m
+25%
Quarter ending
June 2010
Quarter ending
June 2011
% change
16.1 GB
25.1 GB
+56%
fixed-line broadband#
141,892 TB
254,947 TB
+80%
wireless broadband#
13,330 TB
19,149 TB
+44%
155,503 TB
274,202 TB
+76%
Jun-10
Jun-11
% change
1.48 m
1.07 m
28%
177
191
+8%
3%
Average volume of data downloaded per subscriber

Volume of data downloaded
Total volume of data downloaded from the internet
Geographic number allocations

Licensing
Telecommunications carrier licences
Commercial television broadcasting licences
Commercial radio broadcasting licences
Subscription television licences
Community television broadcasting licensees
Community radio broadcasting licensees
71
69
273
273
nil
2,700
2,759
+2%
81
81
nil
356
356
nil
ACMA Communications report 201011 | 31
m=million.
b=billion.
TB=terabytes (1,000 GB).
GB=gigabytes (one million bytes).
*Refers to services offered via a datacard or dongle. Excludes mobile phone handset internet subscribers.
Excludes mobile phone handset internet subscribers.
Online activities undertaken during month of June, Australians aged 14 years and over.
Month of June.
Includes mobile phone handset internet subscribers.
#Includes satellite, fixed wireless, mobile wireless via a datacard, dongle or USB modem and other wireless
broadband. Excludes subscriptions via mobile handsets.
Note: Number of services in operation and internet subscribers includes household, business and government
sectors.
Telecommunications industry
Industry revenues
Over recent years, the strong shift from fixed to mobile telecommunications services has been
reflected in the changing share of Australian telecommunications industry revenue (Figure 1.1).
During this period, the fixed telecommunications sectors share of total industry revenue has
declined from 41 per cent during 200506 to 28 per cent for 201011. In contrast, the mobile
telecommunications sector now accounts for the single largest share of the total industry revenue,
having increased from 36 per cent during 200506 to 50 per cent during 201011.
F i g u r e 1 .1 C h a n g e i n th e s h a r e o f A u s tr a l i a n te l e co m m u n i ca ti o n s i n d u s tr y * r e v e n u e , 2 0 0 5
Figure 1.1 Change in the share of Australian telecommunications industry* revenue,
0 6 to 2 0 1 0 1 1
200506 to 201011
% share of telecommunication industry revenues
100
80
Fixed
telecommunications
36
38
41
33
30
28
Mobile
telecommunications
Internet service
providers
Telecommunications
resellers
60
40
41
44
47
50
38
13
14
15
15
15
15
10
200506
200607
200708
200809
200910
201011
36
20
*Figures shown for Telecommunications industry do not include some minor products and services such as satellite
TV and radio relay.
Source: IBISWorld telecommunications industry reports, May 2011.
F i g u r e 1 . 2 C o m p o s i t i o n o f T e l s t r a s p r o d u c t r e v e n u e , b y f i n a n c i a l y e a r
35
% of product revenue
30
25
200910
33
201011
29
24
21
20
32 | Chapter 1 The Australian communications and media market

15
14
Communication service availability

Fixed-line voice service availability
At June 2011, there were 287 fixed-line telephone service providers operating in Australia.
Of these, 179 offered services over the public switched telecommunications network (PSTN)
and 176 operated in the VoIP market. This includes service providers and resellers.1
Fixed-line services in operation
The number of fixed-line services in operation in Australia continued to decline in the 12 months
to June 2011. There were approximately 10.54 million fixed-line telephone services in operation
in Australia at June 2011, compared with 10.59 million at June 2010 and 10.67 million at
June 2009 (Table 1.2). The decrease in fixed-line telephone services during 201011 was
approximately 0.5 per cent overall, compared to the 0.7 per cent decline recorded during the
200910 reporting period.
Telstra reported a continuation of the decline in its fixed-line residential telephone service market
segment during 201011 (Table 1.2), with the number of home (retail) PSTN services declining
by nearly seven per cent. The number of Telstra wholesale fixed-line services also declined in
201011, falling by three per cent, but business (retail) services increased by five per cent. Overall,
the number of Telstra fixed-line services fell by three per cent for the year, compared to four per
cent the year before.
The continued decline in this segment of the voice service market is demonstrated further by
Telstras PSTN revenue, which fell by four per cent, or $480 million, in the 12 months to June
2011.2 The decline in PSTN revenue also reflects decreases in call volumes, with a 14 per cent
fall in the number of local calls and a nine per cent fall in national long-distance minutes over
this period.3
A comparison of Telstras sources of product revenue over the last two financial years is provided
in Figure 1.2. Consistent with general market trends in Australia, Telstras revenue from mobile
networks continued to increase, now accounting for a third of its total product revenue. As is
evident for all mobile carriers in Australia, the growth in mobile service revenues was underpinned
by the adoption of mobile wireless broadband and an increase in mobile voice minutes and
texting (SMS and MMS).
Telstra reports in its 201011 financial results that mobile voice minutes increased by just over
17 per cent and the number of SMS sent by five per cent in the 12 months to June 2011. During
the same period, Telstras mobile wireless broadband subscriber base increased by 55 per cent
to reach 2.6 million services in operation at June 2011. Growth in mobile service numbers and
activity volumes has been a result of heavy discounting to expand market share, with average
revenue per user (ARPU) declining for key mobile customers segments. For example, ARPU for
Telstras mobile broadband customers decreased by 24 per cent in the 12 months to June 2011,
from $50.41 at June 2010 to $38.30 at June 2011.4
While most traditional fixed-line revenues, such as those from the PSTN, have recorded either little
or no growth, the exception has been Telstras revenue from fixed-line broadband services, which
has grown as a proportion of total revenue by two percentage points to eight per cent.
0 6 to 2 0 1 0 1 1
100
Fixed
telecommunications
Mobile
Table 1.2 Number of fixed-line telephone services in operation
28
% share of telecommunication industry revenues
All carriage
service
80
41
providers
33
36
Jun-08
38
Jun-09
telecommunications
30
Jun-10 Internet service

Jun-11
% change from
Jun-10 to Jun-11
+0.3%
providers
Retail (own network)
9.40 m
9.17 m
9.12 m Telecommunications
9.15 m
Wholesale
1.60 m
1.50 m
1.47 m
1.39 m
5.4%
11.00 m
10.67 m
10.59 m
10.54 m
0.5%
Jun-11
% change from
Jun-10 to Jun-11
60
Total
44
41
38
Telstra
36
40services
only
Jun-08
resellers
50
47
Jun-09
Jun-10
Residential (retail)
5.56 m
5.46 m
5.20 m
4.84 m
6.9%
Business (retail)
2.31 m
2.27 m
2.21 m
2.32 m
+5.0%
15
1.25 m
1.21 m
3.2%
8.66 m
8.37 m
3.3%
20
Wholesale
13
14
10
1.5015m
Total
15 1.29 m 15
9.36 m
9.02 m
m=million.
0
Source: The200506
ACMA annual
industry200708
data request.
200607
200809
200910
201011
product
F i g Figure
u r e 1 . 2 1.2
C o mComposition
p o s i t i o n o f T eof
l s tTelstras
r a s p r o d u
c t r e v e nrevenue,
u e , b y f i n by
a n cfinancial
ia l ye a r
35
% of product revenue
30
200910
33
year
201011
29
24
25
21
20
14
15
13
11
9
10
8
6
5
0
Mobile
services
Public switched
telephone
network (PSTN)
Sensis*
Other fixed
Fixed-line
broadband
IP and data
Other
*Expressed as media in Telstra 201011 financial results.

Sources: Telstra, Full Year 200910 Financial ResultsCEO/CFO analyst briefing presentation, August 2010; Telstra,
Full Year 201011 Financial ResultsCEO/CFO analyst briefing presentation, August 2011.
Optus has also witnessed growth in its mobile services revenue, with earnings increasing by
market5, this
rate of increase has slowed because of industry competition, with Optus also implementing
service discounting.6 During the June quarter of 2011, revenue from mobile services accounted
for approximately 65 per cent of total Optus revenue, comparedTelstra
to 63 per cent during the June
Optus and
other
quarter of 2010. Reflecting the increasing focus on data and content
services
within the mobile
communications sector, mobile data revenues accounted for 45 per cent of Optuss total mobile
services revenue during the June quarter 2011, up from 40 per cent from the June quarter of
2010. However, Optuss monthly ARPU for its mobile service customers declined by four per cent
in the June quarter of 2011 in comparison to the June quarter of 2010.7
F i gfive
u r eper
1 cent
. 3 F in
i x ethe
d - 12
l i n months
e t e l e pto
h oJune
n e s2011.
e r v i cHowever,
e m a r k eint as highly
h a r e , competitive
A u s tra lia
82%
79%
11
9
10
For Vodafone Hutchison Australia (VHA), network and customer service issues in late 2010 may
have0been a driver of a decrease in revenue of 3.5 per cent year-on-year to $1,137.6 million
Sensis* VHA
Other
fixedexperienced
Fixed-line a slight
IP and data
MobileOver
Public
at June 2011.
the switched
last 12 months,
also
decline Other
in ARPU. VHA
broadband
telephone
attributes services
the ARPU
decline
to pressure from competitive
pricing and increased credits during
network
(PSTN)
early 2011.8
Figure 1.3 provides an overview of the market share of the fixed-line telephone service providers
in Australia at June 2011. On the basis of reported figures, Telstras share of the number of fixedline telephone services in operation declined from 82 per cent at June 2010 to 79 per cent.
F ig u re 1 .3 F ix e d -lin e te le p h o n e s e rv ic e m a rk e t s h a re , A u s tra lia
Figure 1.3 Fixed-line telephone service market share, Australia
Telstra
Optus and other
82%
79%
18%
21%
Jun-10
Jun-11
Note: Includes wholesale services.

Source: The ACMA annual industry data request.
F ig u re 1 .4 T a k e -u p o f s e le c t c o m m u n ic a tio n te c h n o lo g ie s
Number of persons aged 14 years and over (million)
The shift away from fixed-line telephony continued in the year to June 2011 (Figure 1.4). An
estimated
2.7 million Australians aged 14 years and over did not have a fixed-line telephone at
18
Jun-08
Jun-09
Jun-10
Jun-11
home,
16compared to 2.3 million at June 2010an increase of 17 per cent. Sixty-one per cent of
those14living in a household without a fixed-line voice service are aged 1834 years. Of this group:
12
10 per cent used a mobile phone

>> 96
8
>> 306 per cent resided in a shared household

4
>> 262 per cent resided in a household with a partner and no children.9
0
The declineHome
of traditional
fixed-line telephone services also confirms
recent
changes
in consumer
No home
Home
Home
Use internet
Mobile
at
VoIPuse
via of mobile phones and take-up of other
communications
in particular,
theVoIP
increasing
via mobile
fixed-line trends;
fixed-line
internet
broadband
phone
home
mobile
phone
telephonetechnologies
telephone
connection connection
communication
such as VoIP and wireless communications
(Figure
1.4). At June
handset
2011, approximately 3.8 million Australians aged 14 years and over used some form of VoIP
services
service at home, compared Voice
to 2.9
million at June 2010, an increaseData
of services
31 per cent. While 83 per
Jun-08
1.3
14.3 VoIP via
1.4 a computer,
0.0
9.7 so via a1.3
cent
of VoIP15.4
users in Australia
used
15 12.4
per cent did
home phone
Jun-09
15.3 phone1.7or voice14.8
2.2
0.1
13.3
11.1
1.6 serviceand
(e.g.
an internet
box/adaptor)a
substitute
to
the traditional
PSTN
Jun-10
15.0 via their
2.3mobile 15.2
0.1
13.8
11.8
2.4
seven
per cent
handset.102.9
Jun-11
15.1
2.7
16.1
3.8
0.3
14.6
12.7
3.9
While the numbers are still relatively low, there has been significant rise in the number
of Australians using VoIP via their mobile handsets, enabled by the increased ownership
of smartphones and the development of VoIP applications for mobiles. In addition, most
mobile platforms now have applications available for VoIP calling, instead of using an internet
F service
i g u r e 1provider.
. 5 T y p eAts June
o f s e2011,
r v i c eapproximately
s b u n d l e d 274,000 Australians used VoIP via their
mobile phone handset, compared to 84,000 at June 2010, an increase of 226 per cent.
years and over
100
97
Apr-10
96
86
80
Apr-11
89
F ig u re 1 .3 F ix e d -lin e te le p h o n e s e rv ic e m a rk e t s h a re , A u s tra lia
At June 2011, an estimated 13 per cent of Australian adult consumers (aged 18 years and over)
are considering using a VoIP service in the next 12 months.11
Telstra
The level that consumers take up VoIP over the next 12 monthsand
disconnect
Optus and consequently
other
their home fixed-line telephone servicewill be instructive. The general willingness of consumers
to consider VoIP is indicative of their changing attitudes to traditional voice communications in
favour of those that are equal or superior in terms of cost and flexibility.
Ongoing developments on the supply-side of
the VoIP market are likely to further drive its take-up
79%
82%
as an alternative to traditional fixed-line and mobile voice services, with impacts on established
carrier-based voice communications. Microsofts purchase of Skype Technologies12with the
expected integration of Skype into Microsoft productsand Skypes integration of outbound calls
to landlines and mobiles phones13 are two such examples.
VoIP continues to make inroads into the business market in Australia with 30 per cent of small
and medium enterprises (SMEs) estimated to be using VoIP at April 2011 compared to 26 per
14
For further information on
cent at April 2010.
21%take-up and use of communications technologies,
18%
including VoIP services, see report 2 in the ACMAs 201011 Communications report series,
Converging communications
channels: Preferences
and behaviours of Australian communications
Jun-10
Jun-11
users.
Number of persons aged 14 years and over (million)
Figure
o f select
s e l e c communication
t c o m m u n i c a t i otechnologies
n te c h n o lo g ie s
F ig
u r e 1 1.4
. 4 TTake-up
a k e - u p of
18
16
14
12
10
8
6
4
2
0
Jun-08
Home
fixed-line
telephone
No home
fixed-line
telephone
Jun-08
15.4
1.3
Jun-09
15.3
1.7
Jun-09
Jun-10
Jun-11
VoIP at
home
VoIP via
mobile
Home
internet
connection
14.3
1.4
0.0
12.4
9.7
1.3
14.8
2.2
0.1
13.3
11.1
1.6
Mobile
phone
Home
broadband
connection
Voice services
Use internet
via mobile
phone
handset
Data services
Jun-10
15.0
2.3
15.2
2.9
0.1
13.8
11.8
2.4
Jun-11
15.1
2.7
16.1
3.8
0.3
14.6
12.7
3.9
Source: Roy Morgan Single Source, June 2011.

F ig u re 1 .5 T y p e s o f s e rv ic e s b u n d le d
% fixed-line telephone users aged 18 years and over
ACMA consumer research has identified cost as a dominant source of dissatisfaction among
fixed-line users and therefore a driver in a consumers decision to disconnect a home fixed-line
telephone service. Polling of current fixed-line users indicates that satisfaction levels in the area
of line rental
lower than in any other aspect of fixed-line service, with one in three
100 are significantly
97
Apr-10
Apr-11
96
expressing a level of dissatisfaction with the cost.15 At April 2011, 54 per cent of consumers who
89
86 household phone had done so to save on the cost of line rental.
had disconnected their fixed-line
80
Efforts by carriers
to attract or retain fixed-line customers have focused on providing financial
incentives such as low-cost line rental or unlimited local calls when bundled with other
communications services, such as internet.
60
56
The use of bundling to drive the retention of a48fixed-line service is based on encouraging
consumers to subscribe to multiple services through the same provider, usually in return
for a price 40
reduction on one or all of the services. At April 2011, 53 per cent of adult
consumers aged 18 years and over (3.6 million people) were estimated to have two or
more telecommunications services provided via a bundling arrangement with their provider.
18
20
12

0
Fixed-line
Internet
Mobile phone
1
Pay TV
1
VoIP
Voice services
Data services
Jun-08
15.4
1.3
14.3
1.4
0.0
12.4
9.7
1.3
Jun-09
15.3
1.7
14.8
2.2
0.1
13.3
11.1
1.6
Jun-10
15.0
2.3
15.2
2.9
0.1
13.8
11.8
2.4
Jun-11
15.1
2.7
16.1
3.8
0.3
14.6
12.7
3.9
As shown in Figure 1.5, 96 per cent of these consumers included a home telephone line as
part of the bundling arrangement, 89 per cent an internet service, 56 per a mobile service and
18 per cent a pay TV subscription.16
F ig u re 1 .5 T y p e s o f s e rv ic e s b u n d le d
Figure 1.5 Types of services bundled
100
97
Apr-10
96
86
Apr-11
89
80
60
56
48
40
18
20
12
1
Fixed-line
telephone
Internet
Mobile phone
Pay TV
1
VoIP
Note: Excludes Dont know and Other responses (both <1 per cent).
Source: ACMA-commissioned research, April 2011.
M a rk e t s h a re o f m o b ile s e rv ic e s in o p e ra tio n , J u n e 2 0 1 1
Discounts, value-for-money and the convenience of dealing with a single service provider are the
main reasons consumers consider bundling telecommunications services. Specifically, 53 per
cent of consumers with two or more telecommunications services bundled at June 2011 identified
VHA
financial discounts or free services (such as free local calls) as an important benefit from service
27%
bundling, while 48 per cent identified the convenience of dealing with a single service provider for
billing purposes.17 Other approaches have also been implemented. For example, Telstra has been
keen to maintain its PSTN revenue base, releasing a number of technology-based initiatives in
the past two years. In April 2010, theTelstra
company launched the T-Hub, a device that incorporates
a wireless handset and PSTN calling 42%
service with touchscreen functionality and internet access.
At June 2011, sales of T-Hub had reached 194,000 units, up from 128,000 units at 31 December
2010.18 A closer examination of bundling is available in the 2011 ACMA report The internet service
market and Australians in the online environment.19
Mobile service availability

Optus
31%
There
are three mobile network operators in AustraliaTelstra, Optus and Vodafone Hutchison
Australia (VHA). VHA resulted from the merger of Vodafone and Hutchison during 200910 and
currently operates the brands Vodafone and 3. VHA recently stopped signing up customers to
3 as part of a merging of its 3 and Vodafone brands.20
All three mobile network carriers operate both a global system for mobile (GSM) and a wideband
code division multiple access (W-CDMA or 3G) network. 3G networks provide access to both
voice and data services, including mobile broadband, and send and receive data more quickly
than GSM networks.
F ig u re 1 .9 M o b ile te le p h o n e s a c tiv itie s u n d e rta k e n d u rin g J u n e
88
Made
calls to the
mobiles
Figures 1.6 and 1.7
depict
coverage of 3G mobile networks for Telstra,88Optus and VHA.
84
Received SMS
At June 2011, GSM networks
provided coverage to 96 per cent of the population.
3G networks
83
82
Sent
SMS
covered approximately 9499 per cent of the population.
81
Made local calls
Taking photos
Received voice mail
Playing games
Bluetooth functions
20
25
24
23
22
36
39
46
49
75
75
Figure 1.6 Telstra 3G network coverage, June 2011
Note: Shaded area shows Telstra NextG coverage at 30 June 2011.

Source: Telstra.
Figure 1.7 Optus and VHA 3G network coverage, June 2011
Note: Shaded area shows Optus and VHA (including 3) 3G mobile coverage at 30 June 2011. Does not include Telstra
NextG coverage.
Source: Optus and VHA.
Number of persons ag
2
0
Home
fixed-line
telephone
No home
fixed-line
telephone
Mobile
phone
VoIP at
home
VoIP via
mobile
Home
internet
connection
Home
broadband
connection
15.1
2.7
16.1
3.8
0.3
14.6
12.7
Use internet
via mobile
phone
coverage
to 94
handset
Recent upgrades have seen VHA and Optus extend their 3G network
per cent21
population
respectively.
Optus
reported
that
upgrades
are
and 97 per cent22 of the Australian
Voice services
Data services
continuing, especially in Tasmania, with the goal of increasing its coverage to 98 per cent of the
Jun-08
15.4
1.3
12.4
9.7
Australian population.
Areas of14.3
increased1.4coverage0.0include south-west
Western1.3
Australia, the
Jun-09
0.1
13.3
11.1
1.6
15.3
1.7
14.8
2.2
Eyre Peninsula in South Australia, the Murray River Valley, inland New South Wales
and inland of
Jun-10
15.0
2.3
15.2
2.9
0.1
13.8
11.8
2.4
Bundaberg
in Queensland.
Jun-11
3.9
On a smaller scale, Optus and Vodafone have both launched femtocell services in 2011, which
improve 3G mobile phone coverage within a 30-metre radius of a portable base station. Aimed at
boosting 3G coverage indoors, femtocell services are branded as 3G Home zone (Optus)23 and
Expand (Vodafone)24, and allow users to make calls via a home or office broadband connection.
ig u re 1 .5 T y p e s o f s e rv ic e s b u n d le d
As at 30 June 2011, Telstra had not launched a femtocell service.
Telstra was piloting Long Term Evolution (LTE) mobile broadband services in May 2011.25
100
97
Apr-10
96
Apr-11
89 operation
Number of mobile services
in
86
At June 2011, there were approximately 29.28 million mobile voice and data services in operation
80 This compared to 25.99 million services at June 2010an increase of 13 per
in Australia.
cent. This increase has been driven by the transition to internet-capable 3G and, more recently,
upgrading to smartphones, along with the increasing provision of mobile wireless broadband
60
services (dongle,
datacards or USB modems).
56
48
Of the 29.28 million mobile voice and data services in operation at June 2011, approximately:
40
>> 16 per cent (4.79 million) were mobile wireless broadband servicesdongle, datacard or USB
modem services, compared to 13 per cent (3.45 million) at June 2010
>> 33 per20cent (9.68 million) were mobile phone handset services18capable of accessing the
internet, compared to 26 per cent (6.78 million) at June122010
1
>> 51 per0cent (14.81 million) were mobile phone voice services without internet1 subscriptions,
Internetmillion) Mobile
phone
VoIP
compared toFixed-line
61 per cent (15.76
at June
2010. Pay TV
telephone
The June 2011 market share of the three mobile carriers, presented in Figure 1.8, shows that
Telstra held approximately 42 per cent, Optus approximately 31 per cent and VHA approximately
27 per cent.
Figure 1.8 Market share of mobile services in operation, June 2011

VHA
27%
Telstra
42%
Optus
31%
Note: Includes mobile broadband subscribers.

F i gTable
u r e 11.3
. 9 shows
M o b i l ethat
t e lpost-paid
e p h o n e s payment
a c t i v i t i earrangements
s u n d e r t a kcontinue
e n d u r i to
n gdominate
June
the mobile services

market, with 18 million post-paid mobile services in operation at June 2011, representing an
18 per cent increase in 12 months.26 Post-paid services accounted for 62 per cent of the total
number of mobile services in operation at June 2011.
88
88
Made calls to mobiles

Received SMS
Sent SMS
84 report 201011 | 39
ACMA Communications
83
82
Fixed-line
telephone
Internet
Mobile phone
Pay TV
VoIP
Table 1.3 Number of mobile services in Australia (million)
Prepaid
Jun-10
Jun-11
% change from
Jun-10 to Jun-11
10.71 m
11.23 m
+5%
Post-paid
27%
15.28 m
18.05 m
+18%
Total
25.99 m
29.28 m
+13%
VHA
Note: Figures include wholesale and retail services. Includes wireless broadband data services provided via data
cards, dongles or USB modems. Data not directly comparable
to previous years due to improved discrimination of
Telstra
mobile broadband services.
42%
m=million.
Activities undertaken via mobile phones
Increasing mobile network and handset capacity, in conjunction with more generous data caps,
has seen an expansion in the range of non-voice activities being undertaken via mobile handsets
in the 12 months to June 2011 (Figure 1.9).
Optus
31%
The largest growth areas for mobile phone handset functions in the last 12 months include
accessing the internet, playing games, sending pictures (MMS), taking videos, playing music and
using global positioning services (GPS) functions. The ABS reports that at June 2011 there were
approximately 9.68 million mobile handset internet subscribers in Australia, up from 8.20 million at
December 2010 and 6.78 million at June 2010.27
F ig u re 1 .9 M o b ile te le p h o n e s a c tiv itie s u n d e rta k e n d u rin g J u n e
Figure 1.9 Mobile telephones activitiesundertaken during June 2010 and 2011
Made calls to mobiles
Received SMS
Sent SMS
75
75
Made local calls

Taking photos
Received voice mail
20
Playing games
Bluetooth functions
Made interstate calls
Picture messaging/MMS
Playing music/MP3s
Did one or more internet activities
Taking videos
9
Using as a personal organiser or PDA

5
GPS (global positional system) functions

Entered a competition or voted using SMS
Made overseas calls
Listening to the radio
3
3
2
3
3
2
2
2
2
2
1
0
Made video calls

Global roaming
Haven't used my main mobile phone in the last 4 weeks
Video messaging
Infra-red functions
Can't say
0
36
39
46
49
88
88
84
83
82
81
25
24
23
22
23
20
23
18
22
15
21
12
15
12
10
10
10
10
10
8
9
2010
2011
20
40
60
80
% of people aged 14 years and over
Note: Activities with largest relative increase in take-up are framed.

Estimates relates to Australian mobile phone users with or without a fixed-line telephone service.
Source: Roy Morgan Single Source, June 2010, June 2011.
F ig u r e 1 .1 0 C o n s u m e r ta k e -u p o f m o b ile p h o n e s , b y h a n d s e t ty p e
40 | Chapter
1 The Australian communications and media market
60
58
100
Using as a personal organiser or PDA

5
GPS (global positional system) functions

Entered a competition or voted using SMS
Made overseas calls
Smartphones
Listening to the radio

3
12
10
10
10
10
10
8
9
video
calls
The increased adoptionMade
of the
smartphone,
with its touchscreen user-friendly2010
interface, is seen
3
2
2011
Global roaming
as a key driver in encouraging
mobile phone
users
to
utilise
their
handsets
for
a broader range
3
28
3 of the adult mobile user population in Australia was
Haven'tof
used
my main mobile
phone in the last 437
weeks
activities.
Approximately
per cent
2
estimated to be using aVideo
smartphone
messaging at2 April 2011 (Figure 1.10).
2
2
Infra-red functions
2
Strong competition between mobile service
providers in Australia has enabled many consumers
1
Can't say
to adopt new handset technology at a0 comparatively low upfront cost, while a range of industry
0 handset
20 internet
40 more 60
80 and attractive
100
incentives has made the use of mobile
affordable
to a
of people
aged 14 years
and over offering more generous
broader range of consumers. During 201011, %
typical
incentives
included
data caps, providing access to paid content services on handsets via walled gardens, increasing
the variety of mobile phone applications for download and enabling broadband internet access
directly from mobile phone handsets.29
F ig u r e 1 .1 0 C o n s u m e r ta k e -u p o f m o b ile p h o n e s , b y h a n d s e t ty p e
Figure 1.10 Consumer take-up of mobile phones, by handset type
% mobile phone users who use handset type
60
58
40
37
27
20
2G handset
3G handset
Smartphone
Source: ACMA-commissioned consumer survey, April 2011, Australians 18 years and over.
F i g u r e Smartphone
1 . 1 1 A c t i v i t i eusers
s u n d eare
r t a more
k e n o nlikely
l i n e vto
i a access
m o b i l e the
p h ointernet
n e h a n dthan
s e ts
other 3G handset users. These

users undertake a wide range of activities online and download mobile applications, delivering
a higher ARPU than traditional mobile phone users (Figure 1.11). However, while handset
applications and mobile broadband are increasingly important revenue generators for carriers,
SMS- and MMS-based activities continued to dominate
the Australian data market in terms of
46
Sent or received email
usage and volumes.
During the 201011 reporting period, approximately
36.3 billion SMS and
74
MMS
messages were sent via mobiles in Australia, an increase of 23 per cent in messaging
Accessed social networking sites such
49
30
volumes
from 200910.
For further analysis of supply and use of 74
mobile applications, see report
as Facebook,
Myspace or LinkedIn
3 in the ACMA 201011 Communications report series, The emerging mobile telecommunications
42
any apps
service marketDownloaded
in Australia.
72
19
Played a game online

8
Made VoIP calls

0
33
3G phone (not smartphone)
Smartphone
13
20
40
60
80
100
% of persons aged 18 years and over who used the internet via their mobile handset
F ig u re 1 .1 2 D is trib u tio n o f in te rn e t s u b s c rib e rs b y a c c e s s te c h n o lo g y , A u s tra
Other
5%
Dial-up
3%
ADSL
22%
F i g u r e 1 .1 1 A cti v i ti e s u n d e r ta k e n o n l i n e v i a m o b i l e p h o n e h a n d s e ts
Figure 1.11 Activities undertaken online via mobile phone handsets

46

Accessed social networking sites such
as Facebook, Myspace or LinkedIn
74
49
74
42
Downloaded any apps

19

8
Made VoIP calls

0
72
33
3G phone (not smartphone)
Smartphone
13
20
40
60
80
100
Source: ACMA-commissioned consumer survey, April 2011.
Internet service availability

Other
5%
Dial-up
3%
ADSL service providers (ISPs) operating with more than

The ABS indicates that the number of internet
22%
1,000 subscribers in Australia fell from 107 in June 2010 to 97 at June 2011.31 This decline
appears the result of factors such as industry consolidation arising from mergers and acquisitions,
the end of the Australian Broadband Guarantee and small players who rely on wholesale ADSL
access exiting the market due to tight profit margins.32
Of the total number of ISPs with more than 1,000 subscribers operating in Australia, 66 per cent
were medium, 24 per cent were large and 10 per cent were very large.33
It is notable that the Australian ISP market is expected to change fundamentally in the transition
to fibre to the premises (FTTP) with the rollout of the NBN. The NBN proposes an Australia-wide
FTTP
wholesale access network extending fibre to at least 93 per cent of premises in Australia.
Mobile
phone
handset analysis of the Australian internet service market is contained in the ACMA report The
Further
Mobile wireless*
47%
internet service market and Australians in the online23%
environment .34
Broadband internet
The current Australian internet service market remains dynamic, characterised by continual
innovation in ISP service offerings, take-up of innovative consumer access devices and
increased consumer participation in the online environment. Higher speed internet services are
underpinning the further development of the digital economy in Australia, allowing a growing
range of information and services to be offered to consumers. Increasing numbers of Australians
are connecting to the internet; according to the ABS, there were 10.9 million internet subscribers
(excluding mobile handset subscribers) at June 2011 covering the household, business and
government sectors. This compares with 9.5 million at June 2010 and represents a 15 per cent
increase over the reporting period. Broadband subscribers accounted for approximately 95 per
cent of all internet subscribers (excluding mobile handset subscribers) at June 2011, compared
to 92 per cent at June 2010.35 In addition, there were 9.7 mobile handset internet subscribers at
June 2011 compared to 6.8 million at June 2010.
F ig u re 1 .1 4 A d d itio n a l I S P s e rv ic e o ffe rin g , A u s tra lia

76
2G handset
3G handset
Smartphone
F i g u r e 1Internet
. 1 1 A c t i vaccess
i t i e s u ntechnologies
d e r t a k e n o n l i in
n e Australia
v i a m o b i include:
l e p h o n e h a n d s e ts
>> dial-uputilises the existing copper-based access network or an ISDN (Integrated Services
Digital Network) connection.
>> digital subscriber
line (ADSL)utilises the existing
46 copper-based access network
74
>>Accessed
hybridsocial
fibre
coaxialsites
(HFC)
combining a fibre backbone and
networking
such cablea separate network
49
as Facebook, Myspace
or LinkedIn
high-speed
coaxial
cable providing the connection from the node
to the premises
74
42
>> mobile internet
(including
datacards, USB modemsand mobile
Downloaded
any apps mobile wirelessdongle,
72
handset internet)
19
33 speed and capacity of fibre to an area closer

>> fibre to the curbFTTC networks extend the
3G phone
smartphone)
to the consumer using existing8copper wires to complete
the(not
physical
connection to the
Made VoIP calls
Smartphone
13
customers premises
>> fibre to the premises

>> satellite.36
20
40
60
80
100
Figure 1.12 presents the distribution of internet subscribers by access technology

Figure 1.12 Distribution of internet subscribers by access technology, Australia, June 2011
Other
5%
Mobile phone
handset
47%
Dial-up
3%
ADSL
22%
Mobile wireless*
23%
Note: Other includes cable, fibre, satellite and fixed-wireless.

*Mobile wireless includes dongle, datacard and USB modem services.
Source: ABS, 8153.0-Internet Activity, Australia, June 2011.
Table 1.4 presents an overview of the growth rates for internet subscribers in Australia by internet
access technology. The figures in Table 1.4 cover the Australian household, business and
government sectors.
Table 1.4 Broadband internet subscriber by technology type

Broadband access
technology
Dec-09
(000)
Jun-10
(000)
Dec-10
(000)
Jun-11 % change from

(000) Jun-10 to Jun-11
ADSL
4,178
4,212
4,458
4,493
Cable
n/p
n/p
n/p
881
n/a
Fibre
11
13
24
31
+138%
Satellite
Mobile wireless*
+7%
107
111
n/p
106
5%
2,838
3,453
4,230
4,786
+39%
n/p
n/p
n/p
41
n/a
Total broadband
8,059
8,718
9,739
10,338
+19%
Total internet
subscribers
8,950
9,502
10,446
10,906
+15%
n/a
6,781
8,197
9,683
+43%
Other
Mobile handset
broadband
n/a: not available.

n/p: not published for specified quarter but included in total.
*Includes data cards and dongles.
Includes fixed-wireless broadband.
Excludes mobile handset internet subscribers.
Counts of subscribers published prior in previous communications reports may vary due to ABS revisions.
Source: ABS, 8153.0Internet Activity, Australia, June 2011.
Asymmetric digital subscriber line (ADSL)
ABS data shows that, while ADSL subscriber numbers increased by seven per cent in the
12 months to June 2011, ADSLs share of the internet subscribers market (excluding mobile
handset internet subscribers) has fallen to 41 per cent. This figure falls further to 22 per cent when
mobile handset internet subscribers are included into base ABS internet subscriber numbers.
Mobile wireless broadband (covering mobile wireless broadbanddongles, datacard and
USB modem services) and mobile handset broadband are the most dominant internet access
technology in Australia in terms of internet subscriber numbers.
At June 2011, approximately 62 per cent of ADSL services in operation were provided by Telstra
through a retail or wholesale arrangement, with the remainder provided by other ISPs using
unbundled lines.37 However, there has been strong growth in the number of services offered by
other providers using unbundled lines, reflecting the growth of competition in the provision of
broadband services. At June 2011, there were approximately 1.7 million unbundled lines, an
increase of 10 per cent since June 2010 (Table 1.5).
Table 1.5 ADSL services in operation

Quarter ending
Telstra wholesale and retail

ADSL
Other Telstra ADSL
products
Jun10
Sept10
Dec10
Mar11
Jun11
% change
from Jun-10
to Jun-11
2,877,414
2,908,493
2,918,781
2,932,201
2,941,408
+2%
58,074
58,762
59,341
59,560
60,159
+4%
Unbundled lines
1,561,488
1,617,118
1,654,332
1,686,077
1,723,320
+10%
Total
4,496,976
4,584,373
4,632,454
4,677,838
4,724,887
+5%
Note: Unbundled lines include ULLS and LSS services in operation.

Source: ACCC, Snapshot of Telstras customer access network, Quarterly as at June 2011.
Mobile internet
Through 3G mobile networks, Australians are able to access internet services either via a mobile
wireless broadband service using a dongle, datacard or USB modem connected to a computer;
or via an internet-enabled mobile phone handset. The combined coverage of 3G networks is
estimated to between 9499 per cent of the Australian population at June 2011 depending on
the mobile operator. The increasing penetration of mobile wireless broadband and mobile phone
handset internet services among consumers is reflected in ABS internet subscriber numbers.38
At June 2011, mobile internet subscribers in Australia across the household, business and
government sectors stood at:
>> 4.79 million mobile wireless broadband subscribers using dongle, data card or USB modem
services, an increase of 38 per cent since June 2010
>> 9.68 million mobile phone handset internet subscribers, an increase of 43 per cent since
June 2010.
Mobile wireless broadband accounted for 23 per cent of total internet subscribers in Australia at
June 2011 (compared to 21 per cent at June 2010), and mobile handset internet accounted for
47 per cent (up from 42 per cent)see Figure 1.12. Factors that may have contributed to the
increasing take-up of mobile wireless broadband and mobile handset internet include:
>> improvements in 3G technology, network coverage and capacity, in particular faster download
and upload speeds39
>> the increasing functionality of mobile phone handsets
>> developments in tablet computer technology, including the release of the iPad (April 2010) and
Android (late 2010) tablets
>> providers competing on price and payment options in order to attract this growing customer
segment
>> a wider range of mobile handset applications and services.
Given the attractiveness of mobile internet services, fixed-line internet providers are also moving
to add mobile broadband to their service offerings.
Fixed-wireless
The increased importance of mobile networks in the provision of internet services is also reflected
in the ACMAs announcement on 27 May 2011 that it would take the first formal steps toward a
joint auction of new spectrum licences in the 700 MHz (digital dividend) and 2.5 GHz bands. The
reallocation of this spectrum, which includes the digital dividend freed up by switching off analog
television, will help to address soaring demand for mobile broadband data. The auction
is scheduled for late 2012.40
Apart from mobile wireless internet, fixed-wireless broadband (such as WiMAX) is also used to
provide internet access to consumers. Fixed-wireless broadband services use an air interface to
connect a broadband service. An antenna installed at the customers premises receives signals
from the service providers base station.
At June 2011, there were approximately 82 fixed-wireless broadband providers in Australia,
operating in both metropolitan and rural areas, compared with 164 at June 2010.41 Market
Clarity notes that in 2011, 3G and fixed-wireless broadband were offered in tandem by over
50 providers, and that while many of these companies continue to offer 3G services, the majority
have abandoned fixed-wireless provision. According to the ABS, fixed-wireless broadband
accounts for less than one per cent of internet connections.42
In June 2011, NBN Co Limited (NBN Co) announced plans to roll out its high-speed fixed-wireless
network covering rural and regional areas by 2015, with the first services to be available from mid
2012.43
Hybrid fibre coaxial
Telstra, Optus and Neighbourhood Cable operate hybrid fibre coaxial (HFC) networks. Telstras
HFC network passes more than 2.7 million homes in Adelaide, Brisbane, the Gold Coast,
Melbourne, Perth and Sydney. The Optus network passes 1.4 million homes in Brisbane,
Melbourne and Sydney. Neighbourhood Cable, a subsidiary of Canberra-based TransACT
Communications, operates an HFC network providing pay TV, broadband/internet and VoIP
telephony services in the regional Victorian cities of Mildura, Ballarat and Geelong.
Typically, HFC networks can provide download speeds of up to 30 Mbit/s, but Telstra, Optus and
Neighbourhood Cable have all recently upgraded their networks to the DOCSIS (data over cable
service interface specification) 3.0 standard, which can provide download speeds of up to 100
Mbit/s.
It should be noted that, in 2011, both Telstra and Optus have entered into agreements with
NBN Co to participate in the rollout of the NBN, which has implications for their respective HFC
networks. Subject to ACCC consideration and relevant shareholder approval, Telstra will cease
to offer voice and broadband services over its HFC network44 and will progressively migrate its
customers onto the NBN as it is rolled out.45 Optus has agreed to migrate its HFC customers
to the NBN and will decommission its HFC network as the NBN rollout progresses.46
Satellite
Satellite broadband services are available throughout Australia, but primarily serve Australians
living in areas of low population density. Most providers are regional ISPs reselling services to
customers in regional, rural and remote areas. The ABS reports that at June 2011 there were
106,000 satellite internet subscribers in Australia (Table 1.4). On 1 July 2011, NBN Co began
offering its interim satellite service offering peak speeds of 6 Mbit/s download and 1 Mbit/s
upload. The interim satellite service will replace the Australian Broadband Guarantee however,
Australian Broadband Guarantee customers are able to retain their services on original terms
for three years from the date of installation.47
Volume of data downloaded
While internet services delivered over mobile networks accounted for the majority of internet
subscribers (70 per cent) in Australia at June 2011, fixed-line networks continued to dominate
internet data downloads (Figure 1.13). During the June quarter of 2011, internet users in Australia
were estimated to have downloaded nearly 274,202 TB of data, a 76 per cent increase on the
download figures from the June 2010 quarter. The bulk of internet data downloads93 per
cent during the June quarter of 2011occurred over fixed-line networks, an increase of two
percentage points from the June quarter of 2010. Growth in data downloads reflects increases
in both overall internet subscriber numbers and average data downloads per subscriber.
In the June quarter of 2011, an average of 25.1 GB of data was downloaded per subscriber
(excluding mobile handset subscribers). This is roughly equivalent to 132 hours of streaming video
on YouTube or 86 hours of watching television programs on the internet. This compared to an
average of 16.1 GB downloaded per subscriber during the June quarter of 2010 and 14.6 GB
during the December quarter of 2009.48
The ABS now also reports separate figures for internet data downloads occurring via mobile
phone handsets. During the June quarter of 2011, 3,695 TB of data was downloaded via mobile
phone handsets, compared with 717 TB during the June quarter of 2010. While overall growth
in mobile phone handset downloads was significantincreasing by just over 415 per cent during
the June quarter of 2011 compared to the June quarter of 2010. On average, each mobile
phone handset internet subscriber downloaded 0.4 GB of data during the June quarter of 2011,
compared with 0.5 GB of data during the June quarter of 2010.
F ig u r e 1 .1 3 V o lu m e o f d a ta d o w n lo a d e d b y A u s tr a lia n in te r n e t u s e r s
Figure 1.13 Volume of data downloaded by Australian internet users

300,000
Fixed-line broadband
274,202
Wireless broadband
Dial-up
250,000
191,839
200,000
155,503
Terabytes
150,000
127,954
100,000
50,000
Dec-09
Jun-10
Dec-10
294
280
183
106
Wireless broadband
14,251
13,330
16,990
19,149
113,410
141,892
174,665
254,947
Dial-up
Jun-11
Note: Excludes data downloaded by mobile handsets. Total volume of data downloaded is based on published
ABS published numbers, and components may not add up due to rounding. The ABS reports that download data
presented should only be considered an indicative measure of internet activity during the reference period and
therefore should be used with caution.
Source: ABS, 8153.0Internet Activity, Australia, June 2011.
Diversification of ISP revenue streams

In response to increased competition, ISPs in Australia continue to seek to diversify revenue
streams through discounting and service bundling. ISPs such as iiNet (as shown by its purchase
of AAPTs consumer division) have sought to expand their market presence/subscriber base
through mergers and to take advantage of new economies of scale.49 Most ISPs now offer their
customers a voice service and increasing numbers are investigating the option of including
professional content services as part of their product range. Figure 1.14 provides an overview
of additional ISP service offerings as at June 2010 and June 2011.
On the basis of ABS data, at June 2011 the typical array of ISP service offerings, in addition
to internet access, included a voice service (whether VoIP or mobile), web and email filtering
services and sometimes content services in the form of IPTV. Development of IPTV services has
the potential to make significant inroads into traditional broadcasting markets for ISPs in Australia.
At June 2011, eight per cent of ISPs in Australia offered these services to their subscriber base,
compared to four per cent at June 2010.
Figure 1.14 Additional ISP service offering, Australia
76
Email content filtering
72
55
VoIP
61
52
50
Home telephone
34
35
Mobile telephone
30
Naked DSL
42
27
28
Web content filtering

10
9
Other services offered
8
8
Digital television
6
No other services offered
11
Jun-10
IPTV
Jun-11
8
0
10
20
30
40
50
60
70
80
% of ISPs
Source: ABS, 8153.0-Internet Activity, Australia, June 2011.

F ig u re 1 .1 5 T re n d s in c a rrie r lic e n s in g
While services such as IPTV are still in their infancy in Australia, developments during the 201011
reporting period indicate that major ISPs are seriously considering these services as an avenue to
45
increase
returns from their existing broadband subscriber base.
Licences granted
40
40
Licences surrendered/cancelled
Number of licences
35
35
32
IPTV
and video on demand service market
30
Despite
the potential for development of IPTV services, the market in Australia is still relatively
25
small.
However,
over the 12 months to
25
23 the supply of these services has continued to expand
22
20 growth dependent on the broadband speeds,
20
June
2011.
With
market
this sector is likely to
19
20
18
16 the NBN.
expand further with the rollout of high-speed broadband 17
services offered by
15
14
13
14
13
IPTV
9 by a number of key market players including Fetch
10 services in Australia have 9been launched
8
7
TV,5 iiNet, 4TPG, Telstra T-Box, Apple TV and Foxtel. TV manufacturers Samsung, Sony,
Panasonic
4
and LG are also enabling IPTV services, producing internet-enabled televisions that utilise the
0
hardware
and software incorporated
into the television set.
200304 200405 200506 200607 200708 200809 200910 201011
200001 200102 200203
Fetch TV is one of the more established

IPTV
Financial
yearproviders in Australia, offering wholesale
subscription TV services including standard free-to-air digital TV channels, pay TV channels and
on-demand video, via a set-top box (STB). During 201011, Fetch TV services were offered by
three ISPsiiNet, Internode and Westnetwith Optus expected to offer IPTV services to its
broadband customers in the next reporting period. Netspace and South Australian-based ISP
Adam Internet both announced partnerships with Fetch TV in October 2010.
Telstra and Optus have also branched into the IPTV market, separately forging partnerships with
now delivers Foxtel channels to
its T-Box customers and via Xbox 360, with BigPond TV also available on Samsungs range of IP
televisions, Blu-ray players and home theatre systems. LGs internet-enabled Smart TV, launched
in18April 2011, also features Telstra 17
BigPond Movies along with content from
Yahoo!7, Fox Sports,
NCDs granted
Live TV and GoConnect.50 Telstras BigPond Movies portal offers video-on-demand online, via the
16
NCDs revoked
Telstra T-Box and some LG devices.
F i g u rae number
1 . 1 6 T of
r e key
n d splayers
in n o m
n a t e d c atheir
r r i eservice
r d e c l aofferings.
r a t i o n s Telstra
toi enhance
Number of licences
14
13
12
11
11
11
11
10
8

6
Optus has partnered with Fetch TV to develop a converged IPTV service with integrated
mobile functionality for use on smartphones and tablet devices.51 In July 2011, Optus launched
Australias first mobile IPTV service, Optus TV Now. This allows Optus mobile 3G customers to
record and watch TV on a compatible mobile phone.52 Using their online cloud service, users can
schedule, record and stream the 15 main free-to-air channels and play them back on their mobile
phone handset or PC.53 At July 2011, this service was only available in Sydney, Melbourne,
Brisbane and Adelaide.
Apple has tentatively entered the IPTV space with the launch of a second-generation version
of Apple TV in September 2010. This multimedia receiver (STB) streams content directly from a
consumers computer to a HDTV and interfaces with other apple devices including iPhones, iPad
and iPod touch. The internet connection also enables direct access to iTunes, YouTube, Netflix
and MobileMe. Via the iTunes store, PPV movies and TV shows are available along with streamed
audio and video podcasts.54
Australias major television networks are all offering catch-up TV services, such as Yahoo7s
Plus7, FixPlay (Ninemsn) and ABC iView, enabling viewers to access recently aired shows on their
websites.
Government programs
The Australian Governments ongoing NBN rollout is the largest government infrastructure project
in Australian history.55
National Broadband Network
The government established NBN Co to design, build and operate a new wholesale-only network
to deliver high-speed broadband to Australians.
The majority of the network will use FTTP connections, which involves providing fibre-optic
cabling to 93 per cent of Australian homes, schools and businesses that delivers broadband
speeds of up to 100 Mbit/s per second, with capability to provide speeds of up to 1 Gbit/s.
All other premises will be connected using a combination of next-generation high-speed fixed
wireless and satellite technologies, delivering peak speeds of 12 Mbit/s.
Tasmania was the first Australian state to be connected to the NBN, with communities in Stage
1 (Scottsdale, Smithton and Midway Point) connected in July 2010. During April 2011, NBN
Co announced the commencement of construction of Stage 2 (11,100 premises in Deloraine,
George Town, Kingston Beach, Sorell, South Hobart, St Helens, Triabunna).56 Stage 3 includes
approximately 90,000 premises in Hobart, Launceston, Devonport and Burnie.
During May 2011, the regional city of Armidale (New South Wales) was the first of five firstrelease sites in mainland Australia to be connected to NBN services using fibre to the premises
technology, which was expected to cover 4,882 premises.57 The second site, Kiama Downs/
Minnamurra (New South Wales), was connected in July 2011, with Townsville (Queensland),
Willunga (South Australia) and Brunswick (Victoria) being connected progressively in the following
months.58
NBN Cos 12-month national rollout plan will be updated on a quarterly basis to include additional
locations. In early 2012, NBN Co is expected to also issue a three-year indicative view of the
rollout, to be updated annually until anticipated completion of the rollout in 10 years time.
To complement fibre rollouts, NBN Co has scheduled deployment of next generation fixedwireless technologies in five release sites to be selected from areas surrounding:
>> Ballarat, Victoria
>> Darwin, Northern Territory
>> Geraldton, Western Australia
>> Tamworth, New South Wales

>> Toowoomba, Queensland.59
From January 2011, developers of broadacre and infill developments of 100 or more premises
were able to apply for the installation of NBN Co fibre infrastructure.
On 1 July 2011, NBN Co launched its interim satellite service, which offers improved broadband
services to eligible users in regional areas, ahead of the introduction of a long-term satellite service
in 2015.60
NBN Regional Backbone Blackspots Program
The Australian Governments NBN Regional Backbone Blackspots Program61 (RBBP) is designed
to improve the supply of backbone transmission links to regional centres where the competitive
backbone infrastructure is lacking. By improving blackspots in the network, the project aims to
enhance competition and encourage service providers to enhance the range, quality and prices
of broadband services to homes and businesses in regional areas. The six priority regional key
locations identified in the competitive process were:
>> Geraldton, Western Australia
>> Darwin, Northern Territory
>> Emerald and Longreach, Queensland
>> Broken Hill, New South Wales
>> Victor Harbor, South Australia
>> South West Gippsland, Victoria.
The $250 million project, being deployed by Nextgen Networks, is projected to benefit
approximately 400,000 people across six states and territories and more than 100 regional
locations. Nextgen Networks is also responsible for operating and maintaining the backbone
transmission for an initial period of five years.
Of the 6,000 kilometres of optical fibre cables to be delivered across regional Australia as part of
the RBBP, an estimated two-thirds of the cables has now been laid.
During March 2011, the fibre backbone links were completed from Perth to Geraldton (449
kilometres). The link to the Victor Harbor area (146 kilometres) and south-west Gippsland (215
kilometres) were also completed during March 2011.62 Nextgen Networks is scheduled to
complete the longer Darwin and Broken Hill routes by the end of 2011.63
National Digital Economy Strategy
The government has also released the National Digital Economy Strategy outlining the
governments vision for Australia to become a leading digital economy by 2020when the
physical rollout of the NBN is nearing completion.64
The strategy contains eight Digital Economy Goals to measure Australias progress in reaching
the vision. The goals address the following areas:
>> online participation by households
>> online participation by businesses and not-for-profit organisations
>> smart management of Australias environment and infrastructure

>> improved health and aged care
>> expanded online education
>> increased teleworking
>> improved online government service delivery and engagement
>> greater digital engagement in regional areas.
The government is implementing a number of programs that will help more Australians access the
economic and social benefits of the NBN, and contribute to achieving the digital economy goals.
Information about these programs and initiatives can be found at www.nbn.gov.au/the-vision/
government-initiatives/.
Digital Regions Initiative
The four-year $60 million Digital Regions Initiative65 currently co-funds 13 innovative digital
enablement projects with state, territory and local governments under a National Partnership
Agreement. The initiative takes a collaborative approach to improve the delivery of education,
health and emergency services in regional, rural and remote Australian communities. Projects
include the delivery of telehealth services to remote Indigenous communities, online training to
rural firefighters and ambulance officers, and virtual learning environments for students living
in regional areas. In addition, three NBN-enabled trials have been announced that expand on
existing projects:
>> NBN Diabetes Telehealth Trial in Townsville
>> EduONEEducation Our New England
>> NSW NBN Telehealth to the Home Trial.
Carrier licensing
In 201011, the ACMA granted 18 carrier licences and four nominated carrier declarations (NCDs).66
In the same period, four carrier licences were surrendered and seven NCDs were revoked.
The ACMA has granted 310 carrier licences since the introduction of the Telecommunications Act
1997. Of these licensed carriers, 191 held carrier licenses at 30 June 2011. In the same time, 120
NCDs have been granted, of which 72 are still in place (figures 1.15 and 1.16).
% of ISPs
45
40
F i g u r e401 . 1 5 T r e n d s i n c a r r i e r l i c e n s i n g
35
Number of licences
Number of licences
35
Figure
30
45
25
40
20
35
15
30
10
25
5
20
0
15
Licences granted
32
1.15
Trends in carrier licensing

25
23
32
23
17
35
14
13
Licences
22 granted
20
19
18
16
40
20
14
9
13
25
4
22
20
19
18
17
16
14
14 200708
200405 200506 200607
200001 200102
13 200203 200304
13 200809 200910 201011
20
10
9
Financial
year
8
0
200001 200102 200203 200304 200405 200506 200607 200708 200809 200910 201011
Financial year
Source: ACMA licensing figures.

F ig u re 1 .1 6 T re n d s in n o m in a te d c a rrie r d e c la ra tio n s
Figure 1.16 Trends in nominated carrier declarations

18
17
NCDs granted
F i g u r e161 . 1 6 T r e n d s i n n o m i n a t e d c a r r i e r d e c l a r a t i o n s
Number of licences
Number of licences
14
12
18
10
16
8
14
6
12
4
10
2
8
0
6
4
2
NCDs revoked
13
11
11
11
11
17
7
NCDs granted
5
3
11
11
3
7
13
11
11
3
7
NCDs revoked
7
4
1
7
200708 200809 200910 201011

200001 200102
200203 200304 200405 200506 200607
5
5
4
4
Financial
year
3
3
3
1
Source: ACMA licensing figures.

0
0
200001 200102 200203 200304 200405 200506 200607 200708 200809 200910 201011
inyear
201011
F i gThe
u r e number
1 . 1 7 G e oof
g rcarrier
a p h i c nlicences
u m b e r a(18)
l l o c agranted
t i o nFinancial
s
was similar to the number (19) in 2009

10, but below the long-term average of approximately 22 carrier licences per year. The number
5,000,000
of carrier
licences granted annually over the last four years has been between 17 and 22.
4,508,600
4,500,000
Numbers allocatedNumbers allocated
It is possible that the new exemption for carriers with less than $25 million in revenue from paying
4,000,000
the number of carrier licence applications, as the
F i gongoing
u r e 1 . 1 7 annual
G e o g r acharges
p h i c n u mor
b efees
r a l l may
o c a t i increase
ons
3,235,600
3,500,000
3,132,400
majority
of carriers will pay no
ongoing annual charges
or fees.
5,000,000
3,000,000
The four
NCDs granted by the ACMA in 4,508,600
201011 were also below the long-term average of
4,500,000
2,500,000
approximately nine per year.
4,000,000
2,000,000
1,478,800
3,235,600of carrier licences3,132,400

3,500,000
1,500,000numbers of surrenders
The annual
and revocations of NCDs
vary from year
1,072,800
1,021,000
to year,
with no clear trends apparent.
3,000,000
1,000,000
2,500,000
500,000
2,000,0001,500,000
200506
1,021,000
200607
200506
200607
200708
200809
1,478,800
200910
201011
1,072,800
200910
201011
Financial year
1,000,000
500,000
-
200708
200809
Financial year
Fr e e t o -ai r br o adcast i n g i n du st r y r e v e n u e s, A u st r al i a, 2 0 0 6 0 7 t o 2 0 1 0 1 1 ( Co n st an t Pr i ce s)
During 201011, the ACMA issued four trial certificates.67 Trial certificates facilitate provision of
new technology and services into the communications market for a limited time.
Allocation of numbers
smartnumbers
The smartnumbers auction system was introduced in 2004 to allocate freephone and local rate
numbers (FLRNs)13, 1300 and 1800 numbers. The system was introduced as an efficient
way to allocate these numbers and enables an appropriate return for this valuable and limited
resource. The ACMA currently conducts a public auction each fortnight.
In May 2010prior to the reporting periodthe ACMA reduced the reserve prices for
smartnumbers. While the quantity of smartnumbers sold in 201011 was slightly higher (nine per
cent) than the quantity sold in 200910, revenue declined by nearly 34 per cent.
In 201011, the ACMA sold 5,399 numbers through the smartnumbers auction allocation system
and raised $2,091,095 in revenue. In 200910, the ACMA sold 4,974 smartnumbers and raised
$3,157,638 in revenue.
Telephone number allocations
In 201011, there was an increase in digital mobile numbers and a reduction in geographic
numbers allocated to CSPs. This trend is similar to 200910 and appears consistent with the
long-term trend away from geographic numbers.
Geographic numbers
Geographic number allocation fell to 1.07 million in 201011, compared with 1.48 million in
200910 and 3.13 million in 200809. Most of these numbers were allocated to existing CSPs.
One new CSP was allocated 28,000 numbers for use in regional areas of eastern Australia.
During 201011, CSPs surrendered 11,000 geographic numbers, down from 15,000 in 200910.
In 200809, 4,300 numbers were surrendered and 23,000 were surrendered in 200708.
On 1 February 2011, following consideration of 17 submissions, the geographic numbering
rules were changed to improve flexibility in the Numbering Plan. The amendments removed the
limitations on outbound-only services (including VoIP) and allowed the use of geographic numbers
outside their normal service area (out-of-area numbers). CSPs that use out-of-area numbers are
required to inform their customers of the implications before supplying them with a service.
Figure 1.17 shows the number of geographic numbers the ACMA has allocated each financial
year since 200506.
Financial year
F i g uFigure
r e 1 . 1 71.17
G e oGeographic
g r a p h i c n u m bnumber
e r a l l o c aallocations
ti o n s
5,000,000
4,508,600
4,500,000
Numbers allocated
4,000,000
3,235,600
3,500,000
3,132,400
3,000,000
2,500,000
2,000,000
1,500,000
1,478,800
1,072,800
1,021,000
1,000,000
500,000
200506
200607
200708
200809
200910
201011
Financial year
Source: The ACMA.
Digital mobile numbers
During 201011, there were allocation requests for 5.9 million mobile numbers, up from 5.6
million in 200910. At 30 June 2011, 57.8 million digital mobile numbers had been allocated to
CSPs in Australia. Increasing use of mobile numbers for devices with wireless internet connectivity
and
for machine-to-machine communication
be important
factors driving continuing
demand
Free-to-air television mayRadio
services
$ billion
$ billion
for7.00
mobile numbers.
1.60
1.33
6.00
1.36
1.34
1.29
1.35
1.29
1.40
Televisions revenue
Location-independent communications service (LICS) numbers

1.20
5.22
5.09
4.60
4.60
0.60
Radio revenue
In 5.00
2007, numbers commencing with 0550 were made available for use with location-independent
1.00
communications services (LICS). The range was introduced for IP-based services
that departed
4.00
significantly from traditional telephone services; in particular, where the service is0.80
nomadic or not
fixed
geographic location.
3.00 to a particular
5.77
4.47
In 2.00
201011, 2,000 LICS numbers were allocated,
with a total of 8,000 LICS numbers
allocated
0.40
to five CPS at 30 June. No LICS numbers were allocated in 200910. The larger or traditional
1.00
0.20 likely that
telephony
CSPs have not requested LICS numbers since their introduction. It seems
most
LICS
services
are
in
use
on
IP-based
networks
and
that
LICS
numbers
will
not be used
0.00
0.00
200708
200809
200910
201011
200506
200607
on circuit-switched
networks.
Other numbers
In 201011, there was limited demand from CSPs for number types other than geographic and
digital mobile numbers. The ACMA did allocate seven international signalling point codes and two
mobile number codes.
F i g u r e 1 .1 9 N u m b e r o f b r o a d ca s ti n g l i ce n ce s i n o p e r a ti o n i n A u s tr a l i a
3,000
Jun-10
2,700 2,759
Jul-11
Number of licences
2,500
2,000
1,500
1,000
500
356 356
273 273
71
81
69
81
100 106
0
Commercial radio
Commercial
Subscription
Community radio
54 | Chapter 1 The Australian

communications
and media market
television
television
Licence type
Community
television
Temporary
community radio
4,508,600
4,500,000
Numbers allocated
4,000,000
3,235,600
3,500,000
3,132,400
3,000,000
Broadcasting
services
2,500,000
2,000,000
1,478,800
1,500,000
1,021,000
Free-to-air broadcasting
industry revenues
1,072,800
1,000,000
The local
free-to-air broadcasting sector is a significant contributor to the Australian economy.
During 500,000
201011, free-to-air television generated approximately $4.6 billion in revenue and
employed 10,090
people. Radio services generated $1.35 billion and employed 6,574 people
200506
200607
200708
200809
200910
201011
(Figure 1.18).
Financial year
Over the last six years, free-to-air television revenue has declined by $1.2 billion from a peak
of $5.77 billion during 200506.
The revenue for the radio services industry has seen minimal fluctuations in recent years and has
experienced a period of growth from $1.29 billion for 200910 to $1.35 billion for 201011.
Figure 1.18 Free-to-air broadcasting industry revenues, Australia, 200607 to 201011

Free-to-air television
$ billion
Radio services
$ billion
1.60
7.00
1.33
1.29
1.35
1.29
1.40
1.20
5.00
1.00
4.00
0.80
3.00
5.77
5.22
5.09
4.60
4.47
2.00
0.60
4.60
Radio revenue
Televisions revenue
6.00
1.36
1.34
0.40
1.00
0.20
0.00
0.00
200506
200607
200708
200809
200910
201011
Note: Figures are inflation-adjusted 2011 dollars. Revenue generated includes government grants, funding and
subsidies, advertising sponsorships income and value of contra arrangements and other revenue generating activities.
Source: IBISWorld, P9123 Free to Air Television Services in Australia, June 2011 and P9121 Radio Services in
Australia, June 2011.
Figure 1.19 provides an overview of the current number of broadcasting licences active in
Australia. In the commercial radio, community radio and community television sectors, the
3,000 of licensed broadcasters has remained unchanged,
number
while subscription television and
Jun-10
Jul-11
2,700 2,759
temporary community radio licence numbers
have both increased. At June 2011, there were 342
commercial
broadcasting (radio and television) licences, 2,759 subscription television licences68
2,500
and 543 community radio and television licences (including temporary licences) active in Australia.
Number of licences
2,000
Developments
in each category of licences will be discussed further in the following sections of
this chapter.
1,500
1,000
500
356 356
273 273
71
81
69
81
100 106
0
Commercial radio
Commercial
television
Subscription
television
Community radio
Community
television
Temporary
community radio
Licence type
F i g u r e 1 .2 0 D i s tr i b u ti o n o f a d v e r ti s i n g e x p e n d i tu r e a c r o s s m a i n m e d i a , 2 0 0 1 2 0 1 0
( ca le nda r y e a rs)
$('000)
16,000
14,000
Figure
F ig
u r e 1 . 11.19
9 N u Number
m b e r o f bof
r o abroadcasting
d c a s t i n g l i c e n clicences
e s i n o p e in
r a toperation
i o n i n A u s t rin
a l Australia
ia
3,000
Jun-10
2,700 2,759
Jul-11
Number of licences
2,500
2,000
1,500
1,000
500
356 356
273 273
71
81
69
81
100 106
0
Commercial radio
Commercial
television
Subscription
television
Community radio
Community
television
Temporary
community radio
Licence type
Source: ACMA licensing numbers.
$('000)
Commercial
broadcasting services
14,000
16,000
12,000
10,000
Commercial
broadcasting services comprise free-to-air radio and television services that are
made8,000
available to the general public. Commercial free-to-air broadcasting services are also
6,000to operate within specified geographic areas and have regulations to limit concentration
licensed
4,000
of their
ownership and control.
2,000
0
2001
2002
2003
2004
2006
2007
2008
2009
2010
Ownership
and
control
of 2005
commercial
television
services
Cinema
64.4
57.9
65.8
74.1
83.6
85.5
93.0
96.0
88.7
99.4
Outdoor
Online
271.1
261.0
296.6
327.1
353.8
378.7
436.5
453.9
399.9
477.3
0.0
167.0
236.0
388.0
620.0
1,001.0
1,346.0
1,710.3
1,871.3
2264.5
4,871.3
4,995.3
5,400.4
5,866.3
6,226.0
6,023.5
6,582.0
6,695.7
5,799.4
5778.3
Only
a small number of control changes occurred in the media industry during 201011. Most of
Radio
695.0
702.4
737.0
841.6
897.5
924.8
984.4
992.0
936.2
1001.3
theTelevision
ownership and control changes in the reporting year were as a result of financial or company
2,490.2 2,659.4 2,923.8 3,265.5 3,376.1 3,419.7 3,750.2 3,729.0 3,484.3 3888.8
restructures
rather than the transfer of licences to different media networks or groups.
Print media
On 14 October 2010, the ACMA allocated two new digital-only commercial television
broadcasting licences under section 38B of the Broadcasting Services Act 1992 (the BSA)one
to service the Broken Hill TV1 licence area and the other to service the Spencer Gulf TV1 licence
area. Both were allocated to companies associated with Southern Cross Media Group Limited.
P r o p o r tio n o f 2 0 1 0 a d v e r tis in g e x p e n d itu r e b r e a k d o w n b y m a in m e d ia c a te g o r y
In December 2010, WIN Television

South Australia Pty Ltd also secured two new digital-only
Cinema
Outdoor
commercial television4%broadcasting
1% licencesone to service Riverland TV1 licence area and one
to service
OnlineMount Gambier South East TV1 licence area. On 16 June 2011, the ACMA allocated to
17%
WIN Television
Griffith Pty Ltd another digital-only commercial television broadcasting licence to
service the Griffith and Murrumbidgee Irrigation Area TV1 licence area.
Three networksSeven, Nine and Tenoperate commercial television broadcasting licences
Printprogramming
media
in predominantly metropolitan markets. Their
is also made available in regional
43%
markets
Radio through affiliation agreements with the regional television licences controlled by Prime
7% Group Limited, Southern Cross Media Group Limited, WIN Corporation Pty Ltd and
Media
Imparja Television Pty Ltd.69 Table 1.5 summarises ownership and control of commercial television
services in Australia.
Television
29%
F i g u r e 56
1 . 2|2 Chapter
O n l i n e 1a The
d v e Australian
r t i s i n g e communications
x p e n d i t u r e , 2 0and
0 8 media
t o 2 0 market
10
A discussion of broadcasters compliance with notification of change in control requirements is

provided in Chapter 4 of this report.
Table 1.5 Ownership and control of commercial television services

Network
Ownership and control
Seven Network
Ltd
>>
6 commercial television licences. Operates television licences in the metropolitan mainland

markets of Sydney, Melbourne, Brisbane, Adelaide and Perth.
>>
1 regional licence covering regional Queensland.
>>
On 12 April 2011, a restructure of the Seven Network companies and controllers of West
Australian Newspapers Ltd resulted in Seven West Media Ltd (formerly West Australian
Newspaper Holdings Ltd) coming into a position to exercise control of the Seven Network
licensees, with private equity group KKR Group Ltd, and associated companies and
partnerships, ceasing to control those licences. This restructure involved a merger of
the commercial radio broadcasting licences and newspaper assets of West Australian
Newspapers Ltd and the commercial television broadcasting licences of Seven Network
(Operations) Ltd.
Nine Network
Australia
(Holdings) Pty
Ltd
>>
6 commercial television licences. Operates television stations in the metropolitan mainland

markets of Sydney, Melbourne and Brisbane.
>>
2 regional licences, one each in the Darwin and northern New South Wales licence areas,
and a digital-only television joint venture with Southern Cross Media Group Ltd in the Darwin
licence area.
Ten Network
Holdings Ltd
>>
5 commercial television licences. Operates television stations in the metropolitan mainland

markets of Sydney, Melbourne, Brisbane, Adelaide and Perth.
>>
On 19 October 2010, Mr James Packer and associated interests, including Consolidated

Press Holdings Ltd, acquired a controlling interest (almost 18 per cent) in Ten Network
Holdings Ltd and its commercial television broadcasting licences.
>>
On 23 November 2010, Mr Lachlan Murdoch acquired half of Mr Packers interests. Both are
now, controllers of Ten Network Holdings Ltd.
WIN Corporation >>

Pty Ltd
>>
21 regional commercial television licences across Australia, including digital-only television

licences through joint venture partnerships with Southern Cross Media Group Ltd in
Tasmania; and with Prime Media Group in the Mildura, Geraldton, Kalgoorlie, Western Zone,
South West, and Great Southern television licence areas. Now controls an additional three
digital-only television licences, respectively servicing Griffith, Riverland, and Mount Gambier
South East.
2 metropolitan commercial television licences affiliated with Nine Network programming in the
Perth and Adelaide metropolitan markets.
Southern Cross >>

Media Group Ltd
19 regional commercial television licences across Australia including joint ventures in relation
to digital-only television services in Darwin, Tasmania, Broken Hill, Spencer Gulf, Mt Isa and
the remote central and eastern Australia licence areas.
Prime Media
Group Ltd
13 regional commercial television licences across Australia including joint venture partnerships
with the WIN Corporation Pty Ltd for digital-only television licences servicing the Mildura,
Geraldton, Kalgoorlie, Western Zone, South West and Great Southern licence areas.
>>
Source: The Register of Controlled Media Groups.
Ownership and control of commercial radio services

Radio ownership arrangements continued to show differences between capital city and regional
markets. Austereo Group Limited, Australian Radio Network Pty Ltd (ARN), DMG Radio
Investments Pty Ltd and Fairfax Media Limited own the majority of capital city commercial radio
broadcasting licences. Austereo Group Limiteds licences were acquired by Southern Cross
Media Group Limited on 25 March 2011.
As noted above, a restructure involving a merger of Seven Network and the radio and newspaper
interests of West Australian Newspapers Ltd saw Seven Media Group Pty Ltd come into a position
to exercise control of nine commercial radio broadcasting licences in regional Western Australia.
Southern Cross Media Group Limited, Super Radio Network/Broadcast Operations and Grant
Broadcasters Pty Ltd remain the three largest networks of regional commercial radio broadcasting
licences.
Ten radio licence owner groups control five or more commercial radio broadcasting licences
eachACE Radio Broadcasters Pty Ltd, ARN, DMG Radio Investments Pty Ltd/Illyria
Investments, Fairfax Media Limited, Grant Broadcasters Pty Ltd, Southern Cross Media Group
Limited, Prime Media Group Limited, Redwave Media Limited, the Smart Radio Group (Pinecam
Pty Ltd) and Super Radio Network (Broadcast Operations Pty Ltd). Another 21 radio licence
owners/controllers hold fewer than five licences each.
Key changes
On 25 March 2011, Southern Cross Media Group Limited acquired Austereo Group Limited
and took control of 12 commercial radio broadcasting licences. Southern Cross Media Group
Limited already controlled two of Austereos licences, jointly with Austereo Group Limited prior
to the purchase. Village Roadshow Limited no longer controls Austereo Group Limited and its
commercial radio broadcasting licences.
Cross-media ownership
A small number of companies control two types of media assets in the same markets:
>> Southern Cross Media Group controls a combination of radio and television broadcasting
licences in 28 licence areas.
>> Fairfax Media Limited controls both radio licences and a newspaper in two metropolitan
licence areas, Sydney and Melbourne.
>> Seven Network Limited controls a television licence and is deemed to be in a position to
exercise control of a newspaper in the Perth metropolitan licence area.
>> WIN Corporation controls a radio and television licence in the Wollongong licence area.
>> Mr Lachlan Murdoch, through his interests in Ten Network Holdings Limited and the DMG
radio licences, controls two radio licences and a television licence in each of the Sydney,
Brisbane, Adelaide and Melbourne metropolitan licence areas; and one radio licence and
one television licence in the Perth metropolitan licence area and the Gosford licence area.
Register of Controlled Media Groups

The Register of Controlled Media Groups is a core component of media ownership rules. The
register, published on the ACMA website, provides information to industry and the community
about the existence of registered media groups operating in licence areas across Australia, the
media operations that form each group and the controllers of those operations. When the register
was first published in March 2007, it contained 131 media groups. The number had increased
to 211 by 30 June 2011, compared to 201 media groups registered at June 2010.
Subscription television in Australia
In 201011, the ACMA allocated 50 subscription television broadcasting licences to Foxtel Cable
Television Pty Ltd (Foxtel). These additional licences provided the largest component of the
increase in the total number of subscription television broadcasting licences allocated by
the ACMA to 2,759 at June 2011, compared to 2,700 at June 2010.
As at 30 June 2011, there are over 2.41 million subscribers to subscription television services
in Australia compared to 2.38 million at June 2010.
Foxtel reported a total of 1.65 million subscriber households including wholesale subscribers,
which equates to growth of 2.5 per cent over the previous financial year.
Subscriber churn was reported as 12.5 per cent for this period, down from 13.5 per cent in
200910.70
Austar had 764,250 subscribers, an increase of 17,102 (2.3 per cent) over the year ending
30 June 2011.71 Residential subscribers to Austar increased by 0.6 per cent to 620,250 while
commercial subscribers increased by 10 per cent to 144,000.72 Average monthly customer churn
had decreased to 1.31 per cent, down from the first quarter rate of 1.72 per cent.73
Community broadcasting services
Community broadcasting services are radio and television broadcasting services that are provided
for community purposes and must not be operated for profit or as part of a profit-making
enterprise, and must encourage community participation in service operation and programming.
The ACMA allocates long-term community broadcasting licences on a merit basis and these
remain in force for five years. The ACMA may renew the licence on application from the licensee
before the expiry of the licence.
Community radio broadcasting licences
At June 2011, there were 356 long-term community radio broadcasting licencesthe same as at
June 2010. The services represent a range of community interests (Table 1.6). Nearly 48 per cent
of community radio broadcasting services represent the general community in their respective
licence areas.
During 201011, the ACMA did the following:
>> Renewed 39 community radio broadcasting licences. Of those, 10 were renewed with agreed
measures2HHH, 2MWM, 2RES, 2WEB, 2WYR, 3APL, 3MDR, 3NRG, 3RUM and 7DBS.
One licence, 2MFM, was renewed after the ACMA accepted an enforceable undertaking given
by the licensee requiring 2MFM to:
>> implement a consultation strategy to encourage Muslims from a broad cross-section of
Islamic organisations in the Sydney RA1 licence area to participate in the operations and
programming of the service
>> amend relevant provisions in its constitution to better align it with the community radio
broadcasting industry template
>> amend its presenter policy so that all members are eligible to become presenters.
>> Did not refuse the renewal of any community broadcasting licences, while three were
surrendered (2TLC, 6SEN and 6TTT).74
>> Advertised 10 community radio broadcasting licences in:
>> Armidale, Bankstown and Narrandera (New South Wales)
>> Cairns, Cherbourg and Palm Island (Queensland)
>> Maryborough and upper Murray (Victoria)
>> Oatlands (Tasmania)
>> Goolwa (South Australia).

One licence was allocated in Maryborough, Victoria (4 May 2011), and a new service
commenced in Bendigo, Victoria.75 Consideration of the other applications was ongoing at the
end of the reporting period.
>> Accepted an enforceable undertaking resulting from the findings in one investigation. Good
News Broadcasters Inc. (6SON) community radio provided an enforceable undertaking
requiring 6SON to improve its corporate governance and management practices, conduct
appropriate training and develop a strategy to encourage community participation.
Table 1.6 Community radio broadcasting services by community interest, June 2011
Community interest
Number
% of total
Aboriginal and Torres Strait Islander
99
27.8%
Educational/special interest
22
6.2%
1.7%
170
47.8%
2.2%
34
9.6%
Senior citizen
2.5%
Youth
2.2%
Total
356
100%
Ethnic
General geographic area
Music
Religious
Source: The ACMA.
Temporary community radio broadcasting licences
The temporary community radio broadcasting licence scheme allows the ACMA to allocate nonrenewable community radio licences to eligible aspirant broadcasters. There were 106 temporary
licences at 30 June 2011. Of these temporary licences, eight share the use of two frequencies; six
are located in Bankstown (New South Wales) and two in Goolwa (South Australia).
Community television services
There were 81 long-term community television broadcasting licensees at 30 June 2011, of which
three were in the metropolitan areas of Brisbane, Melbourne and Sydney. The remaining 78 were
remote Indigenous broadcasting services.
During 201011, the ACMA:
>> advertised for applications for a community television broadcasting licence in Adelaide. The
ACMA received one application for the licence from the licensee of the current trial service,
C31 Adelaide Ltd. Consideration of the application was ongoing at the end of the reporting
period
>> did not renew any community television broadcasting licences during the reporting period.
Community television trials
During 201011, the ACMA made spectrum available for community television trials in:
>> Adelaidefor the period 5 July 2011 to 4 July 2012
>> Perthfor the period 16 April 2011 to 30 June 2013.
These services were made possible by a condition on the apparatus licences that they be used
only to provide an open narrowcasting television service for community and educational non-profit
purposes.
Digitisation of community television services in metropolitan areas
Each metropolitan community television broadcaster has been allocated a new apparatus licence
to provide digital services (Table 1.7). These licences contain specific conditions that reflect the
parameters set by the governments decision. The Adelaide service has yet to commence digital
transmission.
1.00
0.20
0.00
0.00
200506
200708
200607
200809
200910
201011
Table 1.7 Digital transmission of community television services

Area served
Digital transmission start date
Apparatus expiry date
1 March 2010
19 March 2012
1 April 2010
30 June 2013
Sydney
Perth
Melbourne
3,000
Brisbane
2,700 2,759
Adelaide
2,500
28 May 2010
12 January 2012
Jun-10 1 June
Jul-11
2010
31 July 2012
November 2010
4 July 2012
Number of licences
Source: The ACMA.

2,000
Advertising
expenditure in main media
1,500
1,000
Commercial Economic Advisory Service of Australia (CEASA) data shows that total advertising
expenditure across the main media categories (print, television, radio, outdoor and cinema) has
356 356
risen500
consistently
273 273over the past decade with the exception of 2009, and has recently almost
106for the year
recovered to pre-global financial
crisis
levels
(Figure
1.20). The latest
data
81 81CEASA100
71 69
ended031 December 2010 estimated that total advertising expenditure increased by 7.4 per cent
76
Commercial
radio Commercial
Community
Temporary
Subscription Community radio
in 2010 to
$13.5 billion.
television
television
television
community radio
Licence type
Figure 1.20 Distribution of advertising expenditure across main media, 20012010
(calendar years)
$('000)
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
Cinema
64.4
57.9
65.8
74.1
83.6
85.5
93.0
96.0
88.7
2010
99.4
Outdoor
271.1
261.0
296.6
327.1
353.8
378.7
436.5
453.9
399.9
477.3
Online
0.0
167.0
236.0
388.0
620.0
1,001.0
1,346.0
1,710.3
1,871.3
2264.5
Radio
695.0
702.4
737.0
841.6
897.5
924.8
984.4
992.0
936.2
1001.3
2,490.2
2,659.4
2,923.8
3,265.5
3,376.1
3,419.7
3,750.2
3,729.0
3,484.3
3888.8
Print media 4,871.3
4,995.3
5,400.4
5,866.3
6,226.0
6,023.5
6,582.0
6,695.7
5,799.4
5778.3
Television
Source: Commercial Economic Advisory Service of Australia, year ended 31 December 2010.
P r o p o r tAs
i o n Figure
o f 2 0 11.21
0 a dshows,
v e r t i s i nthe
g e print
x p e n (43
d i t uper
r e bcent),
r e a k dtelevision
o w n b y m(29
a i nper
m ecent),
d i a c aonline
t e g o r y(17
per cent) and

radio (seven per cent) media industries attracted the majority of advertising expenditure in 2010.
Outdoor
Cinema
1%
4%
The CEASA figures also
illustrate
the continuing growth of online advertising in Australia. Over this
Online
year, online advertising grew by 21 per cent to $2.3 billiona 17 per cent share of total media
17%
advertising expenditure. In 2009, the online sector had a 15 per cent share.
Overall, the print media continues to have the largest share of total advertising expenditure
(including online and directories) but its share
has been decreasing since 2007, when print
Print media
accounted for about half of all advertising spend.
43%
Radio
7%
Television
2,490.2
2,659.4
2,923.8
3,265.5
3,376.1
3,419.7
3,750.2
3,729.0
3,484.3
3888.8
Print media 4,871.3
4,995.3
5,400.4
5,866.3
6,226.0
6,023.5
6,582.0
6,695.7
5,799.4
5778.3
P r o p o r t iFigure
o n o f 21.21
0 1 0 Proportion
a d v e r t i s i n g of
e x2010
p e n d iadvertising
t u r e b r e a k d expenditure
o w n b y m a i n breakdown
m e d i a c a t e by
g o rmain
y
Outdoor
4%
media category
Cinema
1%
Online
17%
Print media
43%
Radio
7%
Television
29%
F i g u r e 1 .2 2 O n l i n e a d v e r ti s i n g e x p e n d i tu r e , 2 0 0 8 to 2 0 1 0
$ ('000)
TelevisionOnline general
1,200,000
Classifieds
Search and directories
1,128,250
Table 1.8 provides a comparison of the CEASA figures for advertising expenditure on television
in1,000,000
2009 and 2010. The television sectors (percentage) share of total advertising expenditure has
944,250
increased over the past year to 29 per cent with advertising expenditure of almost $3.9 billion.
Metropolitan television showed
806,500 an increase of 11.8 per cent over the last 12 months and regional
800,000 an increase of almost 10 per cent. Over the same period, subscription television
television
increased its (percentage) share of total advertising expenditure from 2.6 per cent in 2009 to
2.8 per cent at the end of 2010. For the 2010 year, subscription 605,250
television recorded advertising
600,000
531,000 years performance
expenditure of $379.9 million, an increase
of 14.2 per cent over the previous
498,000
464,500
439,250
of $332.7 million.
429,000
400,000
Table
1.8 Advertising expenditure on television, 2009 and 2010
200,000
Television platform
0
2009 total
($000)
2008
2009
Metropolitan
% total
advertising
expenditure
2,400,197
Calendar year
19.1%
2010 total
($000)
% total
% change
advertising from 2009 to
expenditure
2010
2010
2,683,453
19.9%
+11.8%
Regional
751,393
6.0%
825,411
6.1%
+9.9%
Subscription
332,679
2.6%
379,901
2.8%
+14.2%
3,484,269
27.7%
3,888,765
28.8%
+11.6%
Number of persons aged 14 years and over ('000s)
Total
12,000
More than once a day
70%
Source: Commercial Economic Advisory Service of Australia, year ended 31 December

60% 2010
56%
60%
52%
44%
48%
50%
8,000
% of online population
Radio
Proportion of online population
10,000
CEASA figures show that total advertising expenditure on radio increased by seven per cent in
40%
2010 to exceed $1 billion for the first time.
6,000
4,000
6,172
7,195
8,094
8,895
10,033
20%
2,000
30%
10%
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
0%
F i g u r e 1 .2 4 A v e r a g e ti m e s p e n t v i e w i n g te l e v i s i o n i n F T A -o n l y a n d S T V h o u s e h o l d s , 2
2,000
0
Cinema
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
64.4
57.9
65.8
74.1
83.6
85.5
93.0
96.0
88.7
99.4
Outdoor
271.1
296.6 of327.1
353.8 expenditure
378.7
436.5
453.9across
399.9the 477.3
Table
1.9 provides
a261.0
breakdown
advertising
on radio
metropolitan and
Online
167.0in 2009
236.0 and
388.0
1,001.0year,
1,346.0
1,710.3 expenditure
1,871.3 2264.5
regional
radio0.0markets
2010. 620.0
In the past
advertising
increased
695.0 per702.4
841.6
897.5
924.8to total
984.4$675.3
992.0 million,
936.2 while
1001.3
byRadio
almost eight
cent in737.0
the metropolitan
markets
the regional
Television recorded
2,490.2 a
2,659.4
2,923.8
3,265.5 3,376.1
3,419.7
3,750.2 3,729.0 3,484.3 3888.8
markets
five per
cent increase
to $326
million.
Print media 4,871.3
4,995.3
5,400.4
5,866.3
6,226.0
6,023.5
6,582.0
6,695.7
5,799.4
5778.3
Table 1.9 Advertising expenditure on radio, 2009 and 2010.

Radio market
2009 total
% total
2010 total
% total
% change
from 2009 to
P r o p o r t i o n o f 2 0 1 0 a d v e r t i s i n g e x p e n d i t u r e b r e ($000)
a k d o w n advertising
b y m a i n m e d i a ($000)
c a t e g o radvertising
y
expenditure
Outdoor
4%
expenditure
2010
Cinema
1%
Online
Metropolitan
626,230
4.9%
675,294
5.0%
+7.8%
Regional
309,977
2.5%
326,005
2.4%
+5.2%
Total
936,207
7.4%
1,001,299
7.4%
+7.0%
17%
Source: Commercial Economic Advisory Service ofPrint

Australia,
media year ended 31 December 2010.
43%
Radio
7%
Online
Figure 1.22 shows the continued growth in online advertising expenditure since 2008. The 2010
year was characterised by significant growth in all online advertising categories, with Search and
directories maintaining its lead, reporting a revenue increase of just under 20 per cent. Revenue
in the General category increased by 21.5 per cent, while Classifieds increased by 23.8 per
cent. Online
advertising expenditure comprised 16.7 per cent of total expenditure in 2010.
Television
29%
2008
F i g u r e 1Figure
. 2 2 O n1.22
l i n e aOnline
d v e r t i sadvertising
i n g e x p e n d i expenditure,
tu r e , 2 0 0 8 to 2
010
to 2010
$ ('000)
1,200,000
Online general
Classifieds
Search and directories
1,000,000
1,128,250
944,250
806,500
800,000
605,250
600,000
531,000
498,000
464,500
439,250
429,000
400,000
200,000
2008
2009
2010
Calendar year
6,000
4,000
6,172
2,000
7,195
8,094
8,895
10,033
30%
20%
12,000
70%internet is playing
The strong
growth inMore
online
expenditure mirrors the increasing role the
than advertising
once a day
60% 2011, approximately
in everyday life to facilitate
social
and
economic interactions. During June
Proportion
of online
population
56%
60% 14 years and
10,000
13.5 million
Australians aged 14 years and over
(73 per cent
of the total population
52%
over) went online compared
to
13
million
during
June
2010.
Australians
are
increasingly
spending
44%
48%
more time
online60 per cent of internet users went online at least once a day50%
in June 2011,
8,000
compared to 56 per cent in June 2010 and 52 per cent in June 2009 (Figure 1.23).77 The internet
40%
is becoming an increasingly important channel for businesses to use to engage with consumers.
10% report 201011 | 63

ACMA Communications
2008
2009
2010
Calendar year
12,000
70%
More than once a day

60%
Proportion of online population

10,000
56%
60%
52%
44%
48%
50%
8,000
40%
6,000
4,000
6,172
7,195
10,033
8,895
8,094
20%
2,000
30%
Figure 1.23 Australians going online more than once a day
10%
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
0%
Consumer use of television services

250
Total commercial
Total FTA
Total subscription TV
Total TV
Minutes per day
210
200
Amount
of television watched in free-to-air-only and subscription
television households
163
158
Australian
television viewers in free-to-air (FTA)-only households spent an average of 163 minutes
150
119
per day watching
television in 2010. Of this total, 158 minutes
117 was spent watching FTA television,
where
the
commercial
television channels accounted 90
for the majority of their viewing (119 minutes
100
76
per day) (Figure 1.24). The figures for FTA and commercial
television viewing include the new
digital television channels.
50
Viewers in subscription television (STV) households spent 210 minutes per day watching
television.
Just over half of this daily viewing was spent watching subscription channel services
0
TV-only
householdswas spent watching
Subscription
TV households
(117 minutes)FTA
and
90 minutes
FTA television.
Viewers spent a small amount of time watching community television. This is not reported
separately and is a subset of the total viewing in FTA households.
360
Subscription TV 2008
FTA TV-only 2008
300
FTA TV-only 2010
Subscription
TV households
Minutes per day
240
180
FTA TV only households
120
60
0
04
512
1317
1824
2539
4054
5564
Age group

Total commercial
Total FTA
65+
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Figure 1.24 Average time spent viewing television in FTA-only and STV households, 2010
250
Total commercial
Total FTA
Total TV
210
Minutes per day
200
163
158
150
119
117
100
90
76
50
FTA TV-only households
Subscription TV households
Note: Total TV includes community television.

Source: OzTAM Pty Ltd.
360
Subscription
TV 2008 of time people in different age groups spent watching television in
Figure 1.25 shows
the amount
Subscription
TV 2010 and how this has changed between 2008 and 2010.78 Across all
FTA-only and STV
households,
FTA
TV-only
2008
age groups, those with STV watch more television than their FTA-only counterparts. As people
300
TV-only
2010 time watching television.
age,
they also FTA
spend
more
Minutes per day
With the exception of those aged between 13 and 39 years, viewers in FTA-only households
spent
than they did in 2008 (Figure 1.25).79 Among younger
Subscription
240 more time watching television in 2010
TV
households
viewers, the average time spent watching television increased by seven minutes for viewers
aged 04 and four minutes for those aged 512. Viewers aged 40 and over also spent more
time
watching television in 2010. Those aged 4054 averaged 187 minutes per day, an increase
180
of eight minutes over their 2008 viewing levels. Those in the 5564 age group increased their
viewing by an average of five minutes to 219 minutes per day. In line with the trends for previous
years, viewers aged 65 and over recorded the highest amount of minutes watching television in
120
2010, with 269 minutes per day. This represented an increase of four minutes over their 2008
viewing levels.
Over
60 this time period, the average time spent viewing FTA television decreased by eight minutes
for both the 1317 and 1824 age groups, while there was no change for the 2539 age group.
The 1824 age group continued to record the lowest level of television viewing (78 minutes).
0
Viewers
in04
subscription
television
householdsapart
from4054
those in 5564
the 2539 65+
and
512
1317
1824
2539
4054 age groupsspent less time watching television in 2010 than they did in 2008. Older
Age group
adults recorded the greatest decline, with those in the 5564 age group watching 15 fewer
minutes, and those in the 65 year and over age group watching 14 fewer minutes. Like their FTATotal commercial
Total FTA
only counterparts, those in the
1824 age group
recorded
the lowest level of overall viewing
120minutes
118
in STV households, a decline of nine minutes in comparison to 2008 levels.
115
112
107
Younger viewers (children in the 04 and 512 age groups) also watched less television in 2010.
97
Children aged 512 averaged 141 minutes of television a day in 2010,
a decrease of eight
88
minutes on 2008 (149 minutes). The trend
towards decreased levels of television viewing in STV
households peaked with the 1317 age group, whose average of 122 minutes of television a day
76
in 2010 was an 18-minute decrease
72 on 2008 levels (140 minutes).
Minutes per day
67
60
60
58
42
37
41
45
35
0
04
512
FTA TV-only
1317
04
512
1317
Subscription TV
50
FTA TV-only households
Subscription TV households
Figure 1.25 Average time spent viewing television in FTA and STV households, 2008 and
2010
360
FTA TV-only 2008
300
FTA TV-only 2010
Subscription
TV households
Minutes per day
240
180
120
60
0
04
512
1317
1824
2539
4054
5564
65+
Age group
Note: Total includes community television.

Total commercial
120
Total FTA
115
112
107
97
Childrens viewing
88
Minutes per day
Children in STV households watched more television than children in FTA-only homes. Figure 1.26
shows that, in addition to 112 minutes of subscription television per day, 04s in76
STV households
watched just under one hour of FTA 72
television (58 minutes). The 04s in FTA-only households
67
watched an
average of 115 minutes of FTA content each day, with commercial television
60
58
60
accounting
for one hour of viewing (Figure 1.26). In FTA-only
households, children aged 04
watched an average of 53 minutes of the ABC Network (ABC1 and ABC2) each
day, compared
45
42
41
to 20 minutes in STV households.
37
35
As children move into their school (512) and teenage (1317) years, they watch less television
than the 04 age group, with subscription television dominating the daily viewing of older children
in STV homes and commercial television dominating viewing in FTA-only households. The amount
of time older children spent watching the ABC Network declined significantly in those homes
where0 subscription television was available (an estimated total of six minutes per day for those
aged 512 and
three minutes
for teenagers).
In FTA04
households,512
there is a similar
decline with
04
512
1317
1317
age, but some ABC viewing does take place (38 minutes for 512 year olds and 13 minutes for
teenagers).
FTA TV-only
Subscription TV
Age group
Total commercial
Total FTA
300
260
Minutes per day
240
180
180
164 164
140
120
183
144
132
115
115
85
75
106
93
130
0
04
512
1317
1824
2539
4054
5564
65+
Age group
Figure 1.26 Average time viewing television by children in FTA and STV households, 2010
Total commercial
120
Total FTA
115
112
107
97
88
67
Minutes per day
76
72
60
60
58
42
37
41
45
35
0
04
512
1317
04
512
FTA TV-only
1317
Subscription TV
Age group
Note: Total includes community television.

Total commercial
Total FTA
300
260
Adults
240viewing
Minutes per day
As people age, they spend more time watching television. Adults aged 65 and over watched the
highest amount of television in both FTA-only and STV households. In STV households, this group
183
180FTA television
spent as
much time watching
(164 minutes) as they did watching subscription
180
164 164
television (Figure 1.27), with the majority of their FTA viewing being commercial television (130
144
140
minutes). As with younger viewers, adults in STV homes spent less time
watching the national
132
130
broadcasters115
than did their FTA-only counterparts.
115
120
106
93
85
75
60
0
2539
4054
65+
2539
FTA TV-only
4054
65+
Subscription TV
Age group
Streamed video (e.g. YouTube)*
Downloaded feature-length movie
Streamed TV (e.g. ABC iView)
Downloaded TV programs
Downloaded audio/video podcasts
2,314
292
355
568
478
625
1,056
787
974
562
560
655
786
Jun-08
Jun-09
Jun-10
1,089
Downloaded video clips
2,631
329
455
515
612
Jun-11
1,347 ACMA Communications report 201011 | 67
1,433
1,580
0
04
512
1317
04
512
FTA TV-only
1317
Subscription TV
Age groupby adults in FTA-only and STV households,

Figure 1.27 Average time viewing television
2010
Total commercial
Total FTA
300
260
Minutes per day
240
180
180
164 164
140
120
183
144
132
115
115
130
106
93
85
75
60
0
2539
4054
65+
2539
FTA TV-only
4054
65+
Subscription TV
Note: Total FTA includes community television.

Age group
2,314
2,631
329
455
Digital
television
channel viewing
Downloaded
feature-length movie
515
612 24,
Four new digital television channelsABC
7mate, the Nine Networks Gem and Network

292
Tens ELEVENcommenced broadcasting
during the reporting period, bringing the total number
355
568 amount of time spent watching digital television
of digital
channels to 17 at June 2011. The
1,056
channels varied significantly by age. Among
younger viewers, the ABC digital channels recorded
478
625
the highest
levels,TVattracting
viewers aged 04 and 512, while the Nine
Downloaded
programs in particular pre-school
787
974viewers aged 517. Seven Jun-08
Networks digital channels had some appeal for
and Nines digital
562over, with Sevens digital offeringsJun-09
channels appealed to those aged 40 and
attracting the highest
560
655 aged 5564 and 65 and over.
amount
of time spent viewing among those
Jun-10
786
1,089
Online digital media activities
Jun-11
1,347
1,433
1,580
ISPs in Australia have facilitated the development

of online digital content by offering high625
757
Streamed music
1,009
speed internet services
and more generous data
allowances to consumers.80 Consumers have
1,202
responded by spending increasing amounts of time online and downloading more content.81
724
Content providers
recognising the potential 796
of online content distribution channels have
Streamed radio
709
responded to consumer demand for greater variety
and flexibility in media consumption by
912
82
providing services such as catch-up
viewing.
In
response,
Australians
are accessing
more
0
500
1,000
1,500
2,000
2,500
3,000
traditional broadcasting content online (Figure 1.28).
300,000
Wireless broadband
Dial-up
250,000
274,202
0
2539
4054
65+
2539
4054
FTA TV-only
65+
Subscription TV
Age group
Figure 1.28 Digital media activities undertaken online by Australians

2,314
2,631
329
455
515
612
Downloaded feature-length movie
292
355
568
1,056
478
625
Downloaded TV programs
787
974
Jun-08
562
560
655
786
Jun-09
Jun-10
1,089

625
757
Streamed music
Jun-11
1,347
1,433
1,580
1,009
1,202
724
796
709
912
Streamed radio
0
500
1,000
1,500
2,000
2,500
3,000
*Data not available for June 09 and June 08.

Endnotes
8
9
10
11
12
13
14
15
16
17
18
Dial-up
19
Market Clarity Database, June 2011.

Telstra,
Telstra Corporation
Limited Financial Results for the Year ended 30 June 2011, 11 August 2011.
300,000
274,202
Telstra, Telstra Corporation
Wireless broadband
Telstra, Telstra Corporation
Dial-up
Exchange
250,000 Daily, Optus resilient in the face of tough competition, No. 607, 12 August 2011.
Singtel Optus, Financial Results Presentation Q1 FY12: Quarter ended 30 June 2011, 11 August 2011.
SingTel, Management discussion and analysis of financial condition, results of operations cash flows for the first
quarter ended 30 June 2011.
191,839
200,000
Hutchison
Telecommunications (Australia) Limited, Half year results, August 2011.
Roy Morgan Single Source, June 2011.
155,503
Roy150,000
Morgan Single127,954
Source, June 2011.
A. Das & N. Wingfield, Microsoft buys Skype for $US8.5bn, The Australian, 11 May 2011, www.theaustralian.
com.au/business-old/news/microsoft-buys-skype-for-us85bn/story-e6frg90x-1226053705339.
Josh
Constine, With Voice Calling, Facebooks Skype Partnership Will Offer Alternatives to Traditional Carrier
100,000
Plans, Inside Facebook, 10 August 2011, www.insidefacebook.com/2011/08/10/facebook-skype-messenger/.
Businesses with 1200 employees. Sensis, e-Business report: The Online Experience of Small and Medium
Enterprises 2011, September 2011.
50,000
research, April 2011.
ACMA-commissioned
ACMA-commissioned research, April 2011. Australian fixed-line telephone consumers aged 18 years and over.
Telstra Corporate
Limited and controlled entities: Appendix 4E Preliminary report for the year ended
0
Dec-09
Jun-10
Dec-10
Jun-11
30 June 2011.
280
183environment, July106
ACMA, The internet 294
service market and Australians
in the online
2010.
Terabytes
1
2
3
4
5
6
7
Wireless broadband
14,251
13,330
16,990
19,149
113,410
141,892
174,665
254,947
20 Hamish Barwick, Vodafone stops signing up new 3 customers, Computerworld, 31 August 2011,
www.computerworld.com.au/article/399187/vodafone_stops_signing_up_new_3_customers/.
21 VHA, www.vodafone.com.au/business/corporate, accessed 24 August 2011.
22 Singtel Optus, Management Discussion and Analysis of Financial Condition, Results of Operations and Cash
Flows for the 4th quarter and year ended 31 March 2011, www.optus.com.au/dafiles/OCA/AboutOptus/
MediaCentre/SharedStaticFiles/SharedDocuments/4thqtr0910-mda.pdf, accessed 28 July 2011.
23 N. Bhatt, Optus bids for home phones with femtocell launch, 28 July 2011, www.itnews.com.au/
News/265100,optus-bids-for-home-phones-with-femtocell-launch.aspx, accessed 26 August 2011.
24 J. Taylor, Vodafone offers femtocell for businesses, 4 May 2011, www.zdnet.com.au/vodafone-offers-femtocellfor-businesses-339314380.htm.
25 Telstra launched its LTE service in September 2011. APC, Telstras 4G LTE mobile network turned on today: plus,
its 4G strategy explained, 27 September 2011, http://apcmag.com/telstras-4g-lte-mobile-network-turned-ontoday-plus-their-4g-strategy-explained.htm.
26 Post-paid customers are usually billed for their use of a carriers services on a regular monthly basis, based on
either the terms of a contract or on the amount of services they have used.
27 ABS, 8153.0Internet Activity, Australia, June 2011.
28 A smartphone is a mobile phone handset that integrates the functionality of a mobile phone handset with a
personal digital assistant (PDA). In addition to internet access, a smartphone may have the ability to sync with a
computer, create documents and spreadsheets, play music, manage social networks through various applications
and take pictures.
29 Carrier websites and annual reports.
30 ACMA industry data request, 2011.
32 ACMA, The internet service market and Australians in the online environment, July 2011.
33 The ABS classifies ISP size by the number of subscribers where medium ISPs have 1,00110,000 subscribers,
large ISPs have 10,001100,000 subscribers and very large ISPs have 100,001 subscribers or more.
34 See www.acma.gov.au/WEB/STANDARD/pc=PC_410069.
36 This contrasts with fibre to the node or FTTN, which serves a larger area but where the cabinet may be located
some kilometres from the customers premises.
37 ACCC, Snapshot of Telstras customer access network as at March 2011, www.accc.gov.au/content/index.phtml/
itemId/853523. An unbundled service is either an unconditioned local loop service (ULLS)where an ISP installs
its own digital subscriber line access multiplexer (DSLAM) equipment in Telstras local exchange building and rents
the copper wire to the end users premisesor a line-sharing service (LSS)where the ISP and Telstra share the
line, with the ISP providing ADSL broadband services using a different portion of the copper pair to that used by
Telstra to provide voice services.
38 Numbers relating to handset broadband are not included in ABS subscriber numbers prior to the June 2010
quarter reporting period.
39 Advertised theoretical download speeds provided currently by the major network providers vary. The maximum
advertised download speeds range from 2.6 Mbit/s to 42 Mbit/s in selected areas, recognising that such quoted
maximums are not necessarily indicative of typical download speeds. A number of factors affect download speeds
including location, network congestion, distance from tower, and general network and internet traffic. As networks
upgrade, customers will be required to have compatible devices to take advantage of the increased data rates
provided by their carrier. Currently, the speeds available through mobile networks appear to vary significantly, with
the typical downstream speeds generally well below the quoted maximum and highly dependent on the specific
access circumstance.
40 ACMA, ACMA moves ahead with auction of spectrum in the 700 MHz (digital dividend) and 2.5 GHz bands,
media release, 27 May 2011, www.acma.gov.au/WEB/STANDARD/pc=PC_312543.
41 Market Clarity database, July 2011.
43 NBN Co, NBN Co selects fixed wireless network partner for mid-2012 service start, media release, 1 June 2011,
www.nbnco.com.au/news-and-events/news/nbnco-selects-fixed-wireless-network-partner-for-mid-2012-servicestart.html.
44 www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-signs-nbn-definitive-agreements-2.xml.
45 www.telstra.com.au/abouttelstra/media-centre/announcements/telstra-signs-nbn-definitive-agreements-2.xml.
46 www.optus.com.au/aboutoptus/About+Optus/Media+Centre/Media+Releases/2011/Optus+reaches+landmark+a
greement+with+NBN+Co+on+HFC+network.
47 NBN Co, Remote Australians the priority for new NBN Interim Satellite Service, media release, 6 May 2011,
www.nbnco.com.au/news-and-events/news/remote-australians-the-priority-for-new-nbn-interim-satellite-service.
html.
48 ACMA analysis based on ABS figures. The internet service market and Australians in the online environment,
5 July 2011.
49 ACMA, Internet service market and Australians in the online environment, July 2011.
50 Cnet, LG unveils Smart TV and Cinema 3D, 15 April 2011, www.cnet.com.au/lg-unveils-smart-tv-and-cinema3d-339313310.htm.
51 Optus, Optus partners with FetchTV to develop multi-device IPTV service, media release, 9 May 2011,
www.optus.com.au/aboutoptus/About+Optus/Media+Centre/Media+Releases/2011/Optus+partners+with+Fetch
TV+to+develop+multi-device+IPTV+service.
52 Optus, Optus unlocks free-to-air-TV on your mobile with landmark innovation in mobile entertainment, media
release, 19 July 2011.
53 www.optus.com.au/home/digital-life/tv-now/?sid=HAFeat1:tvnow:OSC:MPOST:OCA:MPOST:19072011,
accessed 9 August 2011.
54 www.apple.com/au/appletv/#whatis, accessed 25 August 2011.
55 The National Digital Economy Strategy, May 2011, www.nbn.gov.au/the-vision/digitaleconomystrategy/.
56 DBCDE, NBN Rollout in Tasmania: Next Phase, media release, 28 April 2011, www.minister.dbcde.gov.au/media/
media_releases/2011/160.
57 DBCDE, Historic Launch of NBN in Armidale, media release, 18 May 2011, www.minister.dbcde.gov.au/media/
media_releases/2011/183.
58 DBCDE, Second mainland site connected to the NBN, media release, 29 July 2011, www.minister.dbcde.gov.au/
media/media_releases/2011/second_mainland_site_connected_to_the_nbn.
59 DBCDE, Early fixed wireless rollout to communities, media release, 3 August 2011, www.minister.dbcde.gov.au/
media/media_releases/2011/second_mainland_site_connected_to_the_nbn.
60 NBN Co, NBN Co launches Interim Satellite Service for remote Australians, media release, 12 July 2011.
www.nbnco.com.au/news-and-events/news/nbnco-launches-interim-satellite-service-for-remote-australians.html
61 See www.nbn.gov.au/about-the-nbn/nbn-progress/regional-backbone-blackspots-program/.
62 South West Gippsland data from www.nextgennetworks.com.au/RBBP_home.htm.
63 See www.nextgennetworks.com.au/RBBP_home.htm.
64 The National Digital Economy Strategy, May 2011, www.nbn.gov.au/the-vision/digitaleconomystrategy/.
65 See www.dbcde.gov.au/funding_and_programs/digital_regions_initiative. More information about Digital Regions
Initiative projects and how they are improving the delivery of education, health and emergency services in regional,
rural and remote Australian communities is available at www.dbcde.gov.au/digitalregions.
66 A nominated carrier declaration (NCD) permits the owner of one or more network units to nominate a licensed
carrier to supply carriage services over those units to the public, subject to the carrier satisfying the ACMA that it
is in a position to comply with carrier-related obligations for those network units.
67 A trial certificate permits the owner of one or more network units to trial new network units and services without
the need for a carrier licence. A trial certificate may be issued for a period up to six months.
68 Each subscription service is licensed separately.
69 Imparja Television Pty Ltd and Southern Cross Media Group Ltd jointly control digital-only television licences, one
in each of the remote central and eastern Australia television licence area and the Mt Isa television licence area.
70 Foxtel, Foxtel Announces Solid Growth Despite Difficult Consumer Environment, www.foxtel.com.au/about-foxtel/
communications/foxtel-continues-eernings-momentum-84876.htm, accessed 11 August 2011.
71 Austar United Communications Limited, First Half 2011 Year Results, www.austarunited.com.au, accessed 29
July 2011.
72 Austar United Communications Limited, Growth in cautious environment, Austars H1 2011 results,
www.austarunited.com.au, accessed 29 July 2011.
73 Austar United Communications Limited, Churn down after natural disasters, Austars H1 2011 results,
www.austarunited.com.au, accessed 29 July 2011.
74 6SEN surrendered community broadcasting licence SL1150828 in the Perth RA2 licence area, as it was
successful in its application for community broadcasting licence SL1150795 in the Perth RA1 licence area.
75 The ACMA made a decision to allocate a licence to 3WTL in Bendigo in the previous reporting period.
76 Commercial Economic Advisory Service of Australia (CEASA), Advertising expenditure in main media: Year ended
31st December 2010, May 2011.
77 Roy Morgan Single Source, June 2011.
78 This data refers to the OzTAM figures for the 6.00 am to midnight period for the five metropolitan markets over the
calendar years of 2008 and 2010.
79 Based on the latest ratings data analysis released by FreeTV Australia, this trend towards increased levels of
television viewing appears to have continued. An analysis of the average television audience for the first half of
2011 showed that viewers in metro areas are watching an additional 35 minutes of television a week and regional
viewers are watching an extra 1 hour and 45 minutes a week, when compared to the same period last year.
Source: FreeTV Australia, Australians watching an extra 35mins of TV a week, media release, 14 July 2011.
80 ACMA, Internet service market and Australian in the online environment, 5 July 2011.
81 ABS, 8153.0Internet activity survey, Australia, June 2010.
82 ACMA, Communications report 200910 series, Changing business models in the Australian communication and
media sectors: Challenges and response strategies, January 2011.

Chapter 1 The Aus Communications and Media Market

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 1 The Aus Communications and Media Market

Uploaded by

Copyright:

Available Formats

Chapter 1

The Australian communications

Table 1.1 Key industry statistics

People without a home fixed-line telephone service

Home VoIP users

Mobile wireless broadband subscribers*

Mobile phone handset internet subscribers

Total number of internet subscribers

Total number of broadband internet subscribers

Mobile telephone VoIP users

Mobile phone handset services without an internet

Volume of SMS and MMS messages sent

Pay TV subscribers (households)

Australians with a home internet connection

Australians with a broadband at home

Australians going online

Australians going online at least once a day

Australians going online via their mobile phone handset

Pages of web content viewed at home

Australians streaming radio online

Australians streaming TV online

Australians downloading TV programs

Average volume of data downloaded per subscriber

Total volume of data downloaded from the internet

Geographic number allocations

ACMA Communications report 201011 | 31

% share of telecommunication industry revenues

32 | Chapter 1 The Australian communications and media market

Communication service availability

Fixed-line services in operation

ACMA Communications report 201011 | 33

Jun-10 Internet service

Retail (own network)

*Expressed as media in Telstra 201011 financial results.

34 | Chapter 1 The Australian communications and media market

Figure 1.3 Fixed-line telephone service market share, Australia

Note: Includes wholesale services.

10 per cent used a mobile phone

>> 306 per cent resided in a shared household

years and over

ACMA Communications report 201011 | 35

F ig u re 1 .3 F ix e d -lin e te le p h o n e s e rv ic e m a rk e t s h a re , A u s tra lia

Number of persons aged 14 years and over (million)

Source: Roy Morgan Single Source, June 2011.

% fixed-line telephone users aged 18 years and over

36 | Chapter 1 The Australian communications and media market

Figure 1.5 Types of services bundled

% fixed-line telephone users aged 18 years and over

Mobile service availability

F ig u re 1 .9 M o b ile te le p h o n e s a c tiv itie s u n d e rta k e n d u rin g J u n e

ACMA Communications report 201011 | 37

Figure 1.6 Telstra 3G network coverage, June 2011

Note: Shaded area shows Telstra NextG coverage at 30 June 2011.

Figure 1.7 Optus and VHA 3G network coverage, June 2011

38 | Chapter 1 The Australian communications and media market

% fixed-line telephone users aged 18 years and over

Figure 1.8 Market share of mobile services in operation, June 2011

Note: Includes mobile broadband subscribers.

the mobile services

Made calls to mobiles

Table 1.3 Number of mobile services in Australia (million)

Activities undertaken via mobile phones

Made local calls