ISPs challenging Telstra's business internet lead
Telstra still dominates the Australian enterprise fixed broadband market, but smaller rivals are chipping away at its lead in some segments.
Roy Morgan Research estimates that Telstra’s share of the business fixed internet market was 55% in July. While this appears a commanding lead, it is significantly lower than Telstra’s 70.9% share in the fixed phone market and 63% share of mobile subscribers.
The next largest players in the enterprise fixed broadband market are Optus (12%), iiNet (8%) and TPG Telecom (6%).
Competition is particularly strong in certain segments - such as the professional services industry, where Telstra no longer has a majority share. Telstra’s stake in this segment is 49%, compared to 13% for Optus, 12% for iiNet and 9% for TPG Telecom.
Telstra has a stronger hold of other large segments, such as construction and retail trade. But Optus has been increasing its presence in the construction industry, and TPG’s share of the retail segment has been increasing over the past two years.
“While Telstra’s penetration of the fixed internet market over time appears to be stable, or even slightly increasing since 2011, there are signs of smaller players making inroads in some industries,” Roy Morgan Director of Business Research Nigel Smith said.
“The coming of the NBN over the next few years may potentially increase this trend towards business market competition for fixed internet services.”
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