Smaller broadband providers take it up to Telstra, TPG

The news: Smaller broadband providers are putting a dent in Telstra and TPG's business, with their market share falling to 41.5% and 21.7% respectively in the June quarter, according to the ACCC.

The numbers: Telstra and TPG’s service numbers dropped by almost 76,000 combined during the quarter. Optus’ market share remained steady at 13.1%. Vocus grew by over 33,000 services, taking its market share to 7.9%. There was similar growth for Aussie Broadband, which gained over 28,000 services to now have 7.5% market share. Superloop now has 3.1% per cent market share and Southern Phone has 1.4%. The report also found nearly 55,000 premises upgraded to higher capacity fibre to the premises services in the quarter. Demand for satellite services continued to decrease, with a decline of 4.8% this quarter.

The context: The ACCC's NBN Wholesale Market Indicators Report shows continued demand from consumers for innovative and competitive services is fuelling sustained growth of smaller broadband providers. Retail service providers use NBN Co’s wholesale access service to supply retail services to their own customers or to supply a wholesale service to another (usually smaller) retail service provider. Most small retail service providers do not directly connect with NBN Co, instead reselling the services they buy from larger providers such as Telstra, TPG and Optus.

What they said: "Retailers are acquiring more network capacity per service from NBN Co in order to meet consumer demand during the busy hours of 7 to 11pm," ACCC Commissioner Anna Brakey said.