Australian Customers Buying More 50-Mbps Service; 63% Buy at Speeds of 25 Mbps or Less

Internet access customers in Australia are starting to buy faster-speed plans  offered by retailers of National Broadband Network services. In the most-recent quarter, 26 percent of consumers were buying 50-Mbps plans, up from 4.6 percent in December 2017, the NBN says.

About 29 percent of customers buy service at 12 Mbps, while 34 percent buy service at 25 Mbps, the Australian Competition and Consumer Commission says.

Some 11 percent buy service at 100 Mbps, with negligible adoption of services at 250 Mbps, 500 Mbps or 1,000 Mbps.

As almost always is the case, lower prices have helped. In December 2017, NBN offered a temporary credit to retailers for acquiring 50 percent more Connectivity Virtual Circuit (CVC) per user and reducing the price of the Access Virtual Circuit (AVC) for 50-Mbps services.

Retailers in turn passed some of the savings on to their customers in the form of lower prices.

Average CVC per user continues to increase, rising from 1.52Mbps in December 2017 to 1.55Mbps in March 2018. This follows a 38 per cent increase in CVC per user in the quarter to December 2017.

Over time, consumers always have shifted to higher-speed tiers, in part because internet service providers have kept increasing speeds, in some cases virtually at rates consistent with Moore’s Law. But price reductions seem always to help.

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