The rate of ISP switching among NBN homes is well above non-NBN houses, as people use the jump as an opportunity to shop around.
In the last 12 months, 15% of customers on the NBN switched ISPs, as opposed to the 9% of non-NBN homes. The NBN is also shown to have brought more Australians onto the internet, with 11% of NBN activations being customers who had never had fixed internet connections before, as opposed to the 5% of non-NBN homes.
It’s a far cry from everyone being connected to the NBN by 2016, which was what was promised, but at the end of last year there were 1.2 million Australians connected, and just over a tenth of those customers previously didn’t have any fixed internet. This is probably due to a focus on rural areas, though — with two Sky Muster satellites floating above us, the fixed wireless portion of the NBN has been progressing faster than the rest of the rollout.
“Only a small number of NBN homes would already be switching between NBN providers,” said Michele Levine of Roy Morgan Research. “The vast majority of switchers are likely to have used the NBN connection as a catalyst for choosing a new provider. However with many new retail providers able to operate in the NBN market alongside established ISPs, it will be interesting to see if the increased competition will mean higher switching rates long-term.”
[Via Roy Morgan Research]
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