Wireless connections exceed fixed line connections, official data shows

The number of mobile wireless internet connections has exceeded the number of DSL connections but fixed networks will remain popular over the long term according to experts.

The figures, from the Australian Bureau of Statistics, come as critics continue to oppose the National Broadband Network, saying rolling out an expensive fixed-line network is less economical than constructing fixed wireless hotspots.

The numbers show mobile wireless broadband connections, excluding mobile handsets, accounted for 44% of all internet connections, while DSL connections accounted for 41%.

The number of internet subscribers rose by 4.4% to 10.9 million in the half year to June 2011, up from 10.4 million in December 2010.

The data, which is collected from ISPs with more than 1000 subscribers, found that 95% of connections were broadband, with 87% of Australians accessing speeds 1.5Mbps or faster.

Mobile wireless access was the fastest growing technology, rising from 4.2 million in December 2010 to 4.8 million in June 2011.

The figures come as the NBN continues to roll out across the country, with many ISPs already offering services.

Opponents continue to point to figures, including those released by the ABS, as evidence that consumers want wireless instead of fixed-line services.

Ovum research director David Kennedy says although the number of wireless connections has continued to grow so has the number of fixed-line connections.

“Fixed connections are growing, although wireless connections are growing faster,” he says.

“There are of course households only using wireless connections but we need to be careful about the numbers being quoted.

“You’ll see that 13% are not using a fixed voice connection but we know that roughly half of those people have a fixed connection via Naked DSL or access to cable networks.

“The amount of truly mobile-only households is smaller than most people think, however we believe it will double over the next five years.”

While Kennedy says there is clearly growing demand for mobile broadband – especially as the hunger for cheap wireless bandwidth continues to grow – that doesn’t necessarily mean fixed connections will drop in number.

“All the operators are building infrastructure to cope with the growth in wireless but it doesn’t mean that people will drop fixed networks,” he says.

“If you compare the packages people can get you will see that if you look at the data allowances on the mobile networks the fixed networks maintain a big, big advantage.”