Household expenditure on communications is falling

This is a line chart. The y axis shows the share of household disposable income (per cent). The y axis shows time from 2006 to 2015. Shows the share of disposable household income spent on communications services (telephone and internet) averages just under 4 per cent, and has tended to fall since the start of this decade.

Note: This publication uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. The HILDA Project was initiated and is funded by the Australian Government Department of Social Services (DSS) and is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute) at the University of Melbourne. The findings and views reported in this paper, however, are those of the author and should not be attributed to either DSS or the Melbourne Institute.

Excludes post.

Source: Source: BCR estimates from the Household Income and Labour Dynamics in Australia (HILDA) Survey.

Data link: Household expenditure on communications is falling

The share of household disposable income spent on communications services (telephone and internet) averages around 4 per cent, and has tended to fall since the start of this decade.

Although the overall spend has increased

This is a line chart and bar chart. The y axis shows the change in household final consumption expenditure (per cent). It shows while communications spending has fallen as a share of the household budget (see previous slide), the amount spent by households on communications has grown for most of the past decade, in real terms. In the March quarter, communications spending grew by 1.5 per cent, and total household consumption expenditure grew by 0.3 per cent.

Note: Changes do not adjust for quality adjustments e.g. faster processing

Source: ABS 5206.0 – Australian National Accounts: National Income, Expenditure and Product, March 2018, Table 8, Chain Volume Measures, Seasonally adjusted series.

Data link: Although the overall spend has increased

While communications spending has fallen as a share of the household budget (see previous chart), the amount spent by households on communications has grown for most of the past decade, in real terms. In the March quarter, communications spending grew by 1.5 per cent, and total household consumption expenditure grew by 0.3 per cent.

The composition of service technologies has changed

This shows a stacked bar chart. The y axis shows the percentage and the x axis shows time in six-month intervals from December 2012 to December 2017. It shows that since December 2012, the proportion of internet subscribers with dial-up service connections has declined. Fibre subscriptions have increased from 1 per cent to 21 per cent.

Note: From December 2016, the ABS has removed ‘dial-up’ from the survey.

Source: ABS 8153.0 Internet Activity, Australia, December 2017, Table 1.

Data link: The composition of service technologies has changed

Since December 2012, fibre subscriptions have increased from 1 per cent to 21 per cent.

Trend towards higher internet speeds

This is a stacked bar chart. The y axis shows subscribers in thousands. The x axis shows time in six-month intervals from June 2012 to June 2017. It shows that since 2012 there has been steady growth in the take up of internet subscriptions at higher internet speeds. The proportion of subscribers with speeds of 8mbps or greater in December 2017 exceeded 88 per cent, almost double the proportion as at 2012.

Note: From June 2017, the ABS does not report the ‘Less than 1.5Mbps’ and ‘1.5Mbps to less than 8Mbps’ category.

Source: ABS 8153.0 Internet Activity, Australia, December 2017, Table 2; BCAR Calculations

Data link: Trend towards higher internet speeds

There has been steady growth in the take up of internet subscriptions at higher internet speeds. The proportion of subscribers with speeds of 8 Mbps or greater in December 2017 exceeded 88 per cent, almost double the proportion as at 2012.

ISPs offer a range of services

This is a bar chart. The y axis shows ISPs offering other services (per cent). The x axis shows changes between December 2012 and December 2017 for VoIP, home telephone, mobile telephone, IPTV and naked DSL. The proportion of ISPs offering other services has plateaued over the recent years.

Source: ABS 8153.0 Internet Activity, Australia, December 2017, Table 4.

Data link: ISPs offer a range of services

The proportion of ISPs offering other services has levelled off in the recent years.