Household expenditure on communications is falling
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.
Source: Source: BCR estimates from the Household Income and Labour Dynamics in Australia (HILDA) Survey.
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 1.3 per cent, compared with overall household consumption expenditure which grew by only 0.5 per cent.
The composition of service technologies has changed
Note: From December 2016, the ABS has removed ‘dial-up’ from the survey.
Source: ABS 8153.0 Internet Activity, Australia, Dec 2016, Table 1.
Since December 2011 there has been steady growth in the take up of internet subscriptions at higher internet speeds, and this accelerated from mid-2012. The proportion of subscribers with speeds of 8mbps or greater in December 2016 exceeded 82 per cent, almost double the proportion as at 2011.
ISPs offer a range of services
Source: ABS 8153.0 Internet Activity, Australia, Dec 2016, Table 4.