Household expenditure on communications is falling

This is a line chart. The y axis shows the share of household gross income (per cent). The y axis shows time from 2006 to 2014. Shows the share of gross household income spent on communications services (telephone and internet) averages around 4.5 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 Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) and is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute). The findings and views reported in this paper, however, are those of the author and should not be attributed to either FaHCSIA or the Melbourne Institute.

Excludes post.

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 gross household income spent on communications services (telephone and internet) averages around 4.5 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 September quarter, it increased by 2.7 per cent in real terms compared with 0.4 per cent for all household consumption expenditure.

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

Excludes post.

Source: ABS 5206.0 – Australian National Accounts: National Income, Expenditure and Product, September 2016, 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 June quarter, it increased by 1.3 per cent in real terms compared with 0.4 per cent for all household consumption expenditure.

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 June 2011 to June 2016. It shows that since 2011, the proportion of internet subscribers with dial-up service connections has declined from 5 per cent to 1 per cent. Fibre to the premises subscriptions have grown strongly, while subscribers to DSL and mobile wireless have remained consistent.

Source: ABS 8153.0 Internet Activity, Australia, June 2016, Table 1.

Data link: The composition of service technologies has changed

Since 2011, the proportion of internet subscribers with dial-up service connections has declined from 5 per cent to less than 1 per cent. Fibre to the premises subscriptions have grown strongly, while subscribers to DSL and mobile wireless have remained consistent. By June 2016, 99 per cent of internet subscribers had broadband connections.

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 2011 to June 2016. It shows that since 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 June 2016 exceeded 83 per cent, almost double the proportion as at 2012.

Source: ABS 8153.0 Internet Activity, Australia, June 2016, Table 2.

Data link: Trend towards higher internet speeds

Since June 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 June 2016 exceeded 83 per cent, almost double the proportion as at 2011.

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 June 2011 and June 2016 for VoIP, home telephone, mobile telephone, IPTV and naked DSL. It shows that the proportion of ISPs offering other services has grown over recent years. The proportion offering VoIP, home telephone, IPTV and naked DSL services has also increased since 2011. Mobile telephone services provision spiked in 2013.

Source: ABS 8153.0 Internet Activity, Australia, June 2016, Table 4.

Data link: ISPs offer a range of services

The proportion of ISPs offering other services has grown over recent years. The proportion offering VoIP, home telephone, IPTV and naked DSL services has also increased since 2011. Mobile telephone services provision spiked in 2013. As at June 2016, 90 per cent of internet services providers offered additional services.