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 December quarter, both communications spending and overall household consumption expenditure grew by 0.9 per cent.

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, December 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 December quarter, both communications spending and overall household consumption expenditure grew by 0.9 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 2011 to December 2016. It shows that since 2011, the proportion of internet subscribers with dial-up service connections has declined. Fibre to the premises subscriptions have grown strongly from less than 1 per cent to 11 per cent.

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

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

Data link: The composition of service technologies has changed

Since 2011, fibre to the premises subscriptions have grown strongly from less than 1 per cent to 11 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 December 2011 to December 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 December 2016 exceeded 82 per cent, almost double the proportion as at 2011.

Note: From December 2016, the ABS includes the previous ‘Less than 256kbps’ category as part of the ‘Less than 1.5Mbps’ category.

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

Data link: Trend towards higher internet speeds

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

•	This is a bar chart. The y axis shows ISPs offering other services (per cent). The x axis shows changes between December 2011 and December 2016 for VoIP, home telephone, mobile telephone, IPTV and naked DSL. The proportion of ISPs offering VoIP, mobile telephone and IPTV services has increased overall.

Source: ABS 8153.0 Internet Activity, Australia, Dec 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, mobile telephone and IPTV services has also increased overall.