Wholesale NBN services as of 31 March 2023
More good news for Aussie, with net additions increasing by almost 25,000.
That said, it wasn’t just ABB that continued to increase net additions – Superloop increased theirs by an impressive 56k, while Vocus recorded an increase of 32k. The three telco leaders continue to haemorrhage customers – particularly TPG, losing more than 40,000 services over the reporting period. Collectively, the heavyweights dropped 58,000 services.
Despite Superloop performing well, I still have real questions around their sustainability as a company. This is where Aussie’s moat is starting to shine. Trancer touched on this earlier – poor old Superloop have had to drop costs to keep customers. This looks good in terms of net additions but they chew through capital like there is no tomorrow. Aussie have refused to offer cheap deals to keep customers, preferring that these services churn elsewhere – it is not where the attractive margins are after all.
Superloop burnt 21m in H1, while ABB made an 8.5m profit. Let’s hope we see more of the same in H2 (for Aussie that is; I have nothing against Superloop).
Perhaps not surprisingly with inflation, the 25mbps tier increased since the last report (by around 125,000 services, around 16% of the total wholesale market). Most of these services appear to have downgraded from 50mbps (which lost 99,000 services), although some have upgraded from 12mbps.
That said, 250, 500, ultrafast and 1000mbps tiers all recorded increases in services. This is great news for Aussie, they dominate this end of the market as demonstrated below:
So while slower NBN plans have grown in popularity over the last three months, so to have the high speed tiers – and this is only good news for Aussie noting their dominance at this end of the market.