Up to speed: Telstra and Optus race ahead

Summary:The latest data from ZDNet's Broadband Speedtest not only shows how Optus is vying with Telstra for leadership in the broadband speed stakes, but also how the two of them are way ahead of the pack.

All change!

What's clear from this wealth of data is how quickly the dynamics are changing — speeds are increasing, market share is shifting and mobility is rising, month by month. This has to be encouraging for the user, who should be experiencing a noticeable improvement in service. Of course, the data also suggests there is a huge variety in the quality of service, with some providers showing lower speeds and higher TTFB than others. It demonstrates the need to maintain quality if providers want to stand a chance in such a cut-throat market.

Price reductions will bring short-term gains, but is such a tactic sustainable? Customers will continue to expect quality improvements. Dodo, for example, increased its share while increasing speed from an average of 3.7Mbps to 4.4Mbps, and while reducing TTFB — clearly an issue — from an average 1343 milliseconds down to 918 milliseconds. Compare that to Optus. Its TTFB and speeds are better, but Optus' share of speed tests fell 2 per cent over the six months of the analysis, during which time TTFB increased from an average of 625 milliseconds in May to 690 milliseconds in October (all over fixed connections).

These are still a lot better than the Dodo figures, but Dodo has always sold on price. Today, these figures seem to show, price is important, but it needs to be matched with faster speeds and lower TTFB if you are a service provider that wants to be in with a fighting chance.

Topics: Broadband, NBN, Optus, Telcos, Telstra

About

Phil Dobbie has a wealth of radio and business experience. He started his career in commercial radio in the UK and, since coming to Australia in 1991, has held senior marketing and management roles with Telstra, OzEmail, the British Tourist Authority and other telecommunications, media, travel and advertising businesses.

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