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Internet Service Providers in Australia - Market Research Report (2014-2029)

Misaki Iishi Misaki Iishi Melbourne, Australia Last Updated: July 2024 ANZSIC J5911

Revenue

$6.7bn

2024-25

$6.7bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

9,528

Businesses

1,384

Wages

$X.Xbn

Internet Service Providers in Australia industry analysis

The Internet Service Providers industry has suffered from declining revenue over the past few years despite consumers' increased reliance on the internet. Accelerated data usage from consumers and businesses has elevated internet service prices, with leading internet service providers investing in infrastructure upgrades to deliver faster-speed broadband services. The Internet Service Providers industry's revenue and profitability have been constrained as the market approaches saturation. Technological advancements in mobile internet capabilities have attracted consumers, threatening the long-term viability of this industry's services. Overall, revenue has dropped at a projected 4.2% to $6.7 billion through the end of 2024-25.

Trends and Insights

  • Heightened cost-of-living pressures reduce consumers' spending on internet services. ISPs are facing intense price competition as the market is reaching saturation.
  • NBN connections have taken over as cable and DSL diminishes. The NBN rollout has spread across Australia and facilitated the most efficient internet products for providers.
  • The closer to population centres, the better for ISPs. Proximity to downstream subscribers also allows for easier accessibility to businesses.
  • The strong growth of mobile carriers is ramping up competition for ISPs. Mobile carriers are improving their data limits and download speeds.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 4.2 % over the past five years, to reach an estimated $6.7bn in 2024.

Trends and Insights

ISPs face fierce internal competition

  • Many new ISPs have entered the Internet Service Providers industry in recent years, including sole proprietors and small ISPs. The rising number of enterprises has fuelled internal competition, leading to intense price competition.
  • Additional trends and insights available with purchase
Internet Service Providers in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

A revenue rebound is on the books as inflationary pressures are set to ease

  • Online connections will continue to be critical for businesses, governments and household consumers. Government agencies and companies will continue to deliver services through online platforms and enhance operational efficiencies using the internet.

Biggest companies in the Internet Service Providers in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
Telstra
2,040.0
TPG Telecom
1,677.9
SingTel Optus
743.7

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Internet Service Providers in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Digital subscriber line (DSL), NBN 12Mbps and NBN 25Mbps. Digital subscriber line (DSL) is the largest segment of the Internet Service Providers in Australia.

Trends and Insights

The NBN 12Mbps wholesale speed is an inexpensive option for price-conscious consumers

  • NBN 12Mbps plan is the basic NBN plan with a maximum download speed of 12Mbps. NBN 12Mbps is the entry-level speed tier and typically the least expensive NBN plan ISPs offer.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The Internet Service Providers industry retails Internet services to businesses, households and governments, including providers who own or lease telecommunications infrastructure. Internet services are provided through dial-up, integrated services, digital networks and fixed broadband connections. The Internet Service Providers also offers internet-reliant telecommunications services, including voice-over-internet protocol (VoIP).

What's included in this industry?

NBN 12MbpsNBN 25MbpsNBN 50MbpsNBN 100MbpsDigital subscriber line (DSL)Cable networksDial-up networksSatellite networksFixed-wireless networks

Companies

TelstraTPG TelecomSingTel Optus

Purchase this report to view all 5 major companies in this industry.

Related Terms

FIBRE-TO-THE-PREMISES (FTTP)ISPVOICE OVER INTERNET PROTOCOL (VOIP)TELCO

Industry Code

ANZSIC 2006

ANZSIC 5910 - Internet Service Providers in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Heightened cost-of-living pressures reduce consumers' spending on internet services. ISPs are facing intense price competition as the market is reaching saturation.

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

NBN connections have taken over as cable and DSL diminishes. The NBN rollout has spread across Australia and facilitated the most efficient internet products for providers.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The closer to population centres, the better for ISPs. Proximity to downstream subscribers also allows for easier accessibility to businesses.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The strong growth of mobile carriers is ramping up competition for ISPs. Mobile carriers are improving their data limits and download speeds.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Telstra has dominated other ISPs. The firm has resources available as the most significant and oldest company in the industry. The breadth of products and services keeps them...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Telstra's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of TPG Telecom's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of SingTel Optus's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Telstra, and factors influencing its performance in the industry
  • Description and key data for TPG Telecom, and factors influencing its performance in the industry
  • Description and key data for SingTel Optus, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The ACCC is fiercely monitoring and dealing fines to significant service providers. Internet service providers must maintain advertised speeds and comply with competition law...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Wages have elevated as ISPs offer competitive salaries to attract and retain skilled labourers. Skilled labourers with technical knowledge and skills are essential to provide...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Internet Service Providers industry in Australia in 2024?

The market size of the Internet Service Providers industry in Australia is $6.7bn in 2024.

How many businesses are there in the Internet Service Providers in Australia industry in 2024?

There are 1,384 businesses in the Internet Service Providers industry in Australia, which has grown at a CAGR of 3.1 % between 2019 and 2024.

Has the Internet Service Providers industry in Australia grown or declined over the past 5 years?

The market size of the Internet Service Providers industry in Australia has been declining at a CAGR of 4.2 % between 2019 and 2024.

What is the forecast growth of the Internet Service Providers industry in Australia over the next 5 years?

Over the next five years, the Internet Service Providers industry in Australia is expected to grow.

What are the biggest companies in the Internet Service Providers market in Australia?

The biggest companies operating in the Internet Service Providers market in Australia are Telstra, TPG Telecom and SingTel Optus

What does the Internet Service Providers in Australia include?

NBN 12Mbps and NBN 25Mbps are part of the Internet Service Providers industry.

Which companies have the highest market share in the Internet Service Providers in Australia?

The company holding the most market share in Australia is Telstra.

How competitive is the Internet Service Providers industry in Australia?

The level of competition is high and increasing in the Internet Service Providers industry in Australia.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Wireless Telecommunications Carriers in Australia
  • Telecommunications Resellers in Australia

Complementors

  • Wired Telecommunications Network Operation in Australia
  • Cloud Hosting and Data Processing Services in Australia

International industries

  • Global Internet Service Providers
  • Internet Service Providers in the US
  • Wireless Internet Service Providers in the US
  • Internet Service Providers and Web Search Portals in New Zealand
  • Internet Service Providers in the UK

View all industries in Australia

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.