# Australia

Mobile Fixed
November 8, 2017
Based on Q2-Q3 2017 data

## Introduction

Thanks to an early adoption of gigabit LTE, Australia is home to some of the fastest individual Speedtest® results we’ve ever seen. And the country’s mean download speed ranks it a solid fifth in the world during Q2-Q3 2017, behind Singapore and ahead of the United Arab Emirates. Australia ranks tenth for mean upload speed, between the Netherlands and Kuwait. Australian carriers have all the necessary “ingredients” for delivering exceptional user experience with spectrum portfolios large enough to cover a continent that’s roughly the size of the U.S., but serving a population one-tenth the size. And they are making the most of that advantage.

In January, Telstra launched the world’s first commercial gigabit LTE network. They’ve reached that milestone by combining three advanced LTE features: 4x4 Multiple-Input Multiple-Output (MIMO), Three Carrier Aggregation (3CA) and higher order modulation (256QAM). On the uplink, Telstra’s new network capability also uses 64QAM and Two Carrier Aggregation (2CA) for a peak upload speed of up to 150Mbps. The combination of superfast speeds with an interesting amalgam of very urban coastlines featuring gigabit class LTE in major metro areas and a vast rural interior makes the market interesting enough to serve as test ground for some of our app builds.

Other top providers are also showing improved network configurations. Vodafone runs an efficient frequency-division duplexing (FDD) LTE network leveraging 850 MHz, 1800 MHz and 2100 MHz spectrum bands. Optus is the only major carrier in Australia operating on both FDD and time-division duplexing (TDD) frequency bands, combining 700 MHz, 1800 MHz, 2100 MHz and 2600 MHz FDD bands with 2300 MHz TDD band. In addition, Optus holds a significant amount of 3.5 GHz spectrum, which could be a valuable asset for delivering a future 5G experience.

## Country Speeds

Between Q2-Q3 2016 and Q2-Q3 2017, the average mobile download speed in Australia improved by 21.2% to 44.20 Mbps. Average upload speed during the same period were 14.32 Mbps, a 10.2% gain over the same period the year before.

## Fastest Carriers

This year Ookla® developed Speed Score to more accurately reflect the full breadth of consumer experience on a given network. Speed Score incorporates overall network speed performance for both download and upload speed. It’s a comprehensive metric that combines all factors that matter to a good network experience into a single score.

Telstra claimed victory over the other two top providers in Australia with a Speed Score of 45.28 on modern devices during Q2-Q3 2017. Vodafone comes in second with a Speed Score of 39.30, while Optus ranks third at 33.57.

### Speed Score

When analyzing fastest carriers, we consider all carriers with 3% or more of total test samples in the market for the period. We then determine the fastest carrier using Speed Score which incorporates a measure of each provider’s download and upload speed to rank network speed performance (90% of the final Speed Score is attributed to download speed and the remaining 10% to upload speed). The Speed Score uses a modified trimean to demonstrate the download and upload speeds that are available across a provider’s network. We take speeds from the 10th percentile, 50th percentile (also known as the median), and 90th percentile, and combine them in a weighted average using a 1:2:1 ratio, respectively. We place the most emphasis on the download speeds and median speeds as those represent what most network providers’ customers will experience on a day-to-day basis.

## Peak Hours Speeds

The network crowding that occurs during peak use times can significantly slow even the fastest carriers on any continent. As a result, the Australian Competition & Consumer Commission calls on providers to reveal information about speeds during peak hours (7-11 p.m.) and off-peak hours (all other hours of the day). Using Speedtest data, we performed the same analysis and found the following:

City speeds based on average speeds for all results. Carrier speeds based on Speed Score for all results.
Time of Day | Download (Mbps) | Upload (Mbps) | Fastest Carrier | Speed Score
All hours | 44.20 | 14.32 | Telstra | 45.28
Peak (7-11 p.m) | 40.32 | 13.20 | Telstra | 41.61
Off-peak | 46.07 | 14.83 | Telstra | 46.47

Looking at data from all carriers on all devices, mean download speed in Australia is 8.8% slower during peak usage times than the country’s overall average download speed and 12.5% slower than off-peak hours. Mean upload speed during peak hours is 7.8% slower than average and 11.0% slower than during off-peak times.

Telstra remains the fastest carrier on modern devices for Australia during peak and off-peak hours, though their Speed Score slips 8.1% during peak hours compared with their overall average. Telstra’s peak performance is 10.5% slower than their off-peak score.

## Speedtest Coverage

The maps above demonstrate how Australia’s unique landscape and considerably low population density impact Speedtest results. Though the specific coverage varies by carrier, it is no surprise to see largest footprints in Australia’s main hubs along the country’s coasts. Fastest carrier Telstra shows the densest pattern of results. Though Vodafone is the second fastest carrier in Australia, Optus displays a wider dispersion of test results.

## Fastest Carriers by City

#### Q2-Q3 2017

City speeds based on average speeds for all results. Carrier speeds based on Speed Score for modern devices.
City | Download (Mbps) | Upload (Mbps) | Fastest Carrier | Speed Score
Adelaide, South Australia | 52.75 | 15.70 | Telstra | 60.80
Brisbane, Queensland | 56.60 | 20.89 | Telstra | 64.46
Canberra, Australian Capital Territory | 39.84 | 12.58 | Telstra | 43.39
Darwin, Northern Territory | 43.75 | 20.18 | Telstra | 45.85
Geelong, Victoria | 57.93 | 16.89 | Vodafone | 69.86
Gold Coast, Queensland | 42.65 | 16.62 | Telstra | 51.59
Hobart, Tasmania | 49.02 | 22.68 | Telstra | 51.99
Melbourne, Victoria | 42.70 | 16.55 | Telstra | 42.13
Newcastle, New South Wales | 46.24 | 18.14 | Vodafone | 68.95
Perth, Western Australia | 37.48 | 12.77 | Vodafone | 37.95
Sydney, New South Wales | 40.27 | 12.98 | Telstra | 43.76
Wollongong, New South Wales | 46.18 | 19.99 | Vodafone | 56.71

Of the 12 most populated cities we analyzed in Q2-Q3 2017, Geelong, Victoria had the fastest average mobile download speed on all devices with 57.93 Mbps, while Brisbane and Adelaide were close behind. On the opposite end, the city with the slowest average download speed was Perth which was more than 20 Mbps slower than Geelong. Sydney and Canberra round out the bottom three with the second and third slowest download speeds, respectively.

The fastest upload speeds we saw in Q2-Q3 2017 were in Hobart, Tasmania. Brisbane, Darwin, Wollongong and Newcastle hold the second, third, fourth and fifth spots. The cities with the slowest upload speeds were Canberra and Perth, coming in last and second to last, respectively. Both of these cities also finished in last place for download speed.

Telstra claims the title of fastest carrier in eight of the largest cities in Australia based on Speed Score on modern devices. Vodafone comes in second by securing four of the 12 remaining cities.

## Conclusion

Australia’s fast mobile broadband is likely to get faster with all three top carriers working to improve their networks. Telstra comes out strong with the fastest Speed Score for Australia as a whole and during both peak and off-peak hours. Telstra also won eight of the 12 cities we analyzed. Vodafone showed the strongest speeds in four cities. We’re interested to see if Optus leverages their 3.5 GHz spectrum for 5G, which would increase their speeds considerably. Regardless, we will continue to watch this market for exciting innovations.

Editor’s Note: This report was updated on November 20, 2017 with a clarification to the Fastest Carriers by City section.

## Introduction

Speedtest® data shows fixed broadband speeds are significantly slower than mobile speeds in Australia. Specifically, the mean download over fixed broadband is 45.4% slower than over mobile and uploads on fixed broadband are 40.8% slower than those on mobile. The country ranks 56th in the world for download speed, between Guam and the United Arab Emirates, and 73rd for upload speed, between Croatia and Fiji.

## Country Speeds

Data from Speedtest Intelligence shows the average fixed download speed in Australia during Q2-Q3 2017 was 24.12 Mbps, 6.3% faster than that reported in the U.S during Q1-Q2 2017. Average upload speed in the same period is 8.48 Mbps.

## Fastest Providers

This year Ookla® developed Speed Score to more accurately reflect the full breadth of consumer experience on a given network. Speed Score incorporates overall network speed performance for both download and upload speed. It’s a comprehensive metric that combines all factors that matter to a good network experience into a single score.

Based on Speedtest Intelligence data, Optus is the fastest provider in Australia with a Speed Score of 24.16 during Q2-Q3 2017. Telstra and TPG take second and third place, respectively, with Speed Scores of 22.78 and 21.01. iiNet is in fourth place with 19.83, while iPrimus places last with 15.89.

### Speed Score

When analyzing fastest ISPs, we consider all ISPs with 3% or more of total test samples in the market for the period. We then determine the fastest ISP using Speed Score which incorporates a measure of each provider’s download and upload speed to rank network speed performance (90% of the final Speed Score is attributed to download speed and the remaining 10% to upload speed). The Speed Score uses a modified trimean to demonstrate the download and upload speeds that are available across a provider’s network. We take speeds from the 10th percentile, 50th percentile (also known as the median), and 90th percentile, and combine them in a weighted average using a 1:2:1 ratio, respectively. We place the most emphasis on the download speeds and median speeds as those represent what most network providers’ customers will experience on a day-to-day basis.

## Peak Hours Speeds

The network congestion that occurs during peak use times can significantly slow even the fastest ISPs. As a result, the Australian Competition & Consumer Commission calls on providers to reveal information about speeds during peak hours (7-11 p.m.) and off-peak hours. Using Speedtest data, we performed the same analysis and found the following:

City speeds based on average speeds for all results. ISP speeds based on Speed Score for all results.
City | Download (Mbps) | Upload (Mbps) | Fastest ISP | Speed Score
All hours | 24.12 | 8.48 | Optus | 24.16
Peak (7-11 p.m) | 21.96 | 7.70 | Telstra | 21.00
Off-peak | 25.75 | 9.08 | Optus | 27.74

As expected, fixed broadband speeds in Australia are slower during peak times with a 9.0% decline in mean download speed and a 9.2% decline in upload speed compared to overall performance and a 14.7% decline in mean download speed and a 15.2% decline in upload speed compared to off-peak performance. Off-peak speeds are faster than overall speeds with an increase of 6.8% in mean download speed and 7.1% in upload speed.

We also see that Telstra is faster than Optus during peak hours.

## National Broadband Network Analysis

About half of Australians, over 2 million homes, now have access to the National Broadband Network (NBN). This government initiative aims to “give all Australians access to broadband over a range of technologies, including fibre, fixed wireless and satellite.” Once a home has access to the network, the residents have 18 months to decide whether to connect or to discontinue service entirely. NBN acts as a wholesaler, charging ISPs access fees and additional fees for increased bandwidth.

In theory, NBN should provide service parity to all users, but as seen above, speeds do differ by ISP. There are four potential reasons for this:

- Consumers can choose from different speed tiers. The CEO of NBN Co has accused ISPs of opting for quantity over quality in focusing on price to attract the largest number of customers rather than on providing the best speeds.
- Available access technology varies with some areas being served by a variety of fiber architectures — from fiber to the node (FTTN) to fiber to the premises (FTTP) — and people who live outside the fiber network are served by a combination of fixed wireless and satellite connections. The NBN will be adding G.fast technology to fiber to the curb (FTTC) and fiber to the building (FTTB) networks starting in 2018.
- The quality of the ISP’s edge network, which serves as the connection between the worldwide web and the NBN, can also affect average speeds.
- One final factor that affects broadband speeds is the equipment in people’s homes. This is not subject to regulation, but a slow router or bad Wi-Fi setup can severely hinder individual internet speeds.

Regardless, the government of Australia states, “Under the Government’s Statement of Expectations, the NBN network must deliver a minimum peak wholesale download speed of 25 megabits per second (Mbps) to all premises and at least 50 Mbps to 90 per cent of all fixed-line services as soon as possible.”

## Speedtest Coverage

Speedtest results for fixed broadband in Australia shows a relatively consistent pattern, both in terms of distribution and ISP presence. Following the same trend we’ve seen for mobile, major cities and the surrounding urban areas are evenly covered by all ISPs. As a result of the heavy competition in these areas, residents have more options of service. The maps above suggest iiNet and Telstra’s reach is slightly larger than others, however only by a pinch. TPG has the smallest area of Speedtest results. In Tasmania, results are sparser than they are on the mainland, with iiNet and Telstra showing the best coverage on the island.

## Fastest ISPs by City

#### Q2-Q3 2017

City speeds based on average speeds for all results. ISP speeds based on Speed Score for all results.
City | Download (Mbps) | Upload (Mbps) | Fastest ISP | Speed Score
Adelaide, South Australia | 21.93 | 10.74 | TPG | 31.09
Brisbane, Queensland | 35.08 | 23.56 | Optus | 49.19
Canberra, Australian Capital Territory | 32.47 | 14.12 | iiNet | 35.21
Darwin, Northern Territory | 29.62 | 13.89 | iiNet | 34.34
Geelong, Victoria | 67.05 | 22.15 | iiNet | 94.26
Gold Coast, Queensland | 32.17 | 9.07 | Optus | 91.37
Hobart, Tasmania | 27.25 | 11.74 | Telstra | 27.80
Melbourne, Victoria | 31.63 | 20.58 | Spirit | 44.29
Newcastle, New South Wales | 33.97 | 14.74 | MyRepublic | 57.36
Perth, Western Australia | 17.90 | 7.59 | TPG | 28.44
Sydney, New South Wales | 30.03 | 16.27 | MyRepublic | 49.18
Wollongong, New South Wales | 33.72 | 19.78 | MyRepublic | 94.31

Looking at fixed broadband speeds in 12 of Australia’s most populated cities, the fastest mean download speed is found in Geelong, where iiNet started major network improvements as early as 2014. The city boasts an average of 67.05 Mbps — nearly doubling averages in any other city we analyzed. As this emerging gateway city has seen growth in numerous sectors in recent years, our numbers suggest fixed broadband performance is also exceeding expectations. The second fastest speeds are in Brisbane, Queensland and third fastest in Newcastle, New South Wales. Perth, South Australia and Adelaide, Western Australia fall into last and second to last place, respectively.

While Optus is fastest in the two cities in Queensland, MyRepublic takes all three cities in New South Wales. Victoria is split between iiNet and Spirit. Overall, iiNet and MyRepublic tie by taking fastest provider title in three cities apiece Optus and TPG each take two cities. Spirit and Telstra hold on with one city each. This distribution of fastest provider title among many ISPs demonstrates the vast amount of competition in these most populated Australian cities.

## Conclusion

Despite efforts by the Australian government, fixed broadband speeds in the country are not fast. It will be interesting to see if the rapid onboarding of homes to the National Broadband Network and the 2018 addition of G.fast technology to the NBN mix will markedly improve performance or whether consumers and ISPs will opt for the slower tiers of service.

The broad field of competitors in the fixed broadband market should be a win for consumers with different ISPs show different strengths. Optus came out on top for overall speeds and winning two of the 12 cities we analyzed. Telstra showed the fastest speeds in the country as a whole during valuable peak hours but was only the fastest provider in one city. iiNet and MyRepublic were each fastest in three of the 12 largest cities, and MyRepublic dominated those in New South Wales.

Editor’s note: Updated on November 8, 2017 to correct for typos in the Fastest Providers and Peak Hours Speeds sections.