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Growth in Australian Broadband Takes off as New Players Stake their Claim (May 2003)

14/7/2003
Broadband usage tops the Million Mark in Australia


Sydney, May 22, 2003: The number of Broadband users in Australian homes has grown 150
per cent since April last year, with one million Australians now accessing the Internet by
Broadband, according to Nielsen//NetRatings, the global standard for Internet audience
measurement and analysis.

Between April ’02 and April ’03 the number of at home broadband users has grown rapidly to almost 15%. “Much of the growth in the early stages of 2002/03 can be attributed to a significant investment in advertising by Telstra commencing in February ‘02” said Markus von der Luehe, senior analyst, Nielsen//NetRatings Australia.

“In 2003, the landscape has begun to change with more players launching into the market –
the recent launch of the AOL7 service is an example. Several of these players are now starting to erode Telstra’s share of the advertising voice in this market signalling the start of a period of increased competition.”

According to sister company Nielsen Media Research, advertising spend on main media by Broadband ISP’s has grown from just over $3 million in Q1 2002 to $6.27 million in Q1 2003,
an increase of 107%. Telstra’s share of this spend has fallen from 82 per cent to 38 per cent
in this time.
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