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NBN Inducing Broadband Churn, According To Roy Morgan Report

Availability of NBN services is prompting many Australian broadband customers to switch service providers and others to get fixed broadband services for the first time, according to a new Roy Morgan Research report.

Morgan says 15 percent of homes in NBN service areas switched provider in the last 12 months, compared with nine percent of non-NBN homes. Also it says 11 percent of NBN Co’s 1.2 million residential customers at the end of 2016 had no fixed Internet a year ago.

Among non-NBN fixed broadband homes, only five percent connected for the first time in the last 12 months.

Roy Morgan says the rate of churn was much higher among NBN homes.

“Combined, a total of 26 percent of all NBN customers were up for grabs for Internet service providers in 2016, either through switching or joining the market – almost double the rate in non-NBN homes,” the company said.

Morgan CEO Michele Levine added: “The vast majority of switchers are likely to have used the NBN connection as a catalyst for choosing a new provider. However with many new retail providers able to operate in the NBN market alongside established ISPs, it will be interesting to see if the increased competition will mean higher switching rates long-term.” – Stuart Corner

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