The ACCC’s latest NBN Wholesale Market Indicators Report shows that the big three telcos are fast losing share to smaller players who offer flexibility and competitive pricing.

Over the March quarter, the market share of Telstra, TPG and Optus dropped by 0.9 per cent, representing 58,000 services collectively.

Individually, this saw all three lose market share: Telstra still commands 42 per cent, TPG has 22 per cent of customers, and Optus hold 13.1 per cent.

Vocus jumped 0.3 per cent, adding 33,000 services in the three months, to reach 7.5 per cent market share – its highest yet.

Smaller providers, led by Aussie Broadband, Superloop and Southern Phone, now account for 15.4 per cent of the market, adding 52,000 services during the quarter.

“The growing competition in the broadband market is good news for consumers as it encourages more choice and competitive pricing for internet services,” ACCC Commissioner Anna Brakey said.

“We have seen sustained market growth quarter on quarter among the smaller broadband providers, reinforcing their presence in the market and the continued demand from consumers for alternative service offerings.”

The number of residential NBN services increased by more than 27,000, or 0.3 per cent, in the March quarter, after a slight decline of 0.1 per cent in the December 2022 quarter.