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Expenditure per capita on telecommunications in Tasmania is generally slightly lower than for Australia as a whole. There are many reasons which contribute to lower expenditure than the national average, including

• Industry structure;
• Economic growth;
• Income and demographic structures; and
  
• Consequential service penetration and usage rates.

Total demand for telecommunications services in Tasmania is estimated to be worth approximately $450-600 million pa. The largest single purchaser of telecommunications services in Tasmania is the State Government.

(Source: Tasmanian Government Broadband Action Plan, June 2005 PDF 115.67kb).

By the end of the forecast period in 2011, fixed data services revenues are expected to more than triple in size to become the dominant market sector, accounting for 62.1% of all revenues. Over the same period, fixed voice services revenues are expected to decline in absolute terms to become only 13.6% of total revenues. Mobile revenues will more than double over the period to become 24.3% of total revenues.

Usage Figures

Internet usage

Internet usage in Tasmania is increasing, as is illustrated by the rise in households with home internet access. The proportion of households with internet Access has risen from 31% in 2001 to 49% in 2006. In 2006, 35% of households in Tasmania with internet access were connected to broadband, compared with 48% nationally. (Source: ABS catalogue 8146.0 2005-06)

Mobile phone usage

The penetration of mobile phones is high in the Australian market, with the number of mobile services in operation growing by 7% in 2006-06 to $19.7 million. The move to new technologies such as 3G and the resulting wider range of data services are expected to cause an expansion of data applications beyond the short message service (SMS). (Source: Communications Infrastructure and Service Availability in Australia 2006-07)