By 2006 nearly half of all the Internet subscribers had moved to broadband. Dial-up in the business market was negligible by mid 2006. The broadband ISP market underwent significant changes during 2005 and 2006. The key development has been the aggressive charge by Telstra into the overall broadband market. However, Telstra’s strategies have also resulted in a sharp drop of ARPU and that is seriously affecting the more vulnerable competitors. With rapidly declining broadband ARPUs one of the few ways for resellers to survive in the broadband market is to move into the business market. In order to address the issue of dwindling ARPUs, ISPs must look for value-add opportunities including bundling, Web Hosting, Managed Firewalls and VPNs.
