Telstra is facing increasing competition for broadband customers across regional Australia because of the rollout of the $49 billion national broadband network.
The Australian Competition and Consumer Commission's fourth quarterly report on the NBN wholesale market has found that telecom companies, including TPG Telecom, Optus and Vocus are expanding in regional areas.
"While still early days in the acquisition of services over the NBN, it is pleasing to note that competitors are making inroads into Telstra's traditional dominance of broadband services in regional areas," ACCC chairman Rod Mr Sims said on Thursday.
The report says competitors to Telstra now provide 47 per cent of NBN services to people in regional areas, which is considerably more than their traditional customer share in these areas, he said.
A Telstra spokesman acknowledged that the NBN is transforming the market.
More than 70 per cent of the NBN installed by last month was in regional and rural areas, with a total 5.4 million homes and businesses expected to be connected by June 30.
The rollout is scheduled to be completed in 2020.
In metropolitan areas, Telstra's share of NBN services at the end of December was roughly the same as its traditional market share of about 41 per cent.
The top four acquirers of NBN access services are still Telstra, TPG, Optus and Vocus, according to the ACCC report.
