With the overwhelming majority of consumers now using of multiple communications technologies - most commonly a fixed-line telephone, a mobile phone and the internet - this report keeps track of Australia's rapidly changing communications environment.

These changes are a reflection of continuing technological developments, service innovation and increased consumer preferences for flexible communications.

At April 2010, 82 per cent of adult consumers with a fixed-line telephone used three or more communications services.

Portable technologies, including mobile telephony and wireless internet, have become particularly popular among Australians, with an increasing number of consumers moving away from fixed-line devices for voice services.

Young adults (aged 18–24) are leading this trend, with one in three now choosing not to connect a fixed-line telephone when they move out of the parental home. This figure has risen by almost 33 per cent in the past 12 months, with the highest incidence occurring among young adults living alone or in share households. In the wider Australian community, the proportion going ‘mobile-only’ for voice communications has reached 14 per cent, up from 10 per cent in the previous year.

However, despite the strong shift toward mobile technology, the fixed-line telephone maintains a solid presence in the Australian communications environment, strongly supported by older consumers, and by the use of the fixed line for internet connections. This report shows a strong association between age and fixed-line use, and in particular, the apparent reluctance by consumers aged over 35 to relinquish their fixed-line telephone service. This is seen most strongly among the over 55s, who maintain near-saturation levels of fixed-line telephone take-up, though the majority of these consumers also use a mobile phone now.

Amid declining fixed-line telephone call revenue, service providers are attempting to encourage consumers to retain their traditional home phone, offering multi-function touchscreen handsets and bundling arrangements that include lower cost, or free, local calls. Despite these efforts, the number of fixed-line telephone services in operation in Australia continues to drop, reflecting trends seen in most comparable countries.

In contrast, mobile phone take-up is rising across the population, encouraged by handset innovations, such as the smartphone and ipads, and increased affordability. The importance of mobile technology to the lifestyles of many Australians is underscored by the finding that a large proportion of mobile phone users feel that they need their mobile phone to juggle their work and social lives, and that the majority regard their phone as essential for their personal security. A large proportion of mobile phone users are now taking advantage of non-voice functions such as SMS, photography and internet access, a trend that is likely to increase with the rise in take-up and use of 3G mobile handsets and user-friendly larger screen smartphones.