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A new report released by the Bureau of Communications and Arts Research (BCAR) has forecast that 98 per cent of Australian households will require broadband speeds of up to 49 megabits per second (Mbps) in 2026.

The report, Demand for fixed-line broadband in Australia, states that only two per cent of households will require more than 49Mbps to meet their usage requirements eight years from now.

The BCAR modelling suggests demand for data will increase substantially in coming years, growing from 95GB of downloads per month in 2016 to 420GB per month in 2026.

Households accessing video over their internet connection will generate more than half of the forecast growth in data downloads.

The report identified household composition, demographic changes, technology developments and adoption as the key drivers for increasing demand for both bandwidth and data.

Today, the average NBN connection downloads just under 200GB of data per month – almost 100 times as much as the average downloaded over mobile devices (at around 2GB per month).

According to Minister for Communications, Mitch Fifield, the Australian Government’s rollout of the NBN will ensure 90 per cent of the NBN fixed-line footprint will deliver download speeds above 50Mbps, and all premises will be able to receive peak wholesale speeds of at least 25Mbps by 2020.

“Today, Australians are using between a third and a half of the NBN’s capacity for entertainment services such as on-demand video. Netflix recommends a connection speed of just 5Mbps to stream high-definition video, and 25Mbps to stream large‑screen 4K video,” Mr Fifield said. 

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