Penetration in the fixed-line market has been falling at an increasing rate over the past five years. A major reason for this is the dominance of the mobile segment and the growth of mobile broadband. The market is predicted to further decline over the next few years as both mobile and mobile broadband penetration continue to increase.
There has been some consolidation in the market through the merger of the key players VHA and TPG, as also a number of acquisitions involving fixed-line suppliers. The second-tier market continues to grow strongly although it has eased off to some degree.
Within the Australian fixed broadband market, there is a dynamic shift among customers to fibre networks. This infrastructure is being built out by nbn (rebranded from NBN Co in 2015), the company responsible for deploying the National Broadband Network (NBN) which is based on a multi-technology mix including VDSL, fibre, HFC, fixed wireless, and satellite. The DSL sector will steadily shrink as customers are migrated to the NBN, while subscribers on HFC infrastructure will continue to be provided by existing cable within the NBN’s multi-technology mix.
The mobile market is dominated by the three MNOs Telstra, Optus, and TPG Telecom. These offer LTE services on a wholesale basis, thus encouraging growth in the LTE sector, while also deploying services based on 5G. The sector is supported by a significant number of MVNOs, including amaysim, Kogan Mobile,Aldi Mobile, Ovo Mobile, and Boost Mobile.
BuddeComm notes that the pandemic continues to have a significant impact on consumer spending due to pressure from the financial effects of large-scale job losses and the consequent restriction on disposable incomes. Network operators, too, are likely to exercise caution and scale back on discretionary capital expenditure. However, due to the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.
Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.
The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.
Vocus Group agrees to $3.5 billion takeover offer from a consortium comprising MIRA and Aware Super;
DITRDC consults on draft standards, rules and benchmarks for SIPs;
HyperOne to deploy fibre backbone with interconnection points to submarine cables;
Energy supplier AGL launches as an MVNO over the Optus network;
amaysim acquires OVO Mobile, sells mobile business to Optus Mobile for $250 million;
DITRDC awards funding under the government’s Alternative Voice Services Trials Program;
ACMA concludes auction of 26GHz spectrum for 5G;
99% of premises can access fixed broadband with minimum speeds of 25Mb/s;
Oman Australia Cable on target for completion at end-2021;
Orange Business Services announces partnership with nbn;
Telstra proposing major restructuring to create three separate legal entities;
Uniti Group acquires Telstra’s Velocity fibre network assets in Sydney and Brisbane for $140 million;
Tasmania completes carrier-grade LoRaWAN network for IoT applications;
Report update includes operator data to Q4 2020, assessment of the global impact of Covid-19 on the telecoms sector, recent market developments.
companies mentioned in this report: 42-24, AARNET, Aldi Mobile, Alcatel Submarine Networks, Altice Portugal, amaysim, Amazon, Apple, AT&T, Austar, Australian Competition & Consumer Commission (ACCC), Australian Communications and Media Authority (ACMA), Aware Super, Basslink Telecoms, Bechtel, Boost Mobile, BTB Australia, Bureau of Communications, Arts and Regional Research (BCARR), Disney, EnergyAustralia, Ericsson, Facebook, FetchTV, Fibercorp, Foxtel, Google, H2 Cable, Hawaiki Submarine Cable LP, Hayu, Huawei, Hulu, iiNet, Indosat Ooredoo, Inmarsat, Kogan, KPN, LBNCo, Lebara Mobile, Linfox, LoRa Alliance, M2, Macquarie Infrastructure and Real Assets (MIRA), Macquarie Telecom. Microsoft, MTData, Myriota, nbn (NBN Co), Netflix, New Skies Satellite, NICTA, NNNCo, Nokia, NSW Road and Management Services, NTT, O3b, Omantel, OneWeb, OPENetworks, OptiComm, OPT-NC, Optus, Orange Business Services, Ovo Mobile, PCCW, Pivit, Primus, RedTrain, Samsung, Securatrak, SES, Sigfox, SingTel, Softbank Corp, Software AG, SpaceX, Spark New Zealand, Stan, SUB.CO, Superloop, Sydney Water, TasNetworks, Telkom South Africa, Telstra, Thinxtra, TPG Telecom, TransACT, Uniti Group, Unwired, VHA, Viasat, Virgin Mobile, Visionstream, Vividwireless, Vocus, Vodafone, Vodafone Hutchison Australia. Read the full report: https://www.budde.com.au/Research/Australia-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses/?utm_source=GNW
Nicolas Bombourg: [email protected]
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