Market Research Logo

Australia - Telco Company Profiles - 2nd Tier

Australia - Telco Company Profiles - 2nd Tier

Vocus and TPG continue to challenge Telstra and Optus

TPG Telecom Limited acquired local ISP iiNet. TPG is now Australias second-biggest provider of fixed-line broadband in Australia with over 1.7 million customers. Services including voice, internet and data solutions are provided to a customer base ranging from the consumer market through to small and medium enterprises, corporate and government sectors. The company also owns a cloud-hosting company and the PIPE network infrastructure that includes the third largest domestic dark-fibre operation and the submarine cable network to Guam, Asia and the United States.

The company is delivering an extensive Fibre-to-the-Basement (FttB) service to apartment buildings in capital cities, offering broadband at 100Mb/s at a price which undercuts existing offers from rival ISPs. TPG has also secured spectrum in the 2.5GHz band to bolster its wireless broadband capabilities, and has committed to investing in additional capacity on the subsea cable linking to New Zealand and the US West Coast.

The company has the largest data network and voice network after Telstra, the largest fully converged voice, video and data IP-based access network in regional Australia, and the largest voice-enabled IP network. TPG created a new retail arm to sell its wholesale fibre-to-the-basement product to residential customers.

In 2017 TPG made a bold move to become the fourth mobile operator in Australia. Initial sites are targeted for mid 2018.

Vocus is an Australian based telecommunications provider with offices in Australia and New Zealand. Its services include co-location, internet, voice, fibre and ethernet services. Vocus merged with M2 Communications and acquired Amcom. Vocus also acquired Nextgen Networks and its 17,000km fibre network linking major cities and regional centres.

The Vocus / Merger with M2 creates Australias fourth-largest telecommunications company and the third-largest in New Zealand. Vocus’ acquisition of Nextgen Networks will seriously lift its position as an infrastructure based telco. The acquisition is the next and perhaps final part of the company’s strategic plan that has also seen his firm expand geographically with the previous acquisition of Amcom and FX Networks, and diversify into the consumer space via its merger with M2.

While the TPG/iiNet merger brought two similar companies together, and as such potentially reduced the number of players in the market, the Vocus/M2 combination brings two different companies together – one operating in the business market and one operating in the retail market. This will allow the companies to share resources and attract better deals from the various ICT (wholesale) providers they do business with.

Macquarie Telecom is an integrated telco providing a full range of hosting, data, voice and mobile services to the business and government market. It also offers a range of cloud services including security, storage, backup-as-a-service and virtual hosting / data centre services.

Foxtel is the largest subscription television provider in Australia. Foxtel will continue to see declining ARPU as the proportion of its pay TV customers decline due to the migration to other Subscription Video On Demand (SVOD) providers which have much lower ARPU.

Foxtel has also moved into the SVOD arena in an effort to increase subscriber availability options. Although there has been steady growth in subscription TV services, in coming years customer viewing on the platform will have been greatly changed following the launch of services by OTT providers such as Stan and Netflix as well as SVOD options being marketed by FTA broadcasters.

The launch of a bundled service of broadband, telephony and STV via the NBN presents a major shift in the services that the company can provide for the consumer market. BuddeComm sees this as an important catch-up move to compete with the other ISPs that also provide bundled services.

Key developments:

TPG is delivering an extensive FttB service to apartment buildings in capital cities.
In 2017 TPG made a bold move to become the fourth mobile operator in Australia.
During 2017 Vocus has been struggling despite strong growth over the past few years.
Foxtel has moved into the SVOD arena in an effort to increase subscriber availability options.

Key companies mentioned in this report:

TPG Telecom, iiNet, AAPT, B Digital, Pipe Networks, Soul, Comindico, FOXTEL, AUSTAR, Optus, News Corporation, Telstra, Macquarie Corporate Telecommunications, Macquarie Telecom, Vodafone


  • EXECUTIVE SUMMARY
  • MARKET ANALYSIS
    • REVENUES STATISTICS AND MARKET FORECAST 2ND TIER TELCOS
      • Table Second-tier telcos - total revenue and annual change - 2010 - 2019
      • Table Second-tier telcos - revenue ($million) by major provider - 2014 - 2017
      • Table Second-tier telcos - Revenue and Market Share by major provider - 2017
      • Table Historic - Second-tier telcos - revenue by provider - 2010 - 2014
      • Table Historic - Second-tier telcos - revenue by major provider - annual change - 2010 - 2014
      • Table Historic - Second-tier telcos - revenue by major provider - relative market shares - 2010 – 2014
      • Table Historic - Second-tier telcos - revenue by provider (historic) - 2004 - 2007
      • Table Historic - Second-tier telcos - revenue by major provider - relative market shares - 2004 – 2007
  • FOXTEL
    • COMPANY OVERVIEW
      • Table FOXTEL at a glance
    • COMPANY ANALYSIS
    • OPERATIONAL RESULTS
      • 2017
        • Table Total FOXTEL and wholesale subscribers - 2012 - 2017
        • Table Historic - FOXTEL and wholesale subscribers by annual change - 2012 - 2014
        • Table Historic - Subscriber annual churn rate - 2002 - 2014
      • 2002 - 2016
        • Table Historic - FOXTEL and wholesale subscribers - 2002 - 2011
        • Table Historic - FOXTEL and wholesale subscribers by annual change - 2003 - 2011
        • Table Historic - FOXTEL subscribers by type - 2008 - 2011
    • FINANCIAL RESULTS
      • FY 2016 - 2017
        • Table FOXTEL - Key Financial Indicators Revenue ($million) - 2015 - 2017
      • FY 2011 - 2015
        • Table Historic - FOXTEL - Key Financial Indicators - 2014 - 2015
        • Table Historic - FOXTEL - Revenue and Net Income - 2012 - 2015
        • Table Historic - FOXTEL - Revenue and Net Income (US$) - 2012 - 2015
        • Table FOXTEL monthly ARPU - 2003 - 2016
    • ACQUISITIONS, ALLIANCES AND SUBSIDIARY COMPANIES
      • Acquisition of AUSTAR
        • Table Historic - AUSTAR key operating and financial figures - 2009 - 2012
        • Table AUSTAR brief company history - 1994 - 2012
    • PRODUCTS AND SERVICES
      • Digital pay TV
      • NBN / Triple-play services
      • Satellite services
      • Foxtel Play and Foxtel Go
      • Foxtel Now
      • Historic - Presto
      • History of Video on demand
      • The iQ3 set-top box
      • Operating centres in Sydney and Melbourne
    • COMPANY HISTORY
  • MACQUARIE TELECOM
    • COMPANY OVERVIEW
      • Table Macquarie Telecom (Macquarie) at a glance
    • FINANCIAL RESULTS
      • Table Macquarie key financial indicators - 2008 - 2017
      • Table Macquarie revenue by division- revenue $ (million)- 2015 - 2017
      • Table Historic - Macquarie revenue by division - 2004 - 2015
      • Table Historic - Macquarie revenue by division - 2004 - 2014
      • Table Historic - Macquarie - annual change in revenue by division - 2005 - 2014
      • Table Historic - Macquarie - revenue contribution by division - 2004 - 2014
    • DATA NETWORK
      • Table Macquarie Telecom data network PoPs
      • Metro Access Network (MAN)
      • Mobile network
      • Partnership with Tata Communications
    • SERVICES
      • Hosting solutions
      • Telco
      • Data centres
      • Macquarie Telecom Enterprise Cloud
    • COMPANY HISTORY
  • TPG TELECOM LIMITED
    • COMPANY INFORMATION
      • Overview
        • Table TPG Telecom Limited (TPG) at a glance - including key results
      • Company structure
    • COMPANY ANALYSIS
      • TPG's Bold Move to Become Australia's Fourth Mobile Operator
      • TPG's star continues to rise
      • Competitive Analysis Profile
        • Table TPG - Competitive Analysis Profile
    • COMPANY ACQUISITIONS
      • Acquires AAPT
      • Acquisition of iiNet
    • COMPANY INVESTMENTS
      • Invests in Amcom
      • Invests in subsea cable
    • RECENT COMPANY DEVELOPMENTS
      • Spectrum for New National Mobile Network
      • TPG to Become the Fourth Mobile Operator in Singapore
      • Dark Fibre and MVNO Agreement with Vodafone Australia
      • Spectrum Acquisition
      • Nationwide fibre capability for medical imaging specialist
      • FTTB Services To Go Live
    • NETWORK
      • Overview
      • PIPE Networks
    • FINANCIAL RESULTS
      • Year ending July 2017
        • Table TPG Revenue, EBITDA and NPAT- 2001 - 2017
        • Table TPG - revenue ($ million) breakdown by division - 2009 - 2017
        • Table TPG - consumer segment revenue ($ million) - 2016 - 2017
        • Table TPG - corporate segment revenue ($ million) - 2016 - 2017
        • Table TPG - Broadband ARPU ($/month) - 2016 - 2017
        • Table iiNet - Broadband ARPU ($/month) - 2016 - 2017
      • Historic
        • Table TPG consumer - revenue breakdown by market segment (consumer) - 2010 - 2016
        • Table TPG - Revenue by Division - 2016
        • Table Historic - TPG - broadband ARPU - 2009 - 2016
    • OPERATIONAL STATISTICAL OVERVIEW
      • Current
        • Table TPG - Group Broadband Subscribers (thousands) by Division- 2014 - 2017
        • Table TPG - Consumer Broadband Subscribers (thousands) by Product - 2014 - 2017
        • Table iiNet - Broadband Subscribers (thousands) by Product - 2015 - 2017
        • Table TPG - Group Mobile Subscribers (thousands) by Division- 2014 - 2017
        • Table iiNet Fixed Voice - subscribers and ARPU - 2015 - 2017
      • Historic
        • Table Historic - TPG Group - Total Subscribers, Mobile Subscribers - Jan 2016
        • Table Historic - TPG (only) - broadband subscribers on/off-net and bundled - 2008 - 2016
        • Table Historic - TPG on-net versus Soul off-net home phone subscribers, annual change - 2009 – 2015
        • Table Historic - TPG versus Soul mobile subscribers - 2008 - 2015
    • PRODUCTS AND SERVICES
      • Residential services
      • Business and wholesale services
      • International connectivity
      • National infrastructure developments
    • COMPANY HISTORY
    • IINET
      • Table iiNet Limited (iiNet) at a glance
    • CHANGE OF OWNERSHIP
      • Financial results
        • Table iiNet total revenue - 2004 - 2016
        • Table iiNet - revenue breakdown by market segment - 2015 - 2016
        • Table iiNet key financial statistics - 2007 - 2016
        • Table iiNet ARPU by service - 2008 - 2014
      • Operating results
        • Table iiNet - Broadband Subscribers (thousands) by Product - 2015 - 2016
        • Table Historic - iiNet active subscribers - 1997 - 2004
        • Table Historic - iiNet active subscribers - 2005 - 2015
        • Table iiNet internet subscribers by type - 2007 - 2014
        • Table iiNet voice subscribers by type - 2007 - 2014
      • Network
        • Table iiNet DSLAM exchanges - 2009; 2011 - 2012
      • Acquisitions, alliances and subsidiary companies
        • Table iiNet's acquisitions - 2003 - 2014
        • Table TransACT Communications Pty Ltd (TransACT) at a glance - 2011
        • Table Network FttK coverage
        • Table Broadband ISPs over TransACT network
        • Table TransACT brief company history
        • Table Internode Pty Limited (Internode) at a glance - 2012
        • Table Internode ADSL2+ statistical overview - 2006 - 2012
        • Table Internode brief company history
      • Products and services
        • Table iiNet business revenue - 2009 - 2014
      • Company history
  • VOCUS
    • VOCUS
      • Overview
      • Company Strategy Update - late 2017
      • Company analysis - 2017
      • Financial Results
        • Table Vocus - key financial parameters - 2012- 2017
        • Table Vocus - Revenue Split by Division - 2016 - 2017
        • Table Vocus - Revenue Split by Product - 2016 - 2017
        • Table Vocus key financial parameters - 2016
      • Q1 FY 2018 - Operational Highlights:
      • Operations Results - FY2017
        • Table Vocus Australia - Consumer Broadband Subscribers - 2016 - 2017
      • Acquisitions / Mergers
      • Network
      • Recent Developments
      • Data Centres
      • Products and Services
    • M2 COMMUNICATIONS - HISTORIC OVERVIEW
      • Overview
        • Table M2 Telecommunications Group Limited (M2) at a glance
      • Financial results
        • Table M2 key financial parameters - 2015
        • Table M2 revenue makeup and annual change - 2004 - 2015
        • Table M2 key financial performance indicators - 2004 - 2015
      • Services
        • Table M2 voice services performance indicators - 2013 - 2015
        • Table M2 mobile services performance indicators - 2013 - 2014
        • Table M2 internet services performance indicators - 2013 - 2014
        • Table M2 energy services performance indicators - 2013 - 2014
        • Table M2 services and target market by brand
      • Products and services
      • Acquisitions
        • Table M2's acquisitions - 2005 - 2013
        • Table Primus Telecommunications Australia at a glance
        • Table Primus brief company history
    • NEXTGEN NETWORK - HISTORIC OVERVIEW
      • Company Overview
        • Table Historic Nextgen Networks Pty Limited (Nextgen Group Holdings) at a glance
      • NBN - Regional Backbone Blackspots Program (RBBP)
        • Table The Regional Backbone Blackspots Program - completed rollouts
      • Network
        • Table Nextgen network distances and construction dates
      • Products and services
      • Acquisitions and alliances
      • Company history
    • AMCOM - HISTORIC OVERVIEW
      • Company Overview
        • Table Amcom Telecommunications Limited (Amcom) at a glance - historical
      • Financial results - historical
        • Table Amcom - operating revenue - 2000 - 2014
        • Table Amcom - key financial indicators - 2010 - 2014
        • Table Amcom - EPS - 2010 - 2014
        • Table Amcom revenue by service division - 2004 - 2013
        • Table Amcom revenue by service division - 2012 - 2014
      • Network
      • Acquisitions, alliances and subsidiary companies
        • Table Amcom's acquisitions - 2001 - 2014
        • Table Subsidiary companies
      • Products and services
        • Table Amcom - overview of products and services by division
      • Company history

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report