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Australia - Telco Company Profiles - 2nd Tier


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Australia - Telco Company Profiles - 2nd Tier

Rapid consolidation in the 2nd tier market

The 2nd tier market

Developments in this market have been dominated by industry consolidation, a process that is set to continue over coming years. Moving towards a structurally separated regulatory environment with a NBN at the horizon, size really does matter.

The other important development has been Telstra’s aggressive activities to increase its market share, particularly in the mobile and broadband sectors. This has been detrimental to a number of 2nd tier players, as has been reflected in their declining revenue in 2013. Nevertheless, there was an overall recovery in total revenue among these players in 2013, reflecting the benefits of scale brought about by market consolidation. Overal revenue for these operators, of about $3.9 billion, still accounts for less than 10% of the total telecoms market in Australia.

The NBN, and in particular the structural separation between infrastructure and services, is going to change the telecoms industry beyond recognition. Gone will be the days of regulatory gaming. A completely new industry structure will require collaboration and cooperation, rather than the destructive adversarial environment of the past.

However, before that open market is established, Telstra will still dominate the current market structure, and with its NBN bounty has deep pockets to invest in new opportunities. Another question is whether the design of the NBN will lead to true wholesale competition; or will it restrict this to a handful of players who can afford to build their presence in the 121 points of interconnect? This could well prove to be a critical strategic mistake.

The ACCC who approved this has already indicated that this will be one of the main areas it will be monitoring. The unique construction that offers backhaul competition could indeed be the facilitator in obtaining the competitive outcome needed to ensure that a dynamic system is developed which will lead to innovation.

Industry collaboration will also be needed to limit the necessity for more regulation. In a dynamic environment time is money and there is no longer room for year-long regulatory processes. Trust needs to be built up to facilitate much speedier dispute resolution, preferably preventing these disputes from arising in the first place. Some early indications are that NBN Co is willing to sit down and make changes where it makes sense to create a better wholesale and retail environment for all involved.

Data in this report is the latest available at the time of preparation and may not be for the current year


  • EXECUTIVE SUMMARY
  • TELECOMS MARKET REVENUE OVERVIEW
    • TOTAL TELCO MARKET BY MAJOR SERVICE
      • Table Historic - Total telecoms market - retail revenue by service - 2001 - 2004
      • Table Total telecoms market - retail revenue by service - 2005 - 2014
      • Table Total telecoms market - annual retail growth by service - 2001 - 2014
      • Table historic - Total telecoms market - retail market share by service - 2000 - 2004
      • Table Total telecoms market - retail market share by service - 2005 - 2014
    • WHOLESALE MARKET
      • The market into 2014
      • Wholesale revenue
        • Table Historic - Wholesale market revenues by major supplier - 2000 - 2004
        • Table Wholesale market revenues by major supplier - 2005 - 2014
        • Table Wholesale market shares - by major supplier - 2000 - 2014
        • Table Historic - Annual change in wholesale market revenues by major supplier - 2000 - 2004
        • Table Annual change in wholesale market revenues by major supplier - 2005 - 2014
    • MOBILE MARKET
      • Market overview and analysis
        • Table Historic - Total mobile services market revenue and annual change - 2000 - 2004
        • Table Total mobile services market revenue and annual change - 2005 - 2014
        • Table Historic - Mobile market revenue per major operator - 1993 - 2004
        • Table Mobile market revenue per major operator - 2005 - 2014
        • Table Historic - Annual change of mobile market revenue per major operator - 1994; 1997;
        • Table Annual change of mobile market revenue per major operator - 2005 - 2014
      • Revenue by service
        • Table Proportion of mobile service revenue from voice and data - 2007 - 2014
      • Average revenue per user (ARPU)
        • Table Blended ARPU per month per major operator - 2000 - 2014
        • Table Blended ARPU per month per major operator - annual change - 2004 - 2014
    • BROADBAND MARKET
      • Internet access revenues
        • Table Broadband revenues by major provider - 2005 - 2013
        • Table Annual change in broadband access revenues by major provider - 2006 - 2013
        • Table Market share of internet access revenues (broadband and dial-up) by major provider- 2004 – 2014
  • NATIONAL BROADBAND NETWORK
    • WHOLESALE AND COMPETITION
      • The NBN (after the elections) and the competition issues
      • National Broadband Network - Policies and Regulations
      • Wholesale Product Overview
      • The NBN wholesale and PoI debate
      • NBN Co's multicast service
      • Pricing Strategies
        • Table NBN pricing schedule for access virtual circuits
        • Table NBN pricing schedule for PoI connections
      • NBN Utility Management service - The Retail Clause
      • Do we need infrastructure-based competition?
  • AMCOM TELECOMMUNICATIONS LIMITED
    • COMPANY INFORMATION
      • Overview
        • Table Amcom Telecommunications Limited (Amcom) at a glance
    • COMPANY ANALYSIS
      • Well defined strategies
      • Independence from others
      • National broadband network (NBN)
    • FINANCIAL RESULTS
      • Year 2013
      • Year 2012
      • Year 2011
      • Financial statistics
        • Table Amcom - operating revenue - 2000 - 2013
        • Table Amcom - key financial indicators - 2010 - 2013
        • Table Amcom - EPS - 2010 - 2013
        • Table Amcom revenue by service division - 2004 - 2012
    • PRODUCTS AND SERVICES
      • Divisional overview
      • Amnet
      • Data Networks
    • NETWORK
      • Fibre network overview
      • SABRENet and maintenance agreement
    • ACQUISITIONS, ALLIANCES AND SUBSIDIARY COMPANIES
      • Acquisition overview
        • Table Amcom's acquisitions - 2001 - 2013
      • Amcom acquires IP Systems (IPS)
      • Amcom acquires L7 IT group
      • Partnership with BlueFire cloud services
      • Subsidiary companies
        • Table Subsidiary companies
    • COMPANY HISTORY
      • Brief timeline - 1988 - 2013
  • IINET
    • COMPANY INFORMATION
      • Overview
        • Table iiNet Limited (iiNet) at a glance
      • Current issues
    • FINANCIAL RESULTS
      • Year 2013
      • Year 2012
        • Table iiNet total revenue - 2004 - 2013
        • Table iiNet key financial statistics - 2007 - 2013
        • Table iiNet ARPU by service - 2008 - 2013
      • Year 2011
        • Table iiNet total revenue (historic) - 1997 - 2003
    • OPERATING RESULTS
      • Subscriber statistics
        • Table Historic - iiNet active subscribers - 1997 - 2004
        • Table iiNet active subscribers - 2005 - 2013
        • Table iiNet internet subscribers by type - 2007 - 2013
        • Table iiNet voice subscribers by type - 2007 - 2013
    • COMPANY ANALYSIS
    • NETWORK
      • Overview
      • DSLAM rollout
        • Table iiNet DSLAM exchanges - 2009; 2011 - 2012
      • Dark fibre
      • Fibre-to-the-Home (FttP)
      • iiNet's plans for undersea network expansion taking shape
    • ACQUISITIONS, ALLIANCES AND SUBSIDIARY COMPANIES
      • Acquisition overview
        • Table iiNet's acquisitions - 2003 - 2013
      • Partnership with Polycom
      • Acquisition of ISP Westnet
      • Alliance with FOX Sports
      • Alliance with Hypernia
      • Alliance with Hybrid Television Services
      • Alliance with Hutchison
      • Amcom and PowerTel acquire stake in iiNet
      • Partnership with FetchTV
      • Acquisition of AAPT Consumer Division
      • Acquisition of Supernerd
      • Acquisition of TransACT
        • Table TransACT Communications Pty Ltd (TransACT) at a glance – 2011
        • Table TransACT brief company history
      • Acquisition of Internode
        • Table Internode Pty Limited (Internode) at a glance – 2012
        • Table Internode ADSL2+ statistical overview - 2006 - 2012
        • Table Internode brief company history
      • Acquisition of Adam Internet
    • PRODUCTS AND SERVICES
      • Home and SOHO
      • Business
        • Table iiNet business revenue - 2009 - 2012
      • Reselling agreements
    • COMPANY HISTORY
      • Brief timeline - 1993 - 2013
  • MACQUARIE TELECOM
    • COMPANY INFORMATION
      • Overview
        • Table Macquarie Telecom (Macquarie) at a glance
    • FINANCIAL RESULTS
      • FY 2013
      • FY 2012
      • FY 2011
      • Operating revenues and statistical overview
        • Table Macquarie key financial indicators - 2008 - 2013
        • Table Macquarie EPS results - 2008 - 2013
        • Table Macquarie - annual revenue by division - 2004 - 2013
        • Table Macquarie - annual change in revenue by division - 2005 - 2013
        • Table Macquarie - revenue contribution by division - 2004 - 2013
    • COMPANY ANALYSIS
      • Leader in managed business services
      • National Broadband Network (NBN)
    • DATA NETWORK
      • Metro Access Network (MAN)
      • Mobile network
    • SERVICES
      • Hosting solutions
      • Telco
      • Management tools
      • Data centres
      • Macquarie Telecom Enterprise Cloud
    • COMPANY HISTORY
      • Brief timeline - 1992 - 2013
  • M2 TELECOMMUNICATIONS
    • COMPANY INFORMATION
      • Overview
        • Table M2 Telecommunications Group Limited (M2) at a glance – 2013
    • COMPANY ANALYSIS
      • Growing the company
      • Arriving in the top ten
    • FINANCIAL RESULTS
      • Year 2013
        • Table M2 key financial parameters - 2012 - 2013
      • Year 2012
      • Year 2011
      • Financial statistics overview
        • Table M2 revenue makeup and annual change - 2004 - 2013
        • Table M2 key financial parameters - 2010 - 2012
        • Table M2 key financial performance indicators - 2004 - 2013
    • SERVICES
      • Fixed-line voice
      • Mobile
      • Internet
      • Brands
        • Table M2 services and target market by brand – 2013
    • PRODUCTS AND SERVICES
      • Overview
      • M2 Telecom (retail)
      • M2 Wholesale
    • ACQUISITIONS, ALLIANCES AND SUBSIDIARY COMPANIES
      • Acquisition overview
        • Table M2's acquisitions - 2005 - 2013
      • Acquisition Dodo - 2013
      • Acquisition Eftel - 2013
      • Acquisition Primus Telecommunications - 2012
        • Table Primus Telecommunications Australia at a glance – 2011
        • Table Primus brief company history
      • Acquisition Time Group - 2012
      • Acquisition of Flextalk - 2012
      • Acquisition of AUSTAR Mobile - 2011
      • Acquisition of Clear Telecoms (M2 Clear) - 2011
      • Acquisition of Bell Networks - 2010
      • Acquisition of Clever Communications - 2010
      • Acquisition of People telecom - 2009
      • Acquisition of Commander assets - 2009
      • Acquisition of Unitel Australia - 2008
      • Acquisition of Orion Telecom - 2007
      • Acquisition of Tenex Communications - 2007
      • Acquisition of Wholesale Communications - 2007
    • COMPANY HISTORY
      • Brief timeline - 1999 - 2013
  • FOXTEL
    • COMPANY INFORMATION
      • Overview
    • OPERATIONAL RESULTS
      • 2013
      • 2012
      • 2011
      • Subscriber statistics
        • Table Total FOXTEL and wholesale subscribers - 2012 - 2014
        • Table FOXTEL and wholesale subscribers by annual change - 2012 - 2014
        • Table FOXTEL Subscriber annual churn rate - 2012 - 2014
      • Historic subscriber statistics
        • Table Historic - FOXTEL and wholesale subscribers - 2002 - 2011
        • Table Historic - FOXTEL and wholesale subscribers by annual change - 2003 - 2011
        • Table Historic - FOXTEL subscriber annual churn rate - 2002 - 2011
        • Table Historic - FOXTEL subscribers by type - 2008 - 2011
        • Table Historic - FOXTEL subscribers by type - 2012
    • FINANCIAL RESULTS
      • FY 2013
        • Table FOXTEL key financial performance snapshot - H1 2012 - H1 2013
      • FY 2012
      • Y 2011
      • Statistical financial overview
        • Table FOXTEL key financial performance indicators snapshot - 2012 - 2013
      • Historical statistical financial overview
        • Table Historical - FOXTEL key financial performance indicators - 2008 - 2012
        • Table Historical - FOXTEL yearly and monthly ARPU - 2003 - 2012
    • ACQUISITIONS, ALLIANCES AND SUBSIDIARY COMPANIES
      • Acquisition of AUSTAR
        • Table AUSTAR key operating and financial figures - 2009 - 2012
        • Table AUSTAR brief company history - 1994 – 2012
      • Acquisition of Premium Movie Partnership (Showtime)
    • PRODUCTS AND SERVICES
      • Digital pay TV
      • Apps availability and the move to IPTV
        • Table FOXTEL on-demand pricing - 2011 - 2013
      • FOXTEL further expanding IPTV availability
      • Optus resells 1Q HD
      • Triple-play services
      • Satellite services
      • Operating centres in Sydney and Melbourne
    • COMPANY HISTORY
      • Brief timeline - 1994 - 2013
  • NEXTGEN NETWORKS PTY LIMITED
    • COMPANY INFORMATION
      • Overview
        • Table Nextgen Networks Pty Limited (Nextgen Group Holdings) at a glance – 2013
      • Background information on company ownership
      • Recent developments
    • NBN - REGIONAL BACKBONE BLACKSPOTS PROGRAM (RBBP)
      • Background information
        • Table The Regional Backbone Blackspots Program - completed rollout figures – 2011
    • NETWORK
      • Overview
        • Table Nextgen network distances and construction dates
    • PRODUCTS AND SERVICES
      • Introduction
      • High-speed internet
      • Transmission
      • Data centres
      • Customised data solutions
    • ACQUISITIONS AND ALLIANCES
      • Nextgen acquires Silk telecom (Silk)
    • COMPANY HISTORY
      • Brief timeline - 2000 - 2013
  • TPG TELECOM
    • COMPANY INFORMATION
      • Overview
        • Table TPG Telecom Limited (TPG) at a glance - including key results
    • COMPANY ANALYSIS
    • LATEST DEVELOPMENTS
      • TPG offers low cost mobile broadband
      • TPG moves with TrustedCloud
      • Acquires AAPT
      • Secures mobile spectrum
      • Invests in subsea cable
    • COMPANY DIVISIONAL OVERVIEW
      • Company structure
    • NETWORK
      • Overview
      • PIPE Networks
    • FINANCIAL RESULTS
      • Year ending July 2013
      • Year ending July 2012
      • Year ending July 2011
      • Financial statistical overview
        • Table TPG revenue and annual change - 2001 - 2013
        • Table TPG - key financial indicators - 2007 - 2013
        • Table TPG - opex versus capex - 2007 - 2013
        • Table TPG - revenue breakdown by market segment - 2010 - 2013
        • Table TPG - revenue breakdown by division - 2009 - 2013
        • Table TPG - broadband ARPU - 2009 - 2013
      • Operational statistical overview
        • Table TPG - broadband subscribers on/off-net and bundled - 2008 - 2013
        • Table Historic - TPG on-net versus Soul off-net home phone subscribers & annual change - 2009 – 2012
        • Table Historic - TPG versus Soul mobile subscribers and annual change - 2008 - 2012
    • PRODUCTS AND SERVICES
      • Residential services
      • Business and wholesale services
    • COMPANY HISTORY
      • Brief timeline - 1999 - 2013

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