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Australia - Telecoms Industry - Statistical Overviews

Australia - Telecoms Industry - Statistical Overviews

Wholesale access to the NBN promising benefits for Australia’s telcos

Despite pressures on pricing, revenue is expected to show continued growth for fiscal 2016. M&A activity during 2015 has seen telcos such as TPG begin to realise the benefits of scale, propelling them to the main stage in terms of broadband market share. Positive growth is also anticipated from wholesale access to the NBN, with broadband providers such as Optus planning to provide services to up to eight million premises, or double the company’s existing footprint.

Optus recovered from revenue the decline reported in FY2014 to record a 6.7% increase in FY2015. VHA, which has been dogged by steep revenue declines for a number of years on the back of customer disaffection with service offerings, reported a 2.9% increase in revenue for the first half of 2015, supported by a 2.1% increase in its retail and MVNO subscriber base. The operator’s investments are clearly beginning to deliver rewards, resulting in a change in customer sentiments as it addresses popular concerns over poor network quality and stability.

Dominance of the triopoly players undermined by consolidation among second-tiers

Telstra continues to dominate the overall Australian telecom market, holding about 62% market share by revenue. Yet the company’s share in some sectors, such as broadband, has been falling steadily. TPG has been propelled to the fore in the provision of broadband following its acquisition of iiNet in late 2015. Telstra advantage in being the first telco to deploy LTE has also diminished as Optus and Vodafone now nearly match population coverage. Operator fortunes are now less in attracting new customers as in retaining existing ones, which is being achieved by more generous data caps and the reliability of network infrastructure. Just as Optus and Vodafone have begun to emerge from several difficult financial quarters, second-tier players including Macquarie Telecom, M2 Telecom and TPG (having recently acquired iiNet) continue to report strong revenue growth.

NBN slowly developing structure

Australia’s broadband sector is migrating to a multi-technology NBN, though with a considerable emphasis on fibre access. This has left room for further growth in the DSL and cable sectors, both of which are benefiting from the deployment of new technologies. The DSL sector is showing resilience as operators make greater use of VDSL and extend trials of G.fast technology, which can deliver far greater data capacity on legacy copper infrastructure. Much of the HFC network operated by Telstra and Optus, which for long suffered from underinvestment, is now being incorporated within the NBN, and with commercial DOCSIS3.1 technology likely to be deployed in 2017 investment in cable is again underway.

Wholesale measures to deliver improved network access

The pace of the NBN roll out also quickened during the second half of 2015. Recent proposals for FttP, FttB and copper-based services to come under Superfast Broadband Access Service (SBAS) regulations should benefit customers in rural areas.

NBN incorporating new technologies

While the NBN is not proceeding with the best-in-service FttP architecture, instead having adopted a multi-technology mix incorporating copper plant, there are some promising developments being undertaken by NBN Co and Telstra. Alongside DOCSIS3.1 trials, G.fast is being trialled with a view to incorporating the technology within the mix. Trials in Melbourne have achieved data rates of up to 600Mb/s, though the short loops remain a challenge for wide deployments.

Spectrum review to benefit rural customers

To address the shortage of spectrum, the ACMA has reallocated available spectrum in several bands for LTE use. In June 2015 the government formally announced that spectrum in the 1725–1785MHz and 1820–1880MHz ranges in regional Australia would be reallocated through new licences. The auction for licences is aimed at improving LTE services in regional Australia.

Mobile broadband subscribers shifting to LTE and the future 5G

In Australia, the number of mobile subscribers reached about 31.4 million at the end of 2015, giving a penetration of around 133%. There were just over six million mobile broadband subscriptions in June 2015, representing about 20% of the total. About a quarter of mobile broadband subscribers are now on LTE networks, a proportion which will grow rapidly into 2016 and beyond. LTE remains a relatively nascent technology, with regular improvements entering the market aimed at optimising network capabilities. While much investment remains in LTE, there is also a surge in interest in 5G, designed less to manage traffic as to connect billions of devices. By 2017 Telstra plans to begin closing down its 2G infrastructure, which now accounts for only about 1% of total network traffic. By 2025 it is expected that Australian MNOs will begin the process of closing down 3G infrastructure as well, leaving investments concentrated on LTE and 5G.

Key developments:

iiNet deploys up to 30,000 Wi-Fi hotpots in capital cities;
Telstra launches Air Wi-Fi network;
Optus planning to re-enter the DSL market via the NBN;
Draft standards published related to vectored VDSL2 services on the NBN;
Report update includes telcos’ financial and operating updates to June 2015, recent data and surveys from ACMA and the ABS, recent market developments.

Companies mentioned in this report:

BigAir, vividwireless, Unwired, Optus, Telstra, NBN Co, VHA, TPG, Vodafone, Exetel, M2, Nextgen, iiNet, Macquarie Telecom, Pipe Networks, Amcom, Internode, My Net Fone.


  • EXECUTIVE SUMMARY
  • MARKET AND INDUSTRY STATISTICS
    • STATISTICAL OVERVIEW OF THE TELECOMS MARKET - BY PROVIDER
      • Total telecommunications services market
        • Table Historic - Total telecoms revenues by major providers - 2000 - 2004
        • Table Total telecoms revenues by smaller operators, and total - 2005 - 2015
        • Table Optus telecoms revenue - 2005 - 2016
        • Table Vodafone telecoms revenue - 2005 - 2015
      • Telstra
        • Table Telstra Group total revenue and annual change - 2000 - 2015
        • Table Telstra Group revenue by segment - 2009 - 2015
        • Table Telstra Group revenue (other segments) - 2009 - 2015
        • Table Telstra fixed-line revenue by service - 2009 - 2015
        • Table Telstra mobile revenue by service - 2009 - 2015
        • Table Telstra fixed data revenue - 2011 - 2015
        • Table Telstra IP and data access revenue by service - 2009 - 2015
        • Table Telstra offshore controlled entities revenue - 2009 - 2015
      • Optus
        • Table Optus overall operating revenue summary and annual change - 2000 - 2016
        • Table Optus key financial indicators - 2009 - 2016
        • Table Optus operating revenue by operating division (A$) - 2011 - 2016
        • Table Optus revenue by service (S$) - 2009 - 2016
        • Table Operational EBITDA by operating division - 2008 - 2016
        • Table Historic - Optus revenue by major and minor service category - 2011 - 2013
      • Vodafone Hutchison Australia
        • Table Vodafone Australia revenue - 2009 - 2015
        • Table HTA key metrics - financial overview - 2009 - 2015
        • Table Vodafone - subscribers by type - 2009 - 2015
      • Capital expenditure
        • Table Total capital expenditure by major network provider - 2009 - 2015
    • STATISTICAL OVERVIEW OF THE TELECOMS MARKET - BY SERVICE
      • 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 - 2015
        • Table Total telecoms market - annual retail growth by service - 2001 - 2015
        • Table historic - Total telecoms market - retail market share by service - 2000 - 2004
        • Table Total telecoms market - retail market share by service - 2005 - 2015
      • Wholesale market
        • 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
        • 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; 2000 – 2004
        • Table Annual change of mobile market revenue per major operator - 2005 - 2014
        • Table Proportion of mobile service revenue from voice and data - 2007 - 2014
        • Table Blended ARPU per month per major operator - 2000 - 2014
        • Table Blended ARPU per month per major operator - annual change - 2004 - 2014
      • Broadband market
        • Table Broadband revenues by major provider - 2009 - 2014
        • Table Annual change in broadband access revenues by major provider - 2010 - 2014
        • Table Market share of broadband access revenues by major provider - 2004 - 2014
    • 2ND TIER TELCOS - REVENUE STATISTICS
      • Service revenues and market shares
        • Table Second-tier telcos - revenue by provider - 2010 - 2014
        • Table Second-tier telcos - revenue by major provider - annual change - 2010 - 2014
        • Table Second-tier telcos - revenue by major provider - relative market shares - 2010 - 2014
        • Table Second-tier telcos - revenue by provider (historic) - 2004 - 2007
        • Table Second-tier telcos - revenue by major provider (historic) - relative market shares - 2004 – 2007
        • Table TPG - revenue breakdown by market segment (consumer) - 2010 - 2015
        • Table TPG - revenue breakdown by division - 2009 - 2015
        • Table M2 key financial parameters - 2015
        • Table Macquarie telecom key financial indicators - 2008 - 2015
        • Table Macquarie revenue by division - 2004 - 2015
  • TELECOMS SERVICES -WHOLESALE AND COMPETITIVE ACCESS
    • ANALYSIS OF THE WHOLESALE MARKET
    • WHOLESALE REFORMS
      • Introduction of regulatory instruments
      • Regulatory instruments - analysis
      • Final access determinations for fixed line telecommunications
      • Layer 2 bitstream on non-NBN Co networks
      • Difference between peering and interconnection
      • The thriving wholesale aggregation market
        • Table The wholesale market in Australia - key players - 2015
    • HOW WILL COMPETITION DEVELOP IN AN NBN ENVIRONMENT?
    • NBN RETAIL COMPETITION AT LOWER MARGINS
    • GOVERNMENT IS FORCING THE TELCO INDUSTRY TO FIGHT TELSTRA DOMINANCE
    • THE NBN (AFTER THE ELECTIONS) AND THE COMPETITION ISSUES
      • Forty years too late
      • Who is going to invest in competing fixed infrastructure?
      • So what are the competition models from those promoting it?
      • Competition policy should be focused on the services, not the infrastructure
    • REGIONAL TELECOMMUNICATIONS REVIEW REPORT - 2015
    • NATIONAL BROADBAND NETWORK - POLICIES AND REGULATIONS (SEE SEPARATE REPORT)
    • WHOLESALE PRODUCT OVERVIEW
      • NBN for business
      • 1Gbps wholesale service
      • The FttN service
    • THE NBN WHOLESALE AND POI DEBATE
      • Wholesale dominance
      • Backhaul competition
      • The business opportunities of the POIs
      • Connectivity Virtual Circuit (CVC)
      • NBN Co's multicast service
      • Access seekers gateways
      • The effect of streaming video on the NBN
    • NBN CO'S MULTICAST SERVICE
      • Overview of the service
      • Wholesale Pricing
      • iiNet
      • 4K TV
    • PRICING STRATEGIES
      • Wholesale Broadband Agreement
      • NBN Co special access undertaking (SAU)
      • Wholesale prices
        • Table NBN pricing schedule for access virtual circuits
        • Table NBN pricing schedule for PoI connections
    • KEY WHOLESALE SERVICES (COPPER BASED NETWORK)
      • Unconditioned Local Loop Services (ULLS)
      • Line sharing or spectrum sharing
      • Local Carriage Service (LCS)
      • Unbundled Bitstream (UBS)
      • UBS versus ULL
      • Naked DSL
    • NBN UTILITY MANAGEMENT SERVICE - THE RETAIL CLAUSE
    • DO WE NEED INFRASTRUCTURE-BASED COMPETITION?
  • NATIONAL BROADBAND NETWORK - STATISTICS AND SURVEYS
    • NBN COMPANY STATISTICAL DATA
      • NBN Co's corporate plan for FY2014-17
    • RESULTS 2015
      • NBN Results first quarter 2015
      • NBN Co results - December 2014
      • Progress towards the Multi-Technology Mix
    • NBN CO'S FULL YEAR 2014 FINANCIAL RESULTS
      • Introduction
      • Financial Results
        • Table Capital Expenditure - 2012 - 2014
        • Table NBN Co Revenue 2012 - 2014
        • Table NBN ARPU - 2013 - 2014
    • MARKET SURVEYS
      • Economic Benefit of the National Broadband Network
      • NBN support still strong
        • Table Support for NBN
      • Towards a Connected Australia - NBN Co Report 2015
      • Deloitte's Media Consumer Survey - 2014
      • Privatisation of NBN is not popular
      • FTTN modelling results
      • NBN speeds over 25Mb/s
      • Broadband benefits for households
        • Table Benefits of broadband for individual households - a national framework
        • Table Scenarios - summary of benefits in 2020
      • Support for fast broadband via an NBN
      • Customers prepared to pay for higher speeds
      • NBN key to the creation of 3 million jobs by 2030
    • THE DIGITAL ECONOMY - TRANS-SECTOR MARKET
      • Forecasts - 2015; 2020
    • BUSINESS MARKET SURVEY
      • NBN Business Readiness Survey
      • NBN impact on industry output by 2020
        • Table Impacts of the NBN on industry output at 2020 (% change)
      • Summary of survey findings
    • BUSINESS MODELS AND MERGERS AND ACQUISITIONS (M&A)
      • Fixed market scenarios
      • Mobile market scenarios
  • BROADBAND MARKET
    • THE DSL MARKET
      • Brief overview of the NBN
      • Regulatory environment - analysis
        • Table Wholesale DSL pricing, per month per user - 2013 - 2014
      • DSL infrastructure
        • Table DSL broadband subscribers -2008 - 2016
        • Table DSL subscribers and availability by state/territory - 2013
        • Table DSL premises affected by distance from exchange - 2013
        • Table Number of DSLAMs by major providers - 2009 - 2012; 2014
        • Table Total number of DSLAMs - 2006 - 2014
        • Table Number of ADSL and ADSL2+-enabled exchanges - 2013 - 2015
        • Table Fibre Access Broadband (FAB) exchanges - November 2015
        • Table Top Hat enabled exchanges - 2011 - 2013
      • Brief overview of broadband providers market
        • Table Broadband DSL retail subscribers by major provider - 2011 - 2014
        • Table Broadband DSL retail subscribers by major provider - 2011 - 2014
        • Table Total business and residential broadband subscribers - 2006 - 2015
        • Table Telstra broadband subscribers by sector - 2007 - 2015
    • THE HFC MARKET
      • Technology
      • NBN - HFC Program
        • Table HFC Roll out 2016-2018
        • Table Weighted average cost per HFC premise (rounded nearest $100)
      • Market statistics and estimates
        • Table HFC cable broadband subscribers - 2012 - 2015
        • Table Cable broadband subscribers by major operator and annual change - 2002 - 2015
        • Table Cable subscribers versus other broadband technologies - 2009 - 2015
      • Telstra
      • Optus
        • Table HFC network status
        • Table Optus financial data - 2011 - 2015
        • Table Optus financial data by sector - 2009 - 2015
        • Table Optus on-net broadband subscribers - 2009 - 2015
      • IiNet/TransACT
      • BES/e-wire
      • Austar United Communications (AUSTAR)
      • Industry analysis
    • BUSINESS MARKET
      • Market trends
        • Table Business, government and household dial-up subscribers - 2009 - 2015
        • Table Business, government and household broadband subscribers - 2009 - 2014
        • Table Business, government and household total internet subscribers - 2009 - 2014
        • Table Business uptake of broadband by access type - 2010 - 2014
      • Business market surveys
        • Table SME online trends - websites versus social media - 2010 - 2014
        • Table Historic - SME computer equipment ownership trends - 1999 - 2004
        • Table SME computer equipment ownership trends - 2005 - 2015
        • Table Computer hardware expenditure - SMEs and medium businesses - 2001 - 2014
        • Table Business trends in internet connections - 1998 - 2015
        • Table SMEs internet access methods, by technology - 2010 - 2015
        • Table SMEs internet access methods, by technology - 2010 - 2015
        • Table Top uses of the internet by SMEs - 2011 - 2015
        • Table Proportion of SMEs with social media presence - 2011 - 2015
        • Table Business focus on digital engagement - 2014 - 2016
        • Table Expectations of customer e-payments - 2011 - 2012; 2015-17
        • Table Priorities driving business investments - 2014
        • Table Areas of future business investments - 2014 - 2016
      • Business customer expenditure on telecoms
        • Table Estimated telco product mix of business customer spend - 2015
        • Table Revenue mix - total spend of telecoms - SME market - 2015
    • RESIDENTIAL MARKET
      • Statistical overview residential market - total telecoms
        • Table Revenue mix - total spend of telecoms - residential market - 2015 9e0
      • Internet household statistics
        • Table Historic - Total households versus internet enabled households - 1999 - 2004
        • Table Total households versus internet enabled households - 2005 - 2015
        • Table Broadband component of internet enabled households - 2005 - 2016
        • Table Proportion of internet households with children - 2005 - 2009; 2010 - 2013
        • Table Internet access households with children - 2005 - 2009; 2010 - 2013
      • Trends in the residential market
        • Table Fixed-line broadband data usage by users - 2008 - 2015
        • Table Household/individual broadband connections - 2012 - 2014
        • Table Historic - Dial-up and broadband internet subscribers - 2003 - 2004
        • Table Dial-up and broadband internet subscribers - 2005 - 2015
      • Household use of technology
        • Table Computerisation in the home - 2012 - 2015
        • Table Technology use in the home - 2012 - 2015
        • Table Proportion of the population using social networking sites - 2011 - 2016
      • Other residential market surveys
        • Table Top 5 online applications - 2013 - 2015
        • Table Use of internet applications - 2010 - 2015
        • Table New complaints to the TIO per 10,000 services in operation - 2013 - 2015
        • Table Total new complaints to the TIO - 2006 - 2015
        • Table Number of investigations by the TIO, by levels - 2009 - 2015
  • MOBILE COMMUNICATIONS MARKET
    • REVENUE OVERVIEW
      • Statistical sources
      • Total mobile services revenue and forecasts
        • Table Historic - Total mobile services market revenue and annual change - 1993 - 2004
        • Table Total mobile services market revenue and annual change - 2005 - 2015
      • Operator revenue statistics overview
        • Table Telstra mobile services revenue - 2009 - 2015
        • Table Vodafone Australia revenue - 2009 - 2015
        • Table Optus key financial indicators - 2009 - 2016
        • Table Optus mobile revenue - 2013 - 2016
        • Table Historic - Mobile market revenue per major operator - 1993 - 2004
        • Table Historic - Annual change of mobile market revenue per major operator - 1994; 1997; 2000 – 2004
        • Table Annual change of mobile market revenue per major operator - 2005 - 2015
        • Table Mobile market share in revenue per major operator - 2000 - 2015
        • Table Estimated mobile service revenue by service, proportion of total - 2007 - 2015
        • Table Telstra mobile and broadband revenue - 2009 - 2015
      • Average revenue per user (ARPU)
        • Table Blended monthly ARPU by MNO - 2000 - 2015
        • Table Annual change in blended monthly ARPU by MNO - 2004 - 2015
        • Table Telstra postpaid ARPU per month - 2004 - 2015
        • Table Optus postpaid ARPU per month - 2004 - 2016
    • SUBSCRIBER STATISTICS
      • Statistical sources
      • Mobile subscriber statistics
        • Table Mobile market subscribers, penetration rate and annual change - 2000 - 2016
        • Table Historic - Mobile subscribers by carrier - 1993; 1997; 2000 - 2004
        • Table Vodafone - subscribers by type - 2009 - 2015
        • Table Telstra mobile subscribers - 2008 - 2015
        • Table Optus mobile subscribers - 2008 - 2015
        • Table Historic - Annual change of mobile subscribers by carrier - 1995; 1997; 2000 - 2004
        • Table Annual change of mobile subscribers by carrier - 2005 - 2015
        • Table Historic - Mobile subscriber market share by carrier - 1993; 1997; 2000 - 2004
        • Table Mobile subscriber market share by carrier - 2010 - 2015
        • Table Historic - 3G mobile subscribers by carrier - 2003 - 2011
        • Table Historic - Annual change of 3G mobile subscribers by carrier - 2007 - 2011
        • Table Proportion of 3G mobile subscribers versus total subscribers by carrier - 2006 - 2015
        • Table Historic - 2G mobile subscribers by carrier - 2006 - 2011
        • Table Historic - Annual change of 2G mobile subscribers by carrier - 2006 - 2011
        • Table Average LTE speed by MNO - 2012 - 2015
        • Table Share of postpaid subscribers by operators - 2014 - 2015
        • Table Share of prepaid subscribers by operators - 2014 - 2015
        • Table Vodafone - prepaid and contract subscribers - 2009 - 2015
        • Table Optus mobile pre/postpaid customers - 2008 - 2015
        • Table Telstra mobile subscribers - 2009 - 2015
        • Table Telstra wholesale subscribers - 2009 - 2015
    • MOBILE BROADBAND MARKET
      • Market overview and analysis
      • Mobile broadband market statistics
        • Table Wireless broadband subscribers by access type - 2009 - 2015
        • Table Mobile broadband subscribers by mobile network operator - 2007 - 2015
        • Table Telstra mobile broadband subscribers - 2007 - 2015
        • Table Estimated mobile broadband data downloaded in Petabytes - 2007 - 2015
        • Table Estimated mobile broadband revenues and annual change - 2007 - 2015
        • Table Mobile broadband monthly ARPU - 2007 - 2015
        • Table Fixed wireless broadband subscribers - 2010 - 2015

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