DUBLIN, December 24, 2021 / PRNewswire / – The report “Australia Telecoms Industry Report – 2021-2026” has been added to ResearchAndMarkets.com offer.
Australia has one of the most competitive and mature telecommunications markets in the world. Forecasts suggest that mobile subscriptions will continue to grow over the 2021-26 period, while fixed broadband subscribers are also expected to grow at a slightly lower average rate over the same period. The ratio of telecommunications sector revenues to GDP is declining from a high in 2000 to an all-time low in 2020.
The author predicts that the overall telecommunications market is expected to decline through 2021, as payments from NBN subscribers to Telstra will gradually decline as all of Telstra’s copper and HFC services are migrated to the NBN and market growth resumes. from 2022.
Telstra’s share of the telecom revenue pie has shrunk over the past 5 years and its EBITDA share shrinks even faster as Telstra’s dominance in the fixed line market is challenged by the migration to the NBN.
Telecom operators’ capital expenditure (Capex) emerges from an all-time high between 2017 and 2018 due to NBN’s investments in the upgrade australia fixed broadband infrastructure. The author expects Capex investments to remain strong to accommodate growth in data usage, expanding mobile coverage and capacity improvements. NBN expects increased capital spending from 2021 to take 75% of its fixed line footprint to speeds of 100 Mbps and above, but rules out a clear plan for a network upgrade to gigabit speeds to full fiber. Instead, NBN will need to continually invest in HFC and fixed wireless to increase capacity and accommodate more customers and higher data usage.
Mobile subscribers and income
The mobile subscriber market grew between 2014 and mid-2020, with Telstra and Optus increasing their postpaid subscriber base and Telstra also significantly increasing its MVNO and IoT subscribers during the same 2014-2020 period. The publisher estimates that the number of Australian mobile subscribers will increase due to population growth and the adoption of Internet of Things subscribers.
Mobile network operators are facing competitive pressure as the market moves towards unlimited voice, text and data allocation as the only differentiator of the offering. Operators are also bundling mobile plans with content offerings such as sports, music, and video streaming.
Australia is now in the unfortunate position of being the only country in the developed world with higher average mobile speed than fixed broadband according to Ookla speed tests.
The author expects 5G subscribers to represent 80% of all mobile subscribers by 2026.
Broadband subscribers and the NBN
The publisher estimates that the growth of broadband subscribers will be supported by the growth of households and a reduction in the number of previously underserved premises that cannot connect, now served by the Internet but now served by the NBN.
The NBN project remains a politically controversial issue for the country. The NBN has failed to remedy a flawed pricing structure, including contentious user fees, resulting in high prices and is a widespread failure to provide affordable gigabit speed compared to countries such as New Zealand Where Singapore which launched national broadband plans around the same time. For the third year in a row, NBN also moved its forecast positive cash position to 2023 after increasing its capital expenditure forecast.
By 2023, forecasts suggest that most subscribers have migrated to NBN broadband services with some remaining ADSL services in fixed wireless and satellite services and a number of fiber premises provided by entirely new operators. and complementary operators providing wholesale services under the same conditions as NBN. Opticomm, Uniti, Telstra with its former Fiber Velocity and TPG domains share the non-NBN market.
NBN Corporate Products
NBN’s corporate product deployment strategy is the subject of much debate in the industry. On the one hand, NBN has embarked on a strategy targeting high ARPU enterprise customers while industry supports NBN’s effort to overload existing fiber infrastructure – in some cases joining 6 others. fiber providers competing to offer services in the same building Melbourne CBD – not in its remit and capital investment should be directed towards upgrading underserved areas or residential services in FTTN areas or HFCs with mediocre speeds.
On the other hand, NBN product service also opens up new opportunities in areas where enterprise fiber services were not present before the investment in NBN. This, in turn, creates opportunities for small specialist ISPs to expand their footprint and offerings and to address the small and medium business market segment which is largely overlooked by large operators such as Telstra, Optus, TPG and Vocus.
Themes – 5G / Open-RAN / 6G / M & A
The arrival of 4G has moved the internet from our desktops to our palms and pockets, 5G could transform the network from something we carry to something that takes us either virtually (augmented reality or virtual reality) or into reality (autonomous vehicles), 5G results and benefits beyond rapid connectivity remain largely unknown in terms of business models, required investments and timing.
With 5G, a reality now in Australia, telecoms operators can now arbitrate NBN speeds in areas where the copper lines are very long or in poor health and thus offer a faster service on 5G than NBN at an equivalent price for certain market segments and certain zones geographic.
This report shows moderate growth due to pressure from ARPU compounded by pressure on margins in the fixed broadband market pushing telecom operators to seek outside opportunities to increase their scale. The author expects a new wave of consolidation in Australia, similar to the period 2010-2015, the post-NBN deployment as the margins tighten further.
Smaller NBN resellers will find it difficult to compete and sell to the larger operators. Some market players outside of the telecommunications market are looking to expand by exploring ways to broaden the range of their product and service offerings. The report gives examples of newcomers diversifying into reselling broadband access services as part of a strategy to reduce churn and increase consumer wallet share.
Investment funds attribute high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centers, submarine cables and fiber infrastructure. This report presents some real market examples of how investors view and value these investments with real industry examples and EV / EBITDA benchmarks and benchmarks.
This report provides revenue analysis and market forecast as well as statistics of Australia telecommunications industry including market size, 5 year forecast, market insight, major telecom trends, 5G, digital infrastructure and also features the following:
- Global telecommunications market by major operators
- Profile of telecommunications operators, revenues and EBITDA mix
- Overview and Forecast of Mobile Subscriber Market and Revenue
- Spectrum Fund
- Overview of the IoT market
- Overview and Forecast of Broadband Subscriber Market and Revenue
- Digital infrastructure (fiber, telecommunications towers, data centers, submarine cables)
- Telecommunication tower market analysis and forecast
- Themes / Opportunities related to 5G, M&A and e-Commerce
- Database of telecommunications mergers and acquisitions transactions
- Australian broadband
- Uniti Group
For more information on this report, visit https://www.researchandmarkets.com/r/1oyu4m
Research and markets
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SOURCE Research and Markets