Mobile Telecommunications Carriers in Australia Industry Market Research Report Now Updated by IBISWorld

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Mobile phones have become the principal means of telephone communications and a life necessity. Much of the growth in mobile phone use has been realised in the past few years as consumers have rapidly adopted wireless broadband services via 3G dongles. This strong desire for remote internet connectivity has not been tempered by the relative high usage prices of mobile versus fixed broadband services. For these reasons, industry research firm IBISWorld has updated its report on the Mobile Telecommunications Carriers industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Increasing mobile internet usage has helped drive revenue growth

Mobile phones have become the principal means of telephone communications and a life necessity. Much of the growth in mobile phone use has been realised as consumers have rapidly adopted wireless broadband services via 3G dongles. This strong desire for remote internet connectivity has not been tempered by the relative high usage prices of mobile versus fixed broadband services. As a result, revenue for the Mobile Telecommunications Carriers industry in Australia is forecast to grow 4.5% per annum over the five years through 2011-12. Growth in 2011-12 will be lower than the five-year average at 2.7%, while subscriber numbers increase by 5.9%. For the year, revenue is expected to hit $20.3 billion. According to IBISWorld industry analyst Craig Shulman, “Revenue will expand slower than subscriber numbers due to intense price competition among the three mobile network operators, despite rapid growth in usage”.

Over the next five years, IBISWorld expects the number of services in operation to grow at reduced rates. Demand for smartphones and new 3G-enabled digital reader devices, such as the iPad, should remain high in the near term. However, the percentage growth in subscriber gains will begin to subside as 3G subscriber numbers reach saturation and wireless tethering prevalence increases. “This will put downward pressure on revenue growth as usage margins are further slashed”, Shulman adds. The explosion of mobile data usage will continue with the arrival of 4G services and offset the slimmer margins. Recently, revenue growth has been stimulated by a rapid increase in non-messaging data revenue, due to the large gains in mobile internet usage. This trend will continue in the near term and become even more pronounced as 4G services are adopted over the next five years.

The Mobile Telecommunications Carriers industry has one of the highest levels of concentration in the Australian economy. In 2011-12, the three major players are Telstra, SingTel Optus and Vodafone Hutchison Australia. In early 2009, four national network providers became three when Vodafone and Hutchison agreed to merge their Australian mobile operations. The combined entity, VHA, markets its products and services under the Vodafone brand, but retained exclusive rights to use the 3 brand in Australia. VHA has the scale and resources necessary to pose a serious threat to the number two player, Optus. Despite this merger, concentration will not change given there is not a significant player to take the number four position.

For more information, visit IBISWorld’s Mobile Telecommunications Carriers report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

The industry includes businesses devoted to operating and maintaining transmission and switching facilities to deliver direct communications via airwaves. Included in this industry are establishments that provide wireless telecommunications network services and those that supply and maintain equipment used to receive signals.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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