Wired Telecommunications Network Operation in Australia Industry Market Research Report Now Updated by IBISWorld

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The rollout of the National Broadband Network is expected to provide some opportunities for the industry and shake up the industry operating environment. For these reasons, industry research firm IBISWorld has updated its report on the Wired Telecommunications Network Operation industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Increasing use of mobile telecommunications is decreasing demand for wired telecommunications.

The need to communicate is an integral part of the everyday lives of Australian households, businesses and government offices. However, the ways in which people communicate are changing, and this is having a negative effect on the Wired Telecommunications Network Operation industry. The industry involves the operation of hardline telephony and data (largely voice services over landlines). Australians now place greater importance on constant connectivity and as such, mobile phones are the dominant form of communication. Voice over internet protocol (VoIP) is an increasingly common choice for long-distance calls. IBISWorld industry analyst Nick Flores states “the growing prominence of non-wired telecommunications usage has been significantly bolstered by a high adoption of broadband internet and mobile devices that provide increasingly sophisticated internet capabilities.” Strong price competition between fixed and mobile providers has contributed to the diminished use of fixed lines, to the detriment of the industry. Revenue is forecast to decline by an annualised 9.0% over the five years through 2013-14 to $10.6 billion. In 2013-14, revenue is forecast to decline by 12.1% as the result of declining fixed line services coupled with the rising portion of mobile-only Australians (individuals who only use mobile phones for voice services). Nevertheless, wired communication services still perform an essential role in society. Businesses in particular have been a steadier source of demand for the industry, as they often are physically static and find it more cost-effective to use a variety of wired telecommunication connections rather than a variety of wireless connections.

Over the next five years, IBISWorld expects the number of households cancelling their fixed access lines to continue growing as internet and wireless capabilities increase. The growing popularity of 4G smartphones will make VoIP services even more mobile. According to Flores, “the construction of the National Broadband Network (NBN) is expected to provide some respite as households and businesses upgrade their connections to take advantage of a superior product.” It is also expected to shake up Telstra's dominance of the industry, as Telstra's flagship public switched telephone network (PSTN) service will gradually become obsolete.

IBISWorld estimates the top four industry participants account for a very high level of concentration. Within the Wired Telecommunications Network Operation industry, concentration levels vary between different services. Telstra dominates the local access market, as it provides over three-quarters of the total access lines through the PSTN. Contrasting this is the long-distance calling market, where Telstra's concentration level is relatively lower, albeit still high. The long-distance segment is very competitive, with a number of smaller players competing effectively via the use of phone cards. The industry’s major players are Telstra Corporation and SingTel Optus. For more information, visit IBISWorld’s Wired Telecommunications Network Operation report in Australia industry page.

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IBISWorld industry Report Key Topics

Businesses in this industry provide voice and data services via landlines, microwaves or satellite link-ups. Services include fixed wire telephony, wired network and cable services, including ISDN and ATM frame relay. Industry participants operate and maintain their own switching and transmission facilities or may own a fixed line telephone network system consisting of wires or fibre optic cable. Spare capacity is sold to other telecommunication carriers or resellers.

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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