IBISWorld Market Research
The strong desire for remote internet connectivity has not been tempered by the relatively high usage prices of mobile versus fixed broadband services
Melbourne, Australia (PRWEB) August 04, 2014
Wireless Telecommunications Carriers in Australia are companies that own the wireless infrastructure that enables voice and data services, and radio and television relays. The industry has exhibited strong growth on the back of the popularity of smartphones. Industry revenue is forecast to grow by an annualised 3.0% in the five years through 2014-15. According to IBISWorld industry analyst Nick Flores, “mobile phones have become the primary means of telephone communications and a life necessity.” The high number of subscribers can be attributed to a significant rise in mobile service popularity over the past five years. Consumers have rapidly adopted wireless broadband services via smartphones, tablets and 3G dongles. The strong desire for remote internet connectivity has not been tempered by the relatively high usage prices of mobile versus fixed broadband services. Revenue is forecast to expand by 1.9% in 2014-15, to $21.6 billion.
Competition in the industry has been high, primarily through intensifying price competition, as the market approached 3G service saturation and operators became more concerned with maintaining their subscription base. Prior to 2011-12, network operators chose to cut 3G prices in an effort to grow their revenue streams and increase their share of the market. Since 2011-12, however, profit concerns have returned to the fore as industry operators have increasingly sought to maintain profitability by reducing their cost base. Major players such as Telstra and Vodafone have sought to boost profit margins partly by reducing their workforce. Over the next five years, the number of mobile subscribers is expected to increase as demand for smartphones and new digital reader devices, such as the iPad, remains high. “The explosion of mobile data usage is expected to continue with the arrival of 4G services, which will maintain some of the momentum of the past five years,” says Flores. Ultimately, the stabilisation of subscriber numbers and the commodified voice market mean revenue growth will largely come from technological advancements.
The Wireless Telecommunications Carriers industry has one of the highest levels of concentration in the Australian economy. The major players are Telstra Corporation Limited, SingTel Optus Pty Limited and Vodafone Hutchison Australia Pty Limited. Since deregulation in 1997, the number of industry participants has increased to include four national network providers. With Australia being an isolated and relatively small market of approximately 22.0 million people, the industry became easily overcrowded. In early 2009, Vodafone and Hutchison agreed to merge their Australian mobile operations. The combined entity, Vodafone Hutchison Australia (VHA), markets its products and services under the Vodafone brand. The high concentration in the industry is largely influenced by its high capital intensity, combined with the need to spread fixed costs across a large user base so as to maintain commercial viability.
For more information, visit IBISWorld’s Wireless Telecommunications Carriers report in Australia industry page.
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IBISWorld industry Report Key Topics
The industry includes businesses that operate and maintain transmission and switching facilities to deliver direct communications via airwaves. This industry also includes establishments that provide wireless telecommunications network services, and those that supply and maintain equipment used to receive signals.
Industry Performance
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Products & Markets
Supply Chain
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International Trade
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Competitive Landscape
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Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
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