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Wireless Telecommunications Carriers in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Aug 04, 2014, 09:00 ET

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IBISWorld Market Research
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

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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.

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

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
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.

Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]

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