Question 1

When will the heavy investment in 5G start generating meaningful returns?

Accepted Answer

Significant revenue from enterprise 5G use cases is not expected to materialize until the middle of the decade, leaving a multi-year gap in growth. Current profitability remains under intense pressure, as demonstrated by Telstra’s 14.7% EBITDA decline in H1 FY21.

Question 2

Is the fixed-line broadband market facing a genuine threat from mobile networks?

Accepted Answer

Mobile Network Operators are aggressively positioning 5G fixed wireless as a primary alternative to the NBN, with subscriptions forecast to exceed 1 million by 2024. This transition, coupled with the entry of LEO satellite providers, will force retail service providers to raise prices to recover invested capital.

Question 3

How are major players restructuring their balance sheets to improve efficiency?

Accepted Answer

Operators are accelerating structural separation to unlock capital, with Telstra selling 49% of its tower business and Optus planning a 70% divestment of passive assets. These moves are critical to meeting ambitious cost-reduction goals, such as Telstra’s $2.5 billion net improvement target for FY22.

Question 4

Which non-core service areas offer the most immediate revenue potential?

Accepted Answer

Cybersecurity has become a primary growth domain for ICT providers following a 60% increase in ransomware attacks against Australian entities. Beyond security, the end of the NBN migration phase allows operators to shift focus from volume acquisition to margin expansion through retail price adjustments.

5-year Outlook: Telco Market in Australia and NZ

Abstract

Key Takeaways

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team