Question 1

Is there any meaningful growth left in the Australian business fixed market?

Accepted Answer

Growth is marginal, with total revenues projected to reach A$7.124 billion by FY28 at a 1.2% CAGR. While connectivity is commoditising, managed and professional services represent the primary expansion opportunity with a 2.8% CAGR.

Question 2

How severe is the decline in traditional voice services for New Zealand operators?

Accepted Answer

The outlook is critical as the FY25 copper network shutdown accelerates the collapse of legacy systems. New Zealand B2B voice revenues are projected to contract at a sharp -15.3% CAGR through 2028.

Question 3

Can growth in modern data and internet services offset the loss of legacy networking revenue?

Accepted Answer

No, the data and internet segment is largely stagnant with a projected CAGR of just 0.2% in Australia. Gains in Ethernet and standard internet are being neutralized by the rapid abandonment of high-margin legacy IP-VPN services.

Question 4

What is the immediate financial impact on the region's major incumbents?

Accepted Answer

Incumbents are facing severe margin compression, evidenced by Spark's 1.6% decline in total IT revenue during FY24. Major players like Telstra and Optus are being forced into aggressive cost-cutting and asset write-downs to maintain profitability.

ANZ business fixed market to remain under pressure

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