Question 1

What is the overall growth outlook for the Australian B2B fixed market through 2026?

Accepted Answer

The market is entering a period of stagnation, with total revenue projected to reach $6.8 billion by FY26 at a flat 0.1% 5Y CAGR. This follows a 3.1% contraction during the FY19-21 period, indicating a stabilization rather than a robust recovery.

Question 2

Which specific service areas are still generating revenue growth?

Accepted Answer

Value is shifting toward managed and professional services, which are forecast to grow at a 2.5% CAGR to reach $3.2 billion by FY25. These services are currently the primary mechanism for offsetting the structural decline in legacy MPLS and fixed voice revenues.

Question 3

How fast are traditional phone services disappearing?

Accepted Answer

Legacy PSTN and ISDN services are in a state of rapid collapse, declining at a -14.0% CAGR as users migrate to digital alternatives. While IP Voice is growing at a 4.5% CAGR, it is failing to fully capture the value transfer as enterprises increasingly adopt over-the-top (OTT) solutions.

Question 4

Which customer segments offer the best prospects for telcos?

Accepted Answer

The Enterprise segment, consisting of businesses with over 200 employees, is the most resilient group with a projected 1.2% 5Y CAGR. While the SMB segment is struggling, 46% of these smaller businesses reported plans to increase their IP voice spend as of late 2022.

B2B Fixed Services in AU: Market Forecast

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