Australia B2B Fixed Forecast 2024

Legacy voice declines as IP voice and network services drive modest growth in a subdued economic environment.

David Kennedy · Venture Insights17 September 2024Period: FY248 min read

$7.192B↑

Total B2B Fixed Services Market (FY28)

0.9%↑

Total Market 5Y CAGR (FY23-FY28)

Locked

+2more stats

Companies covered:

Abstract

The Australian B2B fixed services market, encompassing business voice, connectivity, and related services, is projected to reach $7.192 billion by FY28, growing at a modest 0.9% CAGR. Legacy fixed voice services will decline rapidly, while IP voice, Ethernet, Internet, and network services will drive medium-term growth. The Enterprise fixed services market is estimated at $4.518 billion in FY23, growing at 1.2% CAGR. SMBs, recovering from the pandemic, will see limited growth due to legacy voice decline.

Key Takeaways

The Australian B2B fixed services market will reach $7.192 billion by FY28, growing at a modest 0.9% CAGR.
Network services (managed and professional) are the primary growth engine, forecast to grow at 2.6% CAGR to $3.619 billion.
Legacy voice revenues are collapsing at a -13.1% CAGR as businesses migrate to IP voice and cloud solutions.

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Frequently Asked Questions

The market is entering a period of stagnation with a modest 0.9% CAGR, projected to reach a total value of $7.192 billion by FY28. While total growth is low, the Enterprise segment remains the most resilient sub-sector, forecast to reach $4.800 billion by the end of the period.

Managed and professional network services are the primary growth engine, expanding at a 2.6% CAGR to reach $3.619 billion by FY28. This growth is essential to offset the rapid collapse of legacy voice revenues, which are declining at a rate of 13.1% annually.

Telstra continues to dominate the market with a 31% revenue share, maintaining a significant lead over Optus at 13% and TPG Telecom at 11%. Competition is increasingly dictated by network performance, which enterprises rate as their top priority with a decision factor score of 4.12.

The segment is constrained by a near-zero CAGR of 0.2% because gains in Ethernet and high-speed internet are being neutralized by an 8.2% annual decline in IP-VPN revenues. Providers must transition customers to modern connectivity architectures to maintain margin stability.

Australia B2B Fixed Forecast 2024

Abstract

Key Takeaways

Frequently Asked Questions

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