Question 1

Why are retail prices rising if the telecoms sector index is underperforming?

Accepted Answer

Providers are shifting to 'more for more' pricing to address a 25% decline in the Telecoms Hardware & Services sub-index relative to CPI since 2012. This strategy aims to stabilize falling Return on Invested Capital (ROIC) even as average monthly data consumption reached 425GB in late 2022.

Question 2

How much of a threat is 5G home internet to traditional fixed-line services?

Accepted Answer

Home wireless plans now serve as a aggressive price floor, retailing at an average of 77% of the cost of equivalent nbn speed tiers. This 23% discount creates significant competitive pressure on fixed-line margins, particularly in segments where nbn wholesale costs remain high.

Question 3

What is the current industry standard for high-speed customer acquisition?

Accepted Answer

Retailers are using aggressive front-end discounts averaging $100 to migrate users toward Ultrafast tiers. These strategies are designed to move customers onto premium products like Telstra’s 700 Mbps plan, which commands a $180 monthly fee.

Question 4

Are non-telco competitors like energy companies gaining real traction?

Accepted Answer

Energy retailers are successfully disrupting the market by offering monthly bundling discounts between $10 and $15. This allows them to capture a larger share of the 2.27% of household expenditure typically dedicated to communications services.

Australian Consumer Broadband Pricing 2023: Pricing Trends

Abstract

Key Takeaways

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team