Question 1

Is the enterprise telecommunications market finally seeing a recovery in revenue?

Accepted Answer

Yes, Telstra Enterprise returned to growth in FY22 with revenue reaching $5.4B, a 3.0% year-on-year increase. This recovery is supported by a significant 12.6% rise in EBITDA to $1.4B, driven largely by mobile and digital service segments.

Question 2

Which specific services are driving growth for major carriers?

Accepted Answer

Mobile services are the primary growth engine, with Telstra reporting a 25.8% increase in mobile EBITDA and a 10.7% rise in revenue. Network Applications and Services (NAS) also showed exceptional performance, with EBITDA growing by 93.8% over the fiscal year.

Question 3

How much market share is NBN Co capturing from traditional business providers?

Accepted Answer

NBN Co has become a formidable competitor, hitting its $1B annual business revenue target following a 20% increase in the last year. Although underlying connection growth is modest at 1.4% excluding migrations, the entity is successfully capturing the shift toward standardized business connectivity.

Question 4

What is the outlook for traditional fixed data and MPLS networks?

Accepted Answer

Legacy fixed data is in sharp decline as customers migrate to cheaper Layer-2 Ethernet services, resulting in a 28.4% drop in Telstra’s Data & Connectivity EBITDA. The Australian Ethernet services market is now estimated at $450M and is expected to maintain a 2.6% five-year CAGR.

Monthly Enterprise Roundup of July 2022

Abstract

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Abstract

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Frequently Asked Questions

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