Question 1

How are the major Australian telcos performing after the NBN transition?

Accepted Answer

Telstra's EBITDA declined 11.5% to $7.4 billion, primarily due to a $650 million headwind from NBN wholesale costs. Conversely, NBN Co reached profitability for the first time with an EBITDA of $1.3 billion as it captures higher payments from retail providers.

Question 2

Is there still room for growth in the retail broadband market?

Accepted Answer

Challenger brands are significantly outperforming incumbents, evidenced by Aussie Broadband’s 433% EBITDA growth to $19.1 million on the back of an 84% revenue surge. Smaller players are successfully scaling while larger operators face margin compression from wholesale cost structures.

Question 3

How are operators responding to the high cost of NBN wholesale services?

Accepted Answer

Operators are shifting toward 5G Fixed Wireless Access to bypass NBN costs, with TPG pricing unlimited 5G Home plans at $75 per month. This strategy aims to protect margins by migrating customers from the NBN50 tier to owned mobile infrastructure.

Question 4

Where is the most resilient earnings growth coming from in the current market?

Accepted Answer

Diversification into digital infrastructure is yielding the highest returns, as seen with Macquarie Telecom generating 75% of its EBITDA from data centers and cloud services rather than traditional carriage. This shift follows seven consecutive years of EBITDA growth for the provider.

Monthly Telco Roundup of August 2021

Abstract

Key Takeaways

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

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