Question 1

How much market share is nbn expected to take from established enterprise players?

Accepted Answer

nbn is on track to hit a $1.0 billion annual wholesale revenue target by 2022, shifting the market from an infrastructure oligopoly to an open-access model. This expansion is backed by a $700 million investment in 240 Business Fibre Zones designed to reach 1.4 million business premises.

Question 2

What is the projected impact on industry-wide corporate data revenues?

Accepted Answer

The entry of nbn into the enterprise space will trigger a -3.6% CAGR decline in Corporate Data and IP revenues between 2019 and 2023. This commoditisation of Layer 2 fibre forces incumbents to defend their margins against a permanently higher level of competition.

Question 3

How are major incumbents like Telstra responding to this new competition?

Accepted Answer

Telstra is aggressively protecting its footprint of 60,000 connected buildings through significant price actions, including 50% cuts for Internet Direct Lite in mid-2020. Despite these defensive measures, the largest incumbents remain the most vulnerable to nbn’s wholesale scale and reach.

Question 4

Is nbn still competing directly for end-user contracts?

Accepted Answer

After an aggressive push for direct deals in 2018 and 2019, nbn has largely pivoted away from end-user engagement to focus on its wholesale mandate. This shift addresses concerns from retail service providers who argue nbn should complement their infrastructure rather than compete for the same enterprise clients.

nbn’s enterprise market strategy: complementary or competitive?

Abstract

Key Takeaways

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

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