Slowing wireless growth & the rise of broadband challengers

MNOs face slowing wireless growth and fixed-line losses as smaller challengers and non-telco brands gain market share.

Heath Gibson · Executive Manager – Industry Intelligence and Insights at NBN Australia1 March 2024Period: H2 20234 min read

509,000↑

Total MNO FWA Subscribers (Dec-23)

58%↑

Telstra FWA Subscriber HoH Change (Dec-23)

Locked

+1more stats

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Abstract

This report analyses the state of the Australian broadband market following the December 2023 reporting season. It highlights a milestone of over 500,000 MNO fixed wireless (FWA) services in operation, while noting that the 'Big 3' operators (Telstra, Optus, TPG) are experiencing fixed subscriber losses. The analysis explores how these major players are prioritising ARPU and margin gains over subscriber volume in response to increased competition from smaller challengers and non-telco brands.

Key Takeaways

Australia reached a milestone of over 500,000 MNO fixed wireless services in operation by December 2023.
Overall FWA growth is slowing, with 47k services added in the latest half compared to 52k in the previous period.
Telstra led FWA growth with 25k new 5G services, bringing its total to 68k, a 58% half-on-half increase.

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Frequently Asked Questions

The market has surpassed a milestone of 509,000 fixed wireless services, though the pace of expansion is cooling. Total net additions for the December 2023 half reached 47,000, a decline from the 52,000 services added in the preceding period.

The 'Big 3' are successfully prioritizing profitability over subscriber volume. TPG recorded a 13.6% increase in fixed broadband average margin per user, while Telstra expanded its nbn reseller margin to 10%, up from 7% in the prior year.

Telstra is the primary driver of 5G growth, adding 25,000 new services in the latest half. This represents a 58% half-on-half increase, bringing its total fixed wireless base to 68,000 services.

Price hikes for NBN plans below 100 Mbps have opened a 6-12 month window for operators to acquire price-sensitive customers. This shift allows the major players to defend an $81.67 consumer and small business ARPU by migrating users to more competitive fixed wireless offerings.

Slowing wireless growth & the rise of broadband challengers

Abstract

Key Takeaways

Frequently Asked Questions

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