Question 1

Where is the primary growth coming from in the Australian market over the next few years?

Accepted Answer

Growth is concentrated in mobile and data services, with the total retail market expanding at a 2.7% CAGR to reach $41.0 billion by 2020. Mobile revenue will lead this expansion, growing at a 5.3% CAGR to reach $22.5 billion and capturing 52% of the total retail wallet.

Question 2

How quickly is the traditional landline business disappearing?

Accepted Answer

The decline is structural and accelerating, with fixed voice revenues projected to contract at a 15.8% CAGR through 2020. This segment's market share will collapse to just 10% by 2020, a steep drop from the 35% share it held in 2010.

Question 3

What will the wholesale landscape look like as the NBN rollout finishes?

Accepted Answer

The wholesale market will undergo a massive shift, with total revenues growing at a 20.2% CAGR. By 2020, the NBN is expected to account for 62% of the wholesale market as its revenue grows 12-fold from $0.4 billion in FY16 to $5.0 billion in FY20.

Question 4

How are recent regulatory decisions impacting mobile operator margins?

Accepted Answer

ACCC regulatory changes have halved mobile voice termination rates to 1.7 cents per minute, directly squeezing mobile player revenues. Operators must rely on the 5.3% CAGR in mobile data and services to offset these regulatory headwinds and reach the projected $22.5 billion segment valuation.

Telecommunications Market Outlook

Abstract

Key Takeaways

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

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