Question 1

Is the NBN still managing to increase its revenue per user despite the competition?

Accepted Answer

Residential ARPU reached $45 in FY20, supported by the fact that 69% of customers are now on plans of 50/20 Mbps or higher. However, this growth faces immediate risk from 5G fixed wireless alternatives, particularly as 43% of surveyed consumers identify price as their primary motivation for switching providers.

Question 2

How much of a threat is the NBN to Telstra’s business and enterprise dominance?

Accepted Answer

The threat is substantial, with nbn Co on track to derive 25% of its total revenue from the enterprise market by FY23. This aggressive expansion is the primary catalyst for a forecast 3.6% CAGR decline in corporate data and IP revenues across the sector through FY23.

Question 3

What is the overall growth outlook for the Australian telecom sector over the next few years?

Accepted Answer

The market is entering a period of contraction, with a forecast 0.6% CAGR decline through FY23 driven largely by COVID-19 impacts. Operators face stagnant mobile ARPUs and limited financial upside from 5G, shifting the competitive focus toward sports streaming and wholesale margin protection.

Question 4

Are wholesale and MVNO markets still expanding?

Accepted Answer

Telstra recorded 28% growth in its MVNO customer base in FY20, indicating strong demand for budget-friendly secondary brands. This volume growth creates a secondary risk where MNOs may be forced to raise wholesale prices to protect their own retail margins as mobile ARPU remains under pressure.

Telstra and nbn Co FY20 update: increasing wireless and enterprise competition will drive price pressure

Abstract

Key Takeaways

Frequently Asked Questions

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team