Question 1

Is the mobile market still the primary driver of profitability for major carriers?

Accepted Answer

Mobile remains the dominant growth engine, evidenced by Telstra’s 21.2% EBITDA increase to $3.997 billion in FY22. This growth is fueled by significant ARPU expansion, including a 14.3% jump in prepaid and a 2.9% rise in post-paid segments.

Question 2

How is the competition for business customers changing with NBN's expansion?

Accepted Answer

NBN Co has successfully disrupted the enterprise market, reaching a $1 billion B2B revenue target and causing a 13.3% revenue decline in Telstra’s legacy data and connectivity business. This shift indicates that Enterprise Ethernet is now a primary threat to established fixed-line providers.

Question 3

What is the current state of the Australian fixed broadband market?

Accepted Answer

The market has reached a point of stagnation, with underlying growth at a marginal 1.4% once migration figures are excluded. Major players are now prioritizing margins over volume, resulting in Telstra losing 87,000 fixed broadband subscriptions in a single fiscal year.

Question 4

Are there any high-growth areas left in the enterprise segment?

Accepted Answer

Network Applications and Services (NAS) have emerged as a high-performance niche, with Telstra reporting a 93.8% increase in EBITDA for this category. This growth provides a necessary hedge against the decline of traditional fixed-line data revenues.

NBN and Telstra: Mobile grows while fixed languishes

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