Question 1

Why is revenue stagnating despite an increase in our customer base?

Accepted Answer

Intense competition in both fixed and mobile segments has decoupled subscriber growth from revenue performance. Telstra’s 14.8% decline in prepaid ARPU during 1H20 demonstrates that high-volume acquisition is currently being offset by aggressive price-cutting in the retail market.

Question 2

Which specific segments are still showing growth potential?

Accepted Answer

Wholesale and emerging technology segments are the primary growth drivers. Telstra recorded a 5% increase in Wholesale MVNO revenue and a 23% surge in IoT connections, which have now reached 3.5 million units.

Question 3

How is the fixed-line market performing for the major players?

Accepted Answer

The fixed-line market shows significant volatility as NBN migration continues. Optus reported a 46% revenue increase in its Retail Fixed segment for 3QFY20, even as enterprise-level revenues face disruption from smaller competitors.

Question 4

What are the most effective levers for reducing customer churn right now?

Accepted Answer

Aggressive 5G rollout is the critical factor for driving subscriber churn away from competitors. Additionally, integrating media and gaming into bundling strategies is now essential to stabilize ARPUs and improve long-term customer retention.

Telstra and Optus: Falling ARPUs, increase in price sensitive market and Enterprise declines

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