Publication Overview
For those needing detailed overviews and statistics as well as objective analysis on all aspects of second tier market, this report provides essential reading and gives in-depth information on:
· Company overviews and structure of the following: AAPT, Amcom, Austar, Commander, Foxtel, gotalk, Hutchison, iiNet, Macquarie Telecom, Nextgen Networks, People Telecom, Primus, Soul, TransACT, Unwired, and Vodafone;
· Major divisions and subsidiaries;
· Financial and operating statistics;
· Marketing and financial analyses and strategic overviews;
· Network overviews.
In a separate report the following Australian companies are covered: Telstra and Optus. See 2008 Australia - Telco Company Profiles - Telstra and Optus
Researchers:- Phil Harpur. Paul Budde
Current publication date:- September 2008 (14th Edition)
Next publication date:- September 2009
Executive Summary
AAPT
AAPT is Australia’s third largest telecommunications carrier and is a wholly-owned subsidiary of Telecom New Zealand, which acquired both AAPT and PowerTel and combined them under the same operating structure. AAPT has launched ADSL2+ broadband services with access speeds of up to 20Mb/s The telco continues to struggle, especially on the business side. AAPT’s new strategy focuses around the mass market bringing business offerings to home and small businesses.
Amcom
Amcom is a second-tier telecommunications carrier providing fibre, DSL broadband and Internet services to the corporate, wholesale, government and SME markets. Amcom is one of the best placed telcos in the Australian market with excellent prospects for future growth and remains a well managed and focused business.
Austar
Austar United Communications is Australia’s second largest subscription TV operator after Foxtel. The company offers primarily digital satellite services to customers in regional and rural areas. It also offers dial-up Internet and mobile telephone services. Austar’s strategy for 2009 will be to continue to drive penetration growth in its core TV business.
Foxtel
Foxtel is Australia’s largest subscription television provider. Telstra holds a 50% ownership stake in Foxtel, while PBL and News Corp. both share a 25% stake in the company. Foxtel has launched its second generation, High Definition PVR service called Foxtel HD+.
Hutchison
Hutchison Telecommunications (Australia) launched Australia’s first 3G network. The company has been a leader in developing new services and applications. Of particular note is its competitively priced mobile broadband plans over its HSDPA network and its X-Series Internet applications suite. Hutchison will boost its coverage to 96% of the population during 2009.
iiNet
Perth-based iiNet is the third largest ISP in Australia and provides broadband access, including ADSL2+; web hosting, and VoIP services. iiNet has its own DSLAM access equipment already deployed in over 300 exchanges. Naked DSL has been a particular success for the telco and are now around 60% of iiNet’s total sales. The service is not only delivering new revenues but also increasing usage of VoIP.
Macquarie Telecom
Macquarie Telecom is a supplier of ICT for the business and government markets. It provides a range of voice, data, mobile and hosting solutions to over 3,000 corporate and government customers. Macquarie’s current focus is to drive profitable growth through leveraging changes in communications technology for medium to large sized business and government customers.
Nextgen Networks
Nextgen Networks is a telecommunications carrier that specialises in data services for Carriers, Service Providers, Government and Corporations and owns and operates Australia’s 3rd largest national fibre network. Nextgen recently acquired Silk Telecom, which substantially enhances Nextgen’s metro fibre footprint in Vic, SA and WA.
People Telecom
People Telecom’s strategy and differentiation in the marketplace is to act as a ‘one stop shop’ for SMEs, providing a full range of voice and data products, on a unique integrated delivery platform.
Primus Telecommunications Australia
Primus Telecommunications Australia is a facilities-based total service provider offering local, domestic and international telephony, data, ADSL, ADSL2+, web hosting, VPNs and mobile services. Primus has begun upgrade of its fibre-optic network which will offer customers speeds as high as 10Gb/s.
Soul
Soul is a provider of IP telecommunications and multimedia services in the Australian marketplace. Services including voice, Internet and data solutions are provided to a customer base ranging from the consumer market through to the SME, corporate and government sectors. Time will tell if its recent acquisitions of ISPs TPG and Chariot will give it any market traction.
Unwired
Unwired currently provides a type of proprietary pre-WiMAX wireless broadband Internet services to the residential, SOHO and SME markets. Having initially targeted an early 2008 rollout for mobile WiMAX, Unwired has now pushed back plans to 2009.
Vodafone
Vodafone Australia the third largest mobile carrier in Australia after Telstra and Optus and remains in its position that it basically has had for the last 15 years. It has been unable to catch up with the big two, with its market share of both mobile subscribers and overall mobile service revenues hovering around the 16% to 17% mark, for the past couple of years. BuddeComm predicts that this market share will remain fairly stable in 2009 and 2010.
Key highlights:
· AAPT’s strategy is to deliver growth through the execution of on-net and service-layer strategies together with focused product and channel strategies.
· Amcom recent revenue growth is a product of its fibre investments, driven by the recent resource boom.
· Austar has moved into the direction of digital media via partnerships with Unwired and Soul. More more can be expected in this area, especially in relation to TV and video entertainment.
· Through its unsuccessful turnaround strategy, Commander shed more than 600 jobs and offloaded non-core assets in an attempt to revive its fortunes. However Commander was unable to reduce its heavy debt load because the cash received from asset sales was eaten up in costs.
· Foxtel is committed to expanding its HD+ PVR service from 2009 with the launch of a new satellite and access to increased cable capacity.
· The mobile market allowed Hutchison to charge a premium price for its service when it was the first to launch a 3G service, however that situation is now well and truly over.
· The acquisition of ISP Westnet in May 2008, has increased iiNet’s scale and reach, particularly in Western Australia.
· Macquarie Telecom in the long term should benefit from its deep structural changes that underwent over the past few years.
· Vodafone Australia has often proven to be a leader in innovative new products and pricing packages and has consistently maintained a successful and aggressive advertising and marketing campaign targeted at the youth market.
Data in this report is the latest available at the time of preparation and may not be for the current year.