2009 Australia - Telco Company Profiles - Telstra and Optus

Last updated: 2 Feb 2010 Update History

Report Status: Archived

Report Pages: 112

Analyst: Paul Budde

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Summary
Table Of Contents

Publication Overview

For those needing detailed overviews and statistics as well as objective analysis on all aspects of Telstra and Optus, this report provides essential reading and gives in-depth information on:

· Company overviews and structure;

· 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: AAPT, Amcom, gotalk, iiNet, Internode, Macquarie Telecom, M2 Telecommunications, Nextgen Networks, TPG Telecom (Soul), TransACT, and Vodafone Hutchinson Australia (VHA). See Australia - Telco Company Profiles - 2^nd Tier.

Researcher: Paul Budde

Current publication date:- January 2010 (15^th Edition)

Next publication date:- December 2010

Executive Summary

Telstra Corporation Limited

Telstra is Australia’s largest telecommunications provider offering a full range of telecom services throughout Australia including: basic access services to most homes and businesses, local and long-distance telephone call services, mobile and Internet services. This report provides an overview of Telstra’s main areas of operation, strategic business units, local and international subsidiaries, a brief financial result summary, as well as key operating statistics in areas including network and operations data, billable traffic data, and mobile, broadband and pay TV subscribers up to June 2009. An overview of its Next Generation Network and its ADSL network is also provided.

The report also provides financial results for Telstra, together with an overview of the key highlights during each period. Half year results are also included. Detailed financial statistics and comparisons are given for each of Telstra’s service areas including mobile, Internet and IP solutions, Sensis, PSTN and international operations.

Soon after the government announced the National Broadband Network (NBN) in April 2009, a new management team was appointed, led by the new CEO David Thodey. They immediately announced their support for the NBN and their willingness to work together with the government. The company also put their weight behind the trans-sector concept as that will be the avenue to generate new revenue. Negotiations were launched with the government investigating how Telstra could best participate, including taking a shareholding in NBN Co.

Optus

Optus provides a range of communications services including mobile, national and long-distance services, local and international telephony, business network services, Internet and satellite services and subscription TV. This report provides an overview of the main divisions within Optus including: Consumer, Business, Small and Medium Business and Wholesale and Satellite. A breakdown of key operating statistics is provided for Internet, broadband, voice, and pay TV services, along with highlights of the company’s financial results.

Financial summaries for Optus are provided for the years 1997 to 2009. For the 2008/09 financial year, results include revenue and EBITDA for each main operating division – Mobile, Business, Wholesale, Consumer and SMB fixed; revenue breakdowns for each service division: Mobile, Voice, Internet, pay TV, data and IP, satellite, ICT and Managed Services and a detailed breakdown of revenues with each of these service divisions. Financial and marketing analysis of Optus’ 2009 financial results and a market analysis for 2009 are also included.

The Optus Customer Access Network comprises a fibre and HFC network. The fibre network serves major business customers via Optus laid fibre in all capital cities, major suburban business districts and major regional centres, and also provides transmission capacity between the Optus network facilities (exchanges and fibre access nodes) and to many of Optus’ DSLAM sites. The HFC network is a wholly Optus owned network used for telephony, high-speed data and pay television to residential, non-business, customers. Digital switching facilities have been constructed in major cities, with fibre optic cable linking these exchanges. The company also has satellite facilities. The company launched its 3G services in Sydney, Canberra, Melbourne, Brisbane, Adelaide and Perth. The network has been upgraded with HSPA technology to deliver broadband speeds of up to 7.2Mb/s.

Data in this report is the latest available at the time of preparation and may not be for the current year.

1. Statistical overview
- 1.1 Total telecommunications services market
  - 1.1.1 Revenue, revenue growth and market share by major provider
- 1.2 Telstra
  - 1.2.1 Analysis of financial results
- 1.3 Optus
  - 1.3.1 Financial overview
- 1.4 2nd tier market
  - 1.4.1 Market overview
  - 1.4.2 Revenue by company
2. Telstra – overview and operating statistics
- 2.1 Company overview
  - 2.1.1 Business units
- 2.2 Business systems
- 2.3 Media
  - 2.3.1 Sensis
- 2.4 Networks
  - 2.4.1 Telstra’s Next Generation Network (NGN)
  - 2.4.2 Telstra’s ADSL network
- 2.5 Analysis
  - 2.5.1 National Broadband Network
- 2.6 Controlled and associated entities
- 2.7 Operating statistics – 2009
  - 2.7.1 Fixed line and mobile voice minutes of use
  - 2.7.2 Fixed-line, mobile and broadband services in operation
  - 2.7.3 Statistical tables
- 2.8 Brief financial results summary
3. Telstra – financial statistics
- 3.1 Group results summary
- 3.2 Results for year ending June 2009
  - 3.2.1 PSTN revenue
  - 3.2.2 Mobile revenue
  - 3.2.3 Internet revenue
  - 3.2.4 IP and data access
  - 3.2.5 International operations
  - 3.2.6 Capital expenditure
- 3.3 Results for year ending June 2008
  - 3.3.1 PSTN revenue
  - 3.3.2 Mobile revenue
  - 3.3.3 Internet revenue
  - 3.3.4 IP and data access
  - 3.3.5 Telstra business services and applications revenue
  - 3.3.6 International operations
  - 3.3.7 TelstraClear
  - 3.3.8 Sensis
  - 3.3.9 Capital expenditure
4. Telstra and the NBN
- 4.1 Telstra and government agree on NBN future
  - 4.1.1 Terms of Engagement
  - 4.1.2 Analysis of the arrangement
- 4.2 The new Telstra?
- 4.3 BuddeComm and Telstra
- 4.4 Telstra – where to go from here? – November 2009
- 4.5 Telstra’s shareholders issue – October 2009
  - 4.5.1 Looking after shareholders means looking after their future
  - 4.5.2 Profits will come from growing the telco pie
  - 4.5.3 Government supports socio-economic benefits
  - 4.5.4 Shareholders’ ignorance
  - 4.5.5 Nevertheless they will be winners
  - 4.5.6 Highly focussed management needed
5. Sensis
- 5.1 Company information
- 5.2 Sensis distribution channels
- 5.3 Chinese operations
  - 5.3.1 SouFun.com
  - 5.3.2 Online advertising businesses
- 5.4 Financial results
  - 5.4.1 Summary tables
  - 5.4.2 Year to June 2009
  - 5.4.3 Year to June 2008
- 5.5 Latest developments
  - 5.5.1 Trading Post
- 5.6 Company analysis
  - 5.6.1 Sensis under growing pressure from the online sector
- 5.7 Company history
6. Optus – overview and operating statistics
- 6.1 Introduction
- 6.2 Network overview
- 6.3 Analysis
  - 6.3.1 National Broadband Network
- 6.4 Financial highlights – 2009
- 6.5 Consumer and Multimedia Division
  - 6.5.1 Key operating statistics – 2009
  - 6.5.2 Voice over Internet Protocol (VoIP) service for SMBs
  - 6.5.3 Uecomm
- 6.6 Internet and broadband services
- 6.7 Pay TV services
- 6.8 Mobile services division
  - 6.8.1 Network overview
  - 6.8.2 Services overview
  - 6.8.3 Mobile subscriber statistics
- 6.9 Business and wholesale
  - 6.9.1 Alphawest
  - 6.9.2 IP-VPN market developments
7. Optus - financial statistics and analysis
- 7.1 Market analysis – 2009
- 7.2 Financial results
  - 7.2.1 Financial summary tables to March 2009
  - 7.2.2 Financial highlights for half year ending September 2009
  - 7.2.3 Financial highlights for the full year ending March 2009
  - 7.2.4 Financial analysis for 2008
  - 7.2.5 Financial highlights for the full year ending March 2008
8. Optus - The Network
- 8.1 Infrastructure overview
- 8.2 Consumer customer access network, the HFC network
- 8.3 Fixed networks
- 8.4 Core network
- 8.5 Mobile network
  - 8.5.1 2G network overview
  - 8.5.2 Optus/Vodafone 3G network sharing agreement
  - 8.5.3 HSPA network upgrade
- 8.6 Fibre access network
- 8.7 Wireless networks
  - 8.7.1 WiFi
  - 8.7.2 Radio
- 8.8 Business and IT and transformation program
  - 8.8.1 Overview
  - 8.8.2 Suppliers
  - 8.8.3 Project cost
  - 8.8.4 Benefits from transformation
  - 8.8.5 IP-VPN market developments
- 8.9 ADSL, ADSL2+ DSLAM network
  - 8.9.1 ULL agreement with Telstra
  - 8.9.2 DSLAM network
- 8.10 VoIP network
- 8.11 Satellite networks
  - 8.11.1 Overview
  - 8.11.2 The satellites
  - 8.11.3 The Optus satellites
  - 8.11.4 The Earth stations
  - 8.11.5 Satellite history to 2009
  - 8.11.6 Optus MobileSat
  - 8.11.7 Wireless broadband communities
  - 8.11.8 Pay TV services
9. Glossary of Abbreviations

Table 1 – Total telecoms service revenue by major provider – 2000 - 2011
Table 2 – Total telecoms service annual change by major provider – 2001 - 2011
Table 3 – Total telecoms service market share by major provider – 2000 - 2011
Table 4 – Second tier telcos – revenue by selected service provider – 2003 - 2010
Table 5 – Second tier telcos – revenue by major provider – annual change – 2003 - 2010
Table 6 – Second tier telcos – revenue by major provider – relative market shares – 2003 - 2010
Table 7 – Telstra - fixed line and mobile voice minutes of use – 2004 - 2009
Table 8 – Telstra – Fixed-line, mobile and broadband services in operation – 2004 - 2009
Table 9 – Telstra – 2G, 3G and wireless broadband services in operation – 2004 - 2009
Table 10 – Statistical overview (calls/subscribers/networks) – 2004 - 2009
Table 11 – Statistical overview (calls/subscribers/networks), annual change – 2005 - 2009
Table 12 – Telstra Group total revenue – 1994 - 2010
Table 13 – Telstra Group revenue by segment – 2006 - 2009
Table 14 – Telstra Group sales revenue, EBITDA, EBIT and net profit – 2002 - 2009
Table 15 – Telstra Group revenue, EBITDA, EBIT and net profit by annual change – 2003 - 2009
Table 16 – Telstra Group revenue by segment – 2008 - 2009
Table 17 – Telstra Group EBIT by segment – 2008 - 2009
Table 18 – Telstra Group revenue by service – 2008 - 2009
Table 19 – Telstra PSTN products revenue – 2008 - 2009
Table 20 – Telstra mobile revenue – 2008 - 2009
Table 21 – Telstra mobile prepaid and postpaid revenue – 2008 - 2009
Table 22 – Telstra Internet revenue – 2008 - 2009
Table 23 – Telstra IP and data access revenue – 2008 - 2009
Table 24 – Telstra offshore controlled entities revenue – 2008 - 2009
Table 25 – CSL New World revenue, expenses, EBITDA, EBIT, CAPEX – 2008 - 2009
Table 26 – TelstraClear revenue, expenses, EBITDA, EBIT, CAPEX – 2008 - 2009
Table 27 – Telstra Group capital expenditure – 2008 - 2009
Table 28 – Telstra Group revenue by segment – 2007 - 2008
Table 29 – Telstra Group EBIT by segment – 2007 - 2008
Table 30 – Telstra Group revenue by service – 2007 - 2008
Table 31 – Telstra fixed telephony revenue – 2007 - 2008
Table 32 – Telstra PSTN products revenue – 2007 - 2008
Table 33 – Telstra ISDN revenue – 2007 - 2008
Table 34 – Telstra mobile revenue – 2007 - 2008
Table 35 – Telstra mobile prepaid and postpaid revenue – 2007 - 2008
Table 36 – Telstra mobile retail and wholesale revenue – 2007 - 2008
Table 37 – Telstra Internet revenue – 2007 - 2008
Table 38 – Telstra IP and data access revenue – 2007 - 2008
Table 39 – Telstra business services and applications revenue – 2007 - 2008
Table 40 – Telstra offshore controlled entities revenue – 2007 - 2008
Table 41 – TelstraClear revenue, expenses, EBITDA, EBIT, CAPEX – 2007 - 2008
Table 42 – Telstra operating capital expenditure by technology – 2007 - 2008
Table 43 – Sensis revenue and annual change – 1998; 2000 - 2010
Table 44 – Sensis financial overview – 2006 - 2009
Table 45 – Sensis revenue by operating division – 2006 - 2009
Table 46 – Optus Consumer telephony statistics – 2007 - 2009
Table 47 – Optus on-net ARPU – 2007 - 2009
Table 48 – Optus consumer Internet statistics – 2007 - 2009
Table 49 – Total Internet subscribers (broadband and dialup) – 1996; 1998; 2000 - 2009
Table 50 – Optus pay TV subscribers – 1995 - 2009
Table 51 – Optus mobile subscribers, market share and prepaid ratio – 1998 - 2009
Table 52 – Optus mobile key operating statistics – 2007 - 2009
Table 53 – Optus business and wholesale statistics – 2007 - 2009
Table 54 – Optus overall operating revenue summary – 1994; 1996; 1998; 2000 - 2010
Table 55 – Operating revenue by operating division – 2006 - 2009
Table 56 – Operational EBITDA by operating division – 2005 - 2009
Table 57 – Operating revenue by operating division – 2008 - 2009
Table 58 – Optus revenue by major and minor service category – 2008 - 2009
Table 59 – Capital expenditure by operating division – 2008 - 2009
Table 60 – Optus revenue by major service division – 2007 - 2008
Table 61 – Optus revenue by major and minor service category – 2007 - 2008
Table 62 – Operating revenue by operating division – 2007 - 2008
Table 63 – Operational EBITDA by operating division – 2007 - 2008
Table 64 – Mobile revenue by division – 2007 - 2008
Table 65 – Business and Wholesale fixed revenue by service – 2007 - 2008
Table 66 – Consumer and SMB fixed revenue by service – 2007 - 2008

Exhibit 1 – Telstra Corporation Ltd at a glance
Exhibit 2 – Telstra’s NGN planned implementation time-line
Exhibit 3 – Telstra-controlled entities (Australia) – 2009
Exhibit 4 – Telstra-controlled entities (offshore) through Telstra Holdings – 2009
Exhibit 5 – Sensis Pty Ltd at a glance
Exhibit 6 – Key products and services
Exhibit 7 – Chinese website investments
Exhibit 8 – Optus Television services at a glance
Exhibit 9 – The SingTel Optus network
Exhibit 10 – HFC network status

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