Australia - Telco Company Profiles

Publication Overview

This report provides overviews, analyses and statistics on Australian telcos including : Telstra, Optus, Vodafone Australia, TPG, iiNet, Vocus and Macquarie Telecom including key operating and financial data.

Researcher:- Phil Harpur
Current publication date:- November 2018 (24th Edition)

Executive Summary

Australia’s mobile network market is set for a major shakeup

This report provides a comprehensive overview of the major fixed broadband service providers in Australia: Telstra, Optus, Vocus, TPG, Macquarie Telecom and Vodafone Australia.

Telstra is Australia’s largest telecommunications provider offering a full range of telecom services throughout Australia. Telstra’s mobile network is well-positioned to offer superior services to those offered by the NBN company. Furthermore, through its national Wi-Fi and fibre backbone networks it can rapidly offload any heavy broadband traffic from its mobile network onto its fibre backbone.

Optus is Australia’s second-largest telecommunications carrier and second-largest mobile operator.  The market position of Optus has not changed all that much over the years. It has been the number two telco in the Australian market since its inception over twenty years ago.

In Australia TPG has the largest data network and voice network after Telstra, the largest fully converged voice, video and data IP-based access network in regional Australia, and the largest voice-enabled IP network. TPG is set to become the fourth Mobile Network Operator in Australia.

Vocus is a telecommunications provider offering a range of ICT solutions for ISPs, Telcos and enterprises across Australia and New Zealand including broadband, fibre, data centre services, and Unified Communications. Vocus merged with M2 Communications and acquired Amcom. While the TPG/iiNet merger brought two similar companies together, and as such potentially reduced the number of players in the market, the Vocus/M2 merger brought two different companies together – one operating in the business market and one operating in the retail market.

The Australian mobile market is dominated by the three major mobile network operators Telstra, Optus, and Vodafone (VHA). These have been able to offer LTE services on a wholesale basis thus encouraging growth in the LTE sector.

There is also a significant number of Mobile Virtual Network Operators (MVNO) in Australia:

  • These companies purchase wholesale mobile services from the MNOs, provide services under their own brand and typically provide their own billing and customer care.
  • Key MNVOs in Australia include Amaysim, Kogan Mobile, Aldi Mobile, Ovo Mobile, Boost Mobile, Lebara Mobile and Virgin Mobile.

MNVO Amaysim recently launched NBN products. It has an ambitious goal to generate customer ARPUs of as much as $200 per month via a bundle of NBN. Amaysim is looking to link up with fibre providers across Australia to expand its reach which could also then be used to expand its offerings into new segments and beyond the NBN.

Mobile broadband usage continues to grow strongly, a trend which will continue in the wake of the marketing of a wide range of affordable and more capable devices, and of LTE population coverage which by 2018 had reached about 98%.

4.5G and 5G are the new frontiers linked to wearable device communications and other IoT and M2M activities. Telstra clearly has both the IoT and the M2M market in its sights – the many interconnectivity aspects involved in smart energy are especially high on the company’s list.

This report evaluates the strategies and performances of the mobile network operators, including financial and operational data. It also reviews the main MVNOs and presents an industry overview as well as data and analysis on the trends and key developments in these maturing markets.

Key Developments

  • Vodafone began expanding its NBN fixed line service from Sydney and other major cities.
  • Telstra released its ‘four pillar’ strategy.
  • TPG is set to enter the mobile network operator sector.
  • Amaysim recently announced the launch of its NBN products.
  • 4.5G and 5G are the new frontiers linked to wearable device communications and other IoT and M2M activities.
  • Telstra has both the IoT and M2M markets in its sights.

Key companies mentioned in this report:

Telstra, TPG Telecom, iiNet, AAPT, Pipe Networks, Soul, Comindico, Vocus, M2, Nextgen Network, Amcom, Optus, Alphawest, Virgin Mobile, Vodafone, Macquarie Telecom, PowerTel, MeU Mobile; Amaysim, Woolworths, Crazy Johns, JB HiFi, Hutchison Australia, 3, NBN, Aldi Mobile; Boost Mobile, Lebara, Kogan Mobile, Red Bull Mobile, Macquarie Telecom, Pivotel.

Table of Contents

  • 1. Mobile network operators and MVNOs
    • 1.1 Mobile operator ecosystem structure
    • 1.2 Market analyses
      • 1.2.1 The rise of mobile data services
    • 1.3 Mobile Network Operators (MNOs)
      • 1.3.1 Telstra
      • 1.3.2 Optus
      • 1.3.3 Vodafone Hutchison Australia (VHA)
    • 1.4 Mobile Virtual Network Operators (MVNOs)
      • 1.4.1 Market definition
      • 1.4.2 Market overview
      • 1.4.3 Market statistics
      • 1.4.4 Historical overview
      • 1.4.5 Amaysim
      • 1.4.6 Kogan Mobile
      • 1.4.7 Aldi Mobile
      • 1.4.8 Ovo Mobile
      • 1.4.9 Lebara Mobile
      • 1.4.10 Boost Mobile
      • 1.4.11 TravelSIM
      • 1.4.12 Virgin Mobile
      • 1.4.13 Woolworths Mobile
      • 1.4.14 MeU Mobile
    • 1.5 Closed MVNOs
      • 1.5.1 Red Bull Mobile
    • 1.6 Mobile resellers
      • 1.6.1 Background information
      • 1.6.2 Resellers on the Telstra network
      • 1.6.3 Resellers on the Optus network
      • 1.6.4 Resellers on the Vodafone network
  • 2. Fixed broadband service providers
    • 2.1 Telstra
      • 2.1.1 Company overview
      • 2.1.2 Financial and operating statistics
      • 2.1.3 Strategy update – 2018
      • 2.1.4 Company analysis - 2017
      • 2.1.5 Strategy update - 2016
      • 2.1.6 Network upgrade
    • 2.2 Optus
      • 2.2.1 Company overview
      • 2.2.2 Company analysis
      • 2.2.3 Financial and operating statistics
      • 2.2.4 Infrastructure overview
      • 2.2.5 Products and services
      • 2.2.6 Major subsidiaries
    • 2.3 TPG Telecom Limited
      • 2.3.1 Company overview
      • 2.3.2 Company analysis
      • 2.3.3 Company acquisitions
      • 2.3.4 Company investments
      • 2.3.5 TPG to become the fourth mobile operator in Singapore
      • 2.3.6 Fibre Network
      • 2.3.7 National network
      • 2.3.8 Financial statistics
      • 2.3.9 Operational statistics
    • 2.4 Vocus
      • 2.4.1 Overview
      • 2.4.2 Company strategy update – late 2017
      • 2.4.3 Company analysis
      • 2.4.4 Financial results
      • 2.4.5 Operations results
      • 2.4.6 Acquisitions / Mergers
      • 2.4.7 Network
      • 2.4.8 Products and services
    • 2.5 Macquarie Telecom
      • 2.5.1 Company overview
      • 2.5.2 Financial results
    • 2.6 Vodafone
      • 2.6.1 Fixed line NBN offering
  • 3. Video-On-Demand (VOD) providers
    • 3.1 Major VOD providers
      • 3.1.1 Netflix
      • 3.1.2 Stan
      • 3.1.3 Foxtel
      • 3.1.4 Telstra TV
      • 3.1.5 Vodafone
      • 3.1.6 FetchTV
      • 3.1.7 Hayu
      • 3.1.8 Hulu
      • Table 1 – Telstra Group - Top Line Annual Financial Results - 2005 - 2018
      • Table 2 – Telstra Group - Revenue ($billion) by Product Segment and Annual Change – 2017 - 2018
      • Table 3 – Telstra mobile prepaid and postpaid revenue – 2008 – 2018
      • Table 4 – Telstra mobile services revenue – 2009 - 2018
      • Table 5 – Telstra mobile ARPU - prepaid, postpaid, mobile broadband – 2004 – 2018
      • Table 6 – Telstra - Mobile Subscribers (millions) by prepaid, postpaid, wholesale – 2008 - 2018
      • Table 7 – Optus Group – Financial Results by Consumer Segment – 2014 - 2018
      • Table 8 – Optus mobile revenue – 2009 – 2018
      • Table 9 – Optus - mobile subscribers and annual change – 2005 - 2018
      • Table 10 – Optus -mobile pre/postpaid and mobile broadband customers (thousands) – 2008 - 2018
      • Table 11 – Optus mobile subscriber - Monthly ARPU – 2009 - 2018
      • Table 12 – Historic - Optus mobile subscribers, annual change – 1998 - 2004
      • Table 13 – Vodafone Australia revenue – 2009 - 2018
      • Table 14 – VHA Monthly ARPU – 2015 - 2018
      • Table 15 – Historic - HTA key metrics - 2009 - 2015
      • Table 16 – Historic - Monthly ARPU and by segment – 2009 - 2012
      • Table 17 – Historic - Vodafone Australia revenue – 1996; 1998 - 2008
      • Table 18 – Vodafone Australia (Group) – subscribers (millions) by type – 2009 – 2018
      • Table 19 – Historic - VHA MVNO customers – 2014 – 2016
      • Table 20 – Retail Mobile subscribers share by MNO and MVNO – 2016 – 2017
      • Table 21 – Historic - Retail Mobile subscribers share by MNO and MVNO – 2013 – 2015
      • Table 22 – Retail mobile subscriber market share by MNO and MVNO - 2015 - 2016
      • Table 23 – Amaysim Mobile subscribers and subscriber churn – 2015 - 2017
      • Table 24 – Telstra Group - Top Line Annual Financial Results - 2005 - 2017
      • Table 25 – Telstra Group - Revenue ($billion) by Product Segment and Annual Change – 2015 - 2017
      • Table 26 – Telstra Group - Revenue ($billion) by Operations Segment and Annual Change – 2015 - 2017
      • Table 27 - Telstra Group – Mobile Handset ARPU by prepaid, postpaid– 2016 - 2017
      • Table 28 – Telstra Group - Capital Expenditure - 2009 - 2017
      • Table 29 – Telstra - Mobile Subscribers (millions) by prepaid, postpaid – 2008 - 2017
      • Table 30 – Telstra broadband subscribers by sector – 2007 – 2016
      • Table 31 – Overview of Optus overall operating revenue summary – 2000 - 2018
      • Table 32 – Optus revenue – 2012 - 2018
      • Table 33 – Optus Group – Financial Results - Division – 2014 - 2018
      • Table 34 – Optus – Key Operating Statistics - 2015 - 2018
      • Table 35 – Historic - Optus consumer and business fixed telephony statistics – 2009 - 2017
      • Table 36 – Historic – Total internet subscribers (broadband and dialup) – 1996; 1998; 2000 - 2008
      • Table 37 – iiNet’s acquisitions – 2003 - 2014
      • Table 38 – TPG Revenue, EBITDA and NPAT– 2001 - 2017
      • Table 39 – TPG – revenue ($ million) breakdown by division – 2009 – 2017
      • Table 40 – TPG – consumer segment revenue ($ million) – 2016 - 2017
      • Table 41 – TPG – corporate segment revenue ($ million) – 2016 - 2017
      • Table 42 – TPG – Broadband ARPU ($/month) – 2016 - 2017
      • Table 43 – iiNet – Broadband ARPU ($/month) – 2016 - 2017
      • Table 44 – TPG consumer – revenue breakdown by market segment (consumer) – 2010 - 2016
      • Table 45 – TPG – Revenue by Division – 2016
      • Table 46 – Historic - TPG – broadband ARPU – 2009 - 2016
      • Table 47 – TPG – Group Broadband Subscribers (thousands) by Division– 2014 - 2017
      • Table 48 – TPG – Consumer Broadband Subscribers (thousands) by Product – 2014 - 2017
      • Table 49 – iiNet – Broadband Subscribers (thousands) by Product – 2015 - 2017
      • Table 50 – TPG – Group Mobile Subscribers (thousands) by Division– 2014 - 2017
      • Table 51 – iiNet Fixed Voice – subscribers and ARPU – 2015 - 2017
      • Table 52 – Historic - TPG Group – Total Subscribers, Mobile Subscribers – Jan 2016
      • Table 53 – Historic - TPG (only) – broadband subscribers on/off-net and bundled – 2008 - 2016
      • Table 54 – Historic - TPG on-net versus Soul off-net home phone subscribers, annual change – 2009 - 2015
      • Table 55 – Historic - TPG versus Soul mobile subscribers – 2008 - 2015
      • Table 56 – Vocus - Key financial parameters – 2012- 2017
      • Table 57 – Vocus – Revenue Split by Division – 2016 - 2017
      • Table 58 – Vocus – Revenue Split by Product – 2016 - 2017
      • Table 59 – Vocus Australia - Consumer Broadband Subscribers – 2016 - 2017
      • Table 60 – M2’s acquisitions – 2005 - 2015
      • Table 61 – Macquarie key financial indicators – 2008 - 2017
      • Table 62 –Macquarie revenue by division- revenue $ (million)– 2015 - 2017
      • Table 63 – Total number of Fetch TV subscribers 2012 - 2016
      • Chart 1 – Optus - mobile subscribers and annual change – 2001 - 2018
      • Chart 2 – Overall Optus overall operating revenue and annual change – 2000 - 2018
      • Exhibit 1 – MVNO models
      • Exhibit 2 – Australian MVNOs Mobile carriers - 2018
      • Exhibit 3 – Mobile carriers and selected resellers and MVNEs
      • Exhibit 4 – TPG – Competitive Analysis Profile – Highlights
      • Exhibit 5 – TPG – Competitive Analysis Profile

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Licence Information

Annual Publication Profile

Technologies

Companies (Major Players)

Number of pages 96

Status Current

Last updated 7 Nov 2018
Update History

Lead Analyst: Phil Harpur

Contributing Analyst:

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