Australia - Telecoms Market Analysis - The Telecoms Market Moving into 2010

Synopsis

During 2010 dramatic changes may occur within the Australian telecoms market. The National Broadband Network Company will start to take shape in order to build a nationwide high-speed network based on fibre-optic and wireless technologies. A critical issue for the Australian telecommunications industry in 2010 is whether Telstra will be structurally separated into several separate firms in order to promote competition. There is a strong probability growth in the Australian economy may be fairly slow in 2010 and a smaller probability that growth may even be flat. Investments in the industry are still seriously down. This is likely to translate into stagnant or low growth in telecommunications. However as consumers and businesses scrutinise discretionary spending some telephony and Internet products may become more popular. The mobile industry in Australia may change significantly in 2010 following the merger of the third and fourth largest mobile network operators Vodafone and Hutchison Australia to form the company VHA. The merger has fundamentally altered the competitive landscape for the mobile industry. If VHA is successful in the longer term the company may challenge both Optus and Telstra in an effort to become the largest service provider in Australia, as Vodafone already is in New Zealand and many other important markets.