Industry Analysis & Industry Trends
The industry is comprised of companies that own the wireless infrastructure that enables voice and data services, and radio and television relays. The industry has exhibited strong growth on the back of the popularity of smartphones. Industry revenue is forecast to grow by an annualised 3.0% in the five years through 2014-15. Mobile phones have become the primary means of telephone communications and a life necessity. The high number of subscribers can be attributed to a significant rise in mobile service popularity over the past five years. Consumers have rapidly adopted wireless broadband services via smartphones, tablets and 3G dongles. The strong desire for remote internet connectivity has not been tempered by the relative high usage prices of mobile versus fixed broadband services... purchase to read more
Industry Report - Industry Investment Chapter
The industry exhibits high levels of capital intensity. Using wages as a proxy for labour and depreciation as a proxy for capital, an estimated $2.00 is spent on capital for every dollar spent on labour. Mobile telecommunications carriers have been heavily investing in either expanding the capacity of their existing wireless networks or rolling out new networks. Maintaining and upgrading network infrastructure in line with technological advancements remains highly capital-intensive. Mobile telecommunications carriers have constantly invested in expanding their mobile network capacity to meet future demand.
Capital investment includes network infrastructure, land and spectrum. Spectrum licences are required for each state and are held for a finite period... purchase to read more