Industry Analysis & Industry Trends
Since 2007-08, the Telecommunications Resellers industry has been in a phase of dramatic decline. Intense and increasing competition has placed considerable pressure on pricing, eroding margins, particularly in the mobile industry. The increased competition, combined with unfavourable pricing regulations, has led several key industry players to exit the resale industry, preferring to transfer their subscriber bases onto their own networks instead. Optus, Virgin Mobile, B Digital and AAPT have all removed themselves from the reselling industry, either in part or entirely. The exits have been the result of network builds, mergers and acquisitions, and have caused many resale customers to transfer onto direct network services... purchase to read more
Industry Report - Starting a New Business Chapter
The Telecommunications Resellers industry has the lowest barriers to entry within the Australian telecommunications sector. Relative to telecommunication carriers, capital intensity is considerably less as telecommunication resellers by definition utilise infrastructure belonging to third parties (i.e. the carriers). However, switched telecommunication resellers are still required to invest in various switching mechanisms, though it is possible to be a switchless reseller and hence avoid this cost. The move to IP based networks has reduced switching costs for both carriers and resellers.
Prior to 1997 the biggest barrier to entry concerned interconnection charges and access rights to the networks of the incumbents, Telstra in particular... purchase to read more