Industry Analysis & Industry Trends
Companies in the Internet Service Providers industry offer retail internet services, and include firms that own or lease the telecommunications infrastructure. Revenue is derived from the provision of internet services to consumers, business and government. Internet service providers (ISPs) have historically been one of the fastest growing industries in the technology sector. However, market saturation for fixed broadband has led revenue to flatten over the past five years. Revenue is beginning to pick up pace again as technologies get upgraded. Revenue is forecast to grow by an annualised 1.8% in the five years through 2013-14 to reach $5.8 billion.
The industry is forecast to continue its recovery in 2013-14, with 3.7% growth over the year... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Australian ISP industry is characterised as having a high level of concentration. In 2013-14, the top four players are forecast to account for over 75.0% of industry revenue. The ISP industry is extremely capital intensive, and as such, there has historically been little threat of any company creating a network to rival Telstra's copper PSTN network. Telstra has been able to leverage its dominance in the wired telecommunications market by bundling services.
The high fixed-cost nature of the industry has encouraged a spate of merger and acquisition (M&A) activity within the smaller ISPs, as they strive to attain economies of scale that will enable them to compete with Telstra... purchase to read more