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, businesses and governments. Internet service providers (ISPs) have historically been among the fastest growing operators in the technology sector. However, market saturation for fixed broadband has caused revenue growth to slow over the past five years. Growth is beginning to pick up pace again as technologies are upgraded. Revenue is forecast to grow by an annualised 6.6% in the five years through 2014-15, to reach $4.9 billion.
The industry is forecast to continue its recovery in 2014-15, with expected revenue growth of 7.4%... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Australian ISP industry is characterised as having a high level of concentration. In 2014-15, the top four players are forecast to account for approximately 82.5% of industry revenue. The high fixed-cost nature of the industry has encouraged a spate of merger and acquisition (M&A) activity, as companies strive to attain economies of scale that will enable them to compete with Telstra. TPG Telecom and iiNet have sustained the largest growth in industry market share as a result of M&A activity. Further consolidation among the large industry players is expected in the next five years, which will push the industry's concentration higher.
However, the Australian Government's NBN plan is designed to increase competition within the entire Australian communications sector... purchase to read more