Industry Analysis & Industry Trends
The Fibre Optic Cable Installation industry has grown strongly over the past five years, underpinned by the Federal Government's investment in the National Broadband Network (NBN). The objective of the NBN is to provide all Australian households, businesses and government agencies with an advanced communications platform to access internet-based entertainment and data.
NBN Co was established to build the national telecommunications network, and to sell space on this network to retail communications companies. Tier-1 contractors are assigned the responsibility of rolling out the network in specific states/regions. These firms often subcontract work to smaller specialist installers... purchase to read more
Industry Report - Industry Investment Chapter
The industry provides installation services that are labour dependent. As a consequence of the labour intensity of the industry's services, expenses related to labour far outweigh the investment in capital. In addition, industry operators use a mix of hired and proprietary plant and equipment, with the ability to hire equipment further reducing capital requirements.
The industry allocates an estimated $22.33 on labour costs for every dollar spent on capital input in 2015-16. Over the next five years the ratio of labour costs to depreciation is expected to increase marginally as the industry sheds non-permanent subcontracted labour when demand conditions wane. The industry incurs substantial subcontractor costs in addition to direct employment costs... purchase to read more