Networking: Firms have capitalised on industry growth through mergers and acquisitions

The Internet Service Providers industry retails internet services, and includes firms that own or lease telecommunications infrastructure. Industry revenue is derived from providing internet services to consumers, businesses and government entities. Internet service providers (ISPs) have historically been among the fastest growing operators in the technology sector. Increasing reliance on the internet for business and leisure; growing data usage from consumers and businesses; and the rise in domestic web accessibility, spurred on by the ongoing rollout of the National Broadband Network (NBN) have been driving industry expansion. Industry revenue is expected to rise at an annualised 5.3% over the five years through 2017-18, to reach $5.4 billion. This includes revenue growth of more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The ongoing rollout of the National Broadband Network has been driving industry expansion
  • ISPs have engaged in a fierce price war to build scale and increase market shares
  • Higher speed broadband connectivity will increase acceptance of VoIP in the business market
  • Industry Report - Industry Analysis Chapter

    The Internet Service Providers industry has undergone significant changes over the past five years. The industry has strongly grown due to consumers upgrading to broadband connections with higher data allowances and faster download speeds, enhancing the average revenue per user (ARPU). However, advances in wireless broadband networks have constrained fixed-line internet subscriber growth, as mobile data packages have become more affordable. Industry revenue is expected to grow at an annualised 5.3% over the five years through 2017-18, to reach $5.4 billion. Industry revenue is anticipated to increase by 3.3% in the current year, due to enhanced price competition limiting the industry’s income growth potential...purchase to read more.

    Additional Insights for the Internet Service Providers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Internet Service Providers Industry are

  • Access to required utility infrastructure
  • Economies of scale
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Households with internet access and Number of businesses in the Internet Service Providers industry impact industry performance..

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    What's in this report

    What is the Internet Service Providers Industry?

    Industry players provide internet access via fixed lines to businesses, households and governments. Internet services are provided via dial-up, integrated services digital network and fixed broadband connections. The industry also provides internet-reliant telecommunications services such as voice over internet protocol (VoIP). The industry excludes mobile-internet provision.

    Industry Products
  • Digital subscriber line (DSL)
  • Cable
  • Fibre
  • Other products
  • Industry Activities
  • Internet service provision
  • Internet hosting
  • Dial-up internet provision
  • Broadband internet provision
  • Voice over internet protocol provision
  • Merchandise retailing
  • Internet backbone servicing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Households with internet access
  • Number of businesses
  • Mobile telecommunications density
  • Real household disposable income

  • Current Performance
  • Household reliance
  • Business adoption
  • Mobile competition
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Growing internet usage
  • National Broadband Network
  • Industry structure and profitability
  • Table: Internet Service Providers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Internet Service Providers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wholesale Trade
  • Education and Training
  • Consumer Goods Retailing
  • Health Services
  • Consumers

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Computer and Electronic Office Equipment Manufacturing
  • Wired Telecommunications Network Operation
  • Wireless Telecommunications Carriers

  • Products & Services
  • Digital subscriber line (DSL)
  • Fibre
  • Cable
  • Other products
  • Chart: Internet Service Providers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Household subscribers aged 35-54
  • Businesses and government
  • Household subscribers aged 15-34
  • Household subscribers aged 55+
  • Chart: Major Market Segmentation for the Internet Service Providers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Internet Service Providers

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Internet Service Providers Industry

  • Industry Globalization
    Telstra Corporation Limited, TPG Telecom Limited, Vocus Group Limited, SingTel Optus Pty Limited,
  • Table: Telstra Corporation Limited - financial performance
  • Table: TPG Telecom Limited - financial performance
  • Table: Vocus Group Limited - financial performance
  • Table: SingTel Optus Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Internet Service Providers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Internet Service Providers Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Asymmetric Digital Subscriber Line (Adsl)
  • A line with different downstream and upstream data speeds.
  • Megabits Per Second (Mbps)
  • A measure of data transfer speed. A megabit is equal to one million bits.
  • Public Switched Telephone Network (Pstn)
  • Telecommunication infrastructure made up of telephone lines, fibre-optic cables and satellites, which are linked by switching centres.
  • Software-As-A-Service
  • The sale of software on a subscription basis with related customer support, rather than the sale of standalone products.
  • Voice Over Internet Protocol (Voip)
  • A process of communicating through speech via the internet rather than through a telephone call.
  • What Our Customers Say

    Why buy this report?

    The Internet Service Providers market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Internet Service Providers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Internet Service Providers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Internet Service Providers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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