Down to the wire: Profit margins are expected to decline due to ongoing price competition

The Telecommunications Services subdivision has changed the way Australians interact by providing increased connectivity. Telecommunications services usage has increased over the past five years, but intense intra-industry and intra-subdivision competition has created a difficult trading environment for many firms. Mobile demand growth has been achieved at the expense of fixed-line services. Revenue derived from wireless services has increased, driven by the rising volume of mobile data consumption, and enhanced mobile connectivity. As a result of the fixed-to-mobile shift, subdivision revenue is expected to rise at an annualised 0.1% over the five years through 2017-18, to reach $43.3 more.

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

Industry Threats & Opportunities

  • Mobile providers have competed on a price basis by offering additional value on capped plans
  • Higher volumes and greater economies of scale have limited profit margin declines
  • The migration from wired to wireless telecommunications is expected to continue
  • Industry Report - Industry Products Chapter

    Most subdivision revenue is derived from mobile services and wired services sold directly to consumers and businesses by the companies that own and operate the networks. A smaller proportion of revenue is derived from resellers and other sources.Mobile servicesMobile carriers have increased their market share over wired carriers, becoming the dominant industry within the Telecommunications Services subdivision. Mobile services have continued to strengthen over the past five years, and have grown as a proportion of subdivision revenue over the period. Non-messaging data has been the stand-out segment in the Wireless Telecommunications Carriers industry over the past five years, and is projected to continue driving revenue from mobile services. Thi...purchase to read more.

    Additional Insights for the Telecommunications Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Telecommunications Services Industry are

  • Having an extensive distribution/collection network
  • Ability to raise revenue from additional sources
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Mobile telecommunications density and Number of households in the Telecommunications Services industry impact industry performance..

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    What's in this report

    What is the Telecommunications Services Industry?

    Telecommunications companies mainly operate, maintain or provide access to facilities for the transmission of voice, data, text, sound and video over wire, cable, wireless and satellite networks. Not all subdivision participants own and operate telecommunications infrastructure. Telecommunications resellers purchase network capacity and then retail services to businesses and consumers. Internet service providers are not included in this subdivision.

    Industry Products
  • Mobile services
  • Wired services
  • Resold telecommunications
  • Satellite, TV and other services
  • Industry Activities
  • Wired telecommunication service provision
  • Wireless telecommunications service provision
  • Satellite communication service provision (except mobile telephones)
  • Television and radio relay station operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Mobile telecommunications density
  • Number of households
  • Real household disposable income
  • Demand from telecommunications and other electrical goods wholesaling
  • Number of businesses

  • Current Performance
  • Wireless shift
  • Rising competition
  • Connectivity
  • Subdivision structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Participation and profit
  • Demand trends
  • Broadband network
  • Table: Telecommunications Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Telecommunications Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Education and Training
  • Consumer Goods Retailing
  • Finance
  • Professional Services
  • Health Services
  • Internet Service Providers
  • Consumers

  • Key Selling Industries
  • Telecommunications Services

  • Products & Services
  • Mobile services
  • Wired services
  • Resold telecommunications
  • Satellite, TV and other services
  • Chart: Telecommunications Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Commercial clients
  • Government
  • Chart: Major Market Segmentation for the Telecommunications Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Access charges
  • Depreciation
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Telecommunications Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Telecommunications Services Industry

  • Industry Globalization
    Telstra Corporation Limited, SingTel Optus Pty Limited, Vodafone Hutchison Australia Pty Limited,
  • Table: Telstra Corporation Limited - financial performance
  • Table: SingTel Optus Pty Limited - financial performance
  • Table: Vodafone Hutchison Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Telecommunications Services 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 Telecommunications Services 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
  • A term used to denote any always-on, high data rate internet connection, in excess of 265 kilobytes per second.
  • Fibre-To-The-Premises (Fttp)
  • An internet connection where fibre reaches the boundary of the user's residence or business, and is characterised by its superior speed, relative to fibre-to-the-node and coaxial networks.
  • Isp
  • Internet Service Providers supply internet access via fixed lines, using dial-up and fixed broadband connections. ISPs may also offer a variety of internet-based support services.
  • Pstn
  • Stands for public switched telecommunications network. The PSTN is provided with a digital core network, or an Integrated Services Digital Network.
  • Spectrum Licence
  • A licence that authorises the holder to use a parcel of spectrum space, which is a particular frequency band within a specific geographic area.
  • Telco
  • Abbreviated form of telecommunications company.
  • Voice Over Internet Protocol (Voip)
  • Delivery of voice communications over the internet, rather than the PSTN.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Telecommunications Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Telecommunications Services:
    • 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 Telecommunications Services 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 Telecommunications Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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