Crossed lines: Substitution trends favouring wireless networks have caused long-term declines

The need to communicate is an integral part of Australian households, businesses and government offices. However, the way in which people communicate is changing, mostly at the expense of the Wired Telecommunications Network Operation industry. Australians highly value constant connectivity. As a result, mobile phones have become the dominant form of communication, while Voice over Internet Protocol (VoIP) is an increasingly common choice for long-distance calls. VoIP includes services such as Skype, Whatsapp and Viber, in addition to specialised handsets provided by internet service providers such as iiNet.The rising adoption of broadband internet and mobile devices with internet capabilities has bolstered non-wired telecommunications usage...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 13-18
-4.4%
Forecast Growth 18-23
Profit
Employment
20,719
Businesses
902
Market Share of Companies

Industry Threats & Opportunities

  • Strong price-based competition among mobile providers has diminished the use of fixed lines
  • Profitability has fallen slightly, due to higher costs associated with NBN connection charges
  • Operators are expected to continue bundling unregulated services with fixed line plans
  • Industry Report - Industry SWOT Analysis Chapter

    The Wired Telecommunications Network Operation industry is in the decline phase of its life cycle as its importance in keeping consumers and businesses connected diminishes. Many of the industry's products, such as long-distance phone calls, are mature in nature and face increasing competition from external sources, such as mobile messaging platforms. Voice-based products have become less important relative to various data-based products including email, internet, fax, data and video.The industry's traditional components are under threat from trends favouring technological convergence (e.g. broadcasting and telephony) and substitution (fixed versus wireless). Tec...purchase to read more.

    Additional Insights for the Wired Telecommunications Network Operation Industry

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

  • Economies of scope
  • Development of a symbiotic relationship with another industry
  • Ready access to investment funding
  • IBISWorld analysts also discuss how external factors such as Mobile telecommunications density and Demand from telecommunications and other electrical goods wholesaling in the Wired Telecommunications Network Operation industry impact industry performance..

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    What's in this report

    What is the Wired Telecommunications Network Operation Industry?

    Industry operators provide voice and data services via landlines, microwaves or satellite link-ups. Services include fixed-wire telephony, wired network and cable services, including ISDN and ATM frame relay. Industry participants operate and maintain their own switching and transmission facilities, or may own a fixed line telephone network system consisting of wires or fibre-optic cable. Spare capacity is sold to other telecommunications carriers or resellers.

    Industry Products
  • Line access
  • Fixed-to-mobile calls
  • Local calls
  • Data services
  • Long-distance calls
  • Customer premises equipment
  • Inter-carrier access
  • Other services
  • Industry Activities
  • Data cable communication service provision
  • Payphone operation
  • Telegram service provision
  • Telephone exchange operation
  • Fixed-wire telephone service provision
  • Wired network communication service provision
  • Integrated services digital network provision
  • 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
  • Demand from telecommunications and other electrical goods wholesaling
  • Number of businesses
  • Number of households

  • Current Performance
  • Participation and profit
  • Mobile substitution
  • Line rentals
  • Pricing tactics
  • Chart: Revenue Growth

  • Industry Outlook
  • External competition
  • Convergence
  • National Broadband Network
  • Table: Wired Telecommunications Network Operation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wired Telecommunications Network Operation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electricity, Gas, Water and Waste Services
  • Accommodation and Food Services
  • Consumer Goods Retailing
  • Finance
  • Telecommunications Resellers
  • Consumers

  • Key Selling Industries
  • Construction
  • Electric Cable and Wire Manufacturing

  • Products & Services
  • Line access
  • Fixed-to-mobile calls
  • Data services
  • Long-distance calls
  • Local calls
  • Other services
  • Inter-carrier access
  • Customer premises equipment
  • Chart: Wired Telecommunications Network Operation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses
  • Government
  • Chart: Major Market Segmentation for the Wired Telecommunications Network Operation 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 Wired Telecommunications Network Operation

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wired Telecommunications Network Operation Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wired Telecommunications Network Operation 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 Wired Telecommunications Network Operation Industry
    Includes:
  • 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
    Convergence
  • A trend where fixed telephony, broadband internet and pay-TV become amalgamated, with network operators and relevant infrastructure providing multiple services.
  • Customer Churn Rate
  • The proportion of subscribers that leave a carrier during a given time period (e.g. quarterly or annually).
  • Naked Dsl
  • Broadband connection that does not come with a telephone service, which is replaced with VoIP. Requires ULL line rental access but not PSTN access, typically leading to lower prices.
  • Public Switched Telephone Network (Pstn)
  • Traditional analogue phone network that uses Telstra's copper cables.
  • Unconditioned Local Loop (Ull)
  • Occurs when a third party rents access to Telstra's copper network from an exchange to a customer's premises, with the third party having to provide all services on the line independent of Telstra.
  • 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 Wired Telecommunications Network Operation 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 Wired Telecommunications Network Operation:
    • 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 Wired Telecommunications Network Operation 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 Wired Telecommunications Network Operation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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