This report provides overviews, analyses and statistics on the tier one Australian telcos: Telstra, Optus and Vodafone Australia including key operating and financial data.
Researcher :- Phil Harpur
Australia's top three Telcos face growing competition
Telstra is Australia's largest telecommunications provider offering a full range of telecom services throughout Australia. The company provides basic access services to most homes and businesses, local and long-distance telephone call services, and mobile and internet services. Wholesale services are also provided to ISPs and RSPs while advertising and subscription television services are provided through subsidiary companies. Several strategic investments undertaken have strengthened Telstra's position in the e-health services market.
In total, over three years to June 2017 Telstra invested more than $5 billion into Telstra's mobile network. Telstra will start rapidly deploying the next generation of LTE technology including voice over LTE, LTE broadcast and the next stage of LTE advanced delivering peak network speeds of up to 600 Mb/s.
Telstra continues to expand into emerging technology areas such as e-Health. Telstra has recently completed 15 acquisitions and partnerships in electronic prescriptions, remote diagnostics, secure health record keeping and telematics.
Telstra's mobile network is well-positioned to offer superior services to those offered by the NBN company. Furthermore, through its national Wi-Fi and fibre backbone networks it can rapidly offload any heavy broadband traffic from its mobile network onto its fibre backbone.
Optus provides a range of communications services that include mobile, national and long-distance services, local and international telephony, business network services, internet and satellite services, subscription TV and digital media services.
The market position of Optus has not changed all that much over the years. It has been the number two telco in the Australian market since its inception some twenty years ago, with an overall market share hovering around the 20%-25%. Also unchanged is the fact that the majority of its market share is based on its mobile service.
While Optus has been strong in the mobile market it has never been able to challenge Telstra, and during the 'Vodafail' period Optus has not been able to use that opportunity to significantly increase its market share.
In September 2017 Optus achieved a world's first achievement in pairing pre-5G technologies Massive MIMO (Multiple Input Multiple Output) with 3CC Carrier Aggregation technologies, 3CC Massive MIMO.
Vodafone Hutchison Australia (VHA) was formed following the merger of Vodafone Australia with Hutchison Telecoms, each entity owning half of the new company. Hutchison and Vodafone now operate under the business name VHA, with products still marketed under the Vodafone brand.
Vodafone's infrastructure has seen a fundamental overhaul, largely due to the successful refarming of its 850MHz concessions which allowed it to convert 3G to LTE across the country.
Vodafone Australia has begun committing major resources to evaluating a potential fixed-line play over NBN. It is also targeting leadership in the next generation of mobile, announcing that it will start running 5G lab trials and demonstrations. Vodafone Australia is also looking to take leadership in the growing Internet of Things space, drawing on the expertise of the Vodafone Group globally.
Vodafone has begun a large half-decade network transformation project: virtualizing both its core and IP networks in its transition to a 5G environment. It is planning to launch fixed broadband service via the NBN in selected areas by 2018 and has been investing heavily to establish its own NBN infrastructure. BuddeComm surmises that if Vodafone did not enter the fixed-line business despite the obvious opportunities in place it may become a target for fixed-line players.
- Over three years to June 2017 Telstra invested more than $5 billion into Telstra's mobile network.
- Telstra's mobile network is well-positioned to offer superior services to those offered by the NBN company.
- Optus announced its intention to spend $1 billion to improve and expand its mobile network in regional Australia by the end of June 2018.
- Optus achieved a world's first achievement in pairing pre-5G technologies Massive MIMO
- Vodafone Australia has begun committing major resources to evaluating a potential fixed-line play over NBN.
Key companies mentioned in this report:
TelstraClear, Telstra Business, Telstra International, Country Wide, Sensis, FOXTEL, Quotify, Ooyala, Yelp, Optus, Alphawest, Virgin Mobile, VHA, Vodafone, 3, Hutchison (HTA).
Table of Contents
1. Market analysis
- 1.1 Revenue statistics and market forecast by major provider
- 2.1 Company information
- 2.1.1 Overview
- 2.1.2 Financial Results - 2017
- 2.1.3 Financial Results - Half Year to December 2016
- 2.1.4 Operating Statistics
- 2.2 Company Analysis - Telstra struggles for Growth
- 2.2.1 Strategy moving forward
- 2.2.2 Cloud Computing Strategy
- 2.2.3 Recent developments
- 2.3 Business units
- 2.3.1 Background information
- 2.3.2 Business units
- 2.3.3 Digital Media division
- 2.3.4 Applications & Ventures
- 2.3.5 Telstra Health
- 2.3.6 Telstra International
- 2.4 Networks
- 2.4.1 Overview
- 2.4.2 Mobile Network
- 2.4.3 Telstra's next-generation network
- 2.4.4 Telstra and the NBN
- 2.4.5 Telstra's ADSL network
- 2.4.6 Telstra's planned national WiFi network
- 2.5 Controlled and associated entities
- 2.5.1 Acquisitions and sales
- 3.1 Company information
- 3.2 Recent Developments
- 3.3 Company Analysis
- 3.4 Key operating statistics
- 3.5 Financial Results
- 3.6 Infrastructure overview
- 3.7 Optus deal with NBN Co
- 3.8 Products and services
- 3.8.1 Divisions overview
- 3.8.2 Consumer and multimedia
- 3.8.3 Business and wholesale
- 3.8.4 NBN
- 3.8.5 Internet and broadband services
- 3.8.6 Optus Evolve
- 3.8.7 WiFi
- 3.8.8 M2M and IoT
- 3.9 Mobile Network
- 3.9.1 VoLTE
- 3.9.2 5G Developments
- 3.10 Major subsidiaries
- 3.10.1 Alphawest
- 3.10.2 Uecomm
- 3.10.3 Virgin Mobile
- 3.10.4 Ensyst
- 3.11 Company history
- 4.1 Company information
- 4.2 Company analysis
- 4.2.1 Vodafone's remarkable turnaround
- 4.3 Financial highlights
- 4.4 Operating statistics
- 4.5 Mobile Network
- 4.5.1 3G and HSPA networks
- 4.5.2 4G LTE Network
- 4.5.3 Network Upgrade - 2017
- 4.5.4 Dark Fibre and MVNO Agreement with TPG Telecom
- 4.5.5 IoT Strategy
- 4.5.6 5G Strategy
- 4.5.7 MIMO Trial
- 4.6 Spectrum
- 4.7 MVNO Deals
- 4.8 Product and Services
- 4.8.1 Post-paid Plan Changes
- 4.8.2 Fixed line NBN Offering
- 4.9 Company history
- Table 1 - Total Telecoms Revenue by Major Provider / Category - 2014 - 2019
- Table 2 - Total Telecoms Revenue Annual Growth by Major Provider / Category - 2014 - 2019
- Table 3 - Total Telecoms Revenue Market Share by Major Provider / Category - 2014 - 2019
- Table 4 - Historic - Total telecoms revenues by smaller operators, and total - 2005 - 2013
- Table 5 - Historic - Total telecoms revenues by major providers - 2000 - 2004
- Table 6 - Telstra Group - Top Line Annual Financial Results - 2005 - 2017
- Table 7 - Telstra Group - Revenue ($billion) by Product Segment and Annual Change - 2015 - 2017
- Table 8 - Telstra Group - Revenue ($billion) by Operations Segment and Annual Change - 2015 - 2017
- Table 9 - Telstra Group - Mobile Handset ARPU by prepaid, postpaid- 2016 - 2017
- Table 10 - Telstra Group - Capital Expenditure - 2009 - 2017
- Table 11 - Telstra - Mobile Subscribers (millions) by prepaid, postpaid
- Table 12 - Telstra broadband subscribers by sector - 2007 - 2016
- Table 13 - Optus mobile subscribers, annual change - 2005 - 2017
- Table 14 - Optus mobile pre/postpaid and mobile broadband customers (thousands) - 2008 - 2017
- Table 15 -Optus - Key Operating Statistics - 2015 - 2017
- Table 16 - Optus mobile subscriber ARPU - 2009 - 2016
- Table 17 - Historical - Optus mobile subscribers, annual change - 1998 - 2004
- Table 18 - Overview of Optus overall operating revenue summary - 2000 - 2017
- Table 19 - Optus revenue - 2012 - 2017
- Table 20 - Optus Group- Financial Result - Division - 2014 - 2017
- Table 21 - Optus consumer and business fixed telephony statistics - 2009 - 2017
- Table 22 -Historical - Total internet subscribers (broadband and dialup) - 1996; 1998; 2000 - 2008
- Table 23 - Vodafone Australia revenue - 2009 - 2017
- Table 24 - VHA Monthly ARPU - 2015- 2016
- Table 25 - Historic - HTA key metrics - 2009 - 2015
- Table 26 - Historic - Monthly ARPU and by segment - 2009 - 2012
- Table 27 - Historic - Vodafone Australia revenue - 1996; 1998 - 2008
- Table 28 - Vodafone Australia (Group) - subscribers (millions) by type - 2009 - 2017
- Table 29 - VHA MVNO customers - 2014 - 2016
- Chart 1 - Total Telecoms Revenue ($ billion) by Major Provider / Category - 2014 - 2019
- Chart 2 - Total Telecoms Revenue Market Share by Major Provider / Category - 2014 - 2019
- Chart 3 - Optus mobile subscribers and annual change - 2001 - 2017
- Chart 4 - Optus mobile pre/postpaid customers - 2008 - 2017
- Chart 5 - Overall Optus overall operating revenue and annual change - 2001 - 2017
- Exhibit 1 - Telstra Corporation Ltd at a glance
- Exhibit 2 - Overview of the previous strategy
- Exhibit 3 - FOXTEL at a glance
- Exhibit 4 - Sensis Pty Ltd at a glance
- Exhibit 5 - Telstra's NGN planned implementation time-line - historic
- Exhibit 6 - Telstra-controlled entities (Australia)
- Exhibit 7 - Telstra-controlled entities (offshore) through Telstra Holdings
- Exhibit 8 - Jointly controlled and associated companies
- Exhibit 9 - Optus at a glance
- Exhibit 10 - The SingTel Optus network
- Exhibit 11 - Vodafone Australia (VHA) at a glance - including headline figures