Australian Telecommunications Market Outlook 2018

Pressures mount as nbn ramps up its rollout while mobile continues to deliver strong growth

Total Telco market revenue by vertical

  • The introduction and the rollout of the NBN has been one of the key inflection points in the Australian telco market. However, as the rollout progresses, complaints continue and the tug-of war with RSPs over CVC charges continues. This discord has led to both major and smaller RSPs experiencing a tight squeeze on margins and opportunities for bypass options

  • The Mobile segment continues its upward march but the market is about to see the impacts of a new wave of innovation (5G, IoT) and disruption (TPG Vodafone merger) in the next few years. This will severely impact fixed line broadband and nbn’s business case

  • The merger between TPG and Vodafone will create a strong third MNO in Australia and long term competition and pricing pressure with Optus and Telstra

  • Growth and broader acceptance in public cloud solutions is driving growth in the data markets as the corporate market is increasingly consolidating their voice, data and applications traffic

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