Market Clarity maps decline in fixed voice market

Stuart Corner
Thursday, 23 February 2006 17:29

IT Industry - Market

Market Clarity, the research company formed earlier this year by Telsyte founder, Shara Evans, has published its first report: an historical analysis and forward projection of voice services provided by the top eight carriers, which together represent more than 90 percent of the fixed voice service revenues in Australia.

The report is based on data from 2000-2005 and makes forecasts out to 2010. A key finding is that fixed-to-mobile calls, one of the most expensive call categories, are skyrocketing while local call volumes and revenues are in decline.

The report also predicts a decline in basic access services driven by the cancellation of second lines - used for dial up internet access - as consumers move onto broadband services. Market Clarity predicts that the residential second line market will shrink by 71 percent by 2010 while primary line residential services will decline by about nine percent only.

Evans identifies the area of greatest concern to telcos as being the continuing decline in revenues from most segments of the fixed line call market. "Since 2000, volumes of local calls have fallen by three percent and long distance calls have fallen by 4.3 percent," Evans said. "Fixed-to-mobile calls are making inroads into both of these segments, however. By the end of the decade, we believe local call volumes will be down more than 22 percent from their 2000 levels, while long distance calls will fall by close to 26 percent...Between 2005 and 2010, we believe fixed-to-mobile call minutes will rise by more than 24 percent, or 1.59 billion minutes annually. However, competitive pressure will limit revenue growth in this segment to less than $80 million in the same period."