ITWire

But, Chaisatien says analysis shows that while the merger will create a strong and credible number three player, the combined entity will have leapfrogged Optus in the all-important 3G and mobile broadband segments by a wide margin.

"This transformed landscape will lead to greater coverage networks and better offerings, but it is hard to see how this will translate into more competitive prices for Australian mobile users," concluded Chaisatien concludes.

The Telsyte report cautions that, while mobile carriers will continue to thrive, handset vendors will be feeling the pinch this year as users prolong their handset replacement cycles, with handset shipments forecast to decline by 10% this year.
 
“Mobile usage growth is projected to remain strong in the next five years, with 125% penetration level mainly driven by machine-to-machine use and over five million mobile broadband users expected by 2013,” Chaisatien forecasts, adding that “prepaid will make a comeback as wholesale ISPs and MVNOs progressively commoditise 3G offerings.”