Optus now even more a mobile company

Stuart Corner
Wednesday, 11 November 2009 08:46

IT Industry - Strategy

In December 2008, Optus completed its 3G mobile network to its target of 96 percent population coverage. It plans to eventually reach 98 percent and says coverage will exceed 97 percent by 31 March 2010, making Optus "the only carrier capable of challenging [Telstra's network on both coverage and speed."

The company also flagged increased profitability in its fixed networks with the fixed on-net telephony customer base now exceeding one million, and the opening of the 200th Optus 'yes' store as highlights of the quarter. During the quarter, Optus increased its satellite capacity by 30 percent with the successful launch of its D3 satellite in August.

Total Business and Wholesale fixed revenue grew 2.2 percent. Optus said there had been strong growth in ICT and managed services revenues from new customer contracts, including the award by Brisbane City Council of its network managed services to Optus. However, these had been partially offset by lower corporate voice revenues.

Wholesale revenue was stable with growth from domestic on-net voice traffic and increased demand for Internet bandwidth being offset by lower international voice revenues. EBITDA margin was stable at 23 percent and operational EBITDA increased by 0.9 percent to $113 million.

In Consumer and SMB Fixed, consumer on-net revenue grew by 7.2 percent, from "continuing customer growth and ARPU management initiatives." Optus' on-net telephony customer base now exceeds one million, while on-net broadband customers grew 25,000 from a quarter ago to 905,000. Consumer and SMB fixed EBITDA grew 14 percent this quarter to $51 million.

Capital expenditure was stable at $274 million. The mobile division accounted for $124 million, $103 million of which was for the upgrade and expansion of Optus' 3G and High Speed Packet Access (HSPA) networks.