Wednesday, 07 August 2019 20:41

Mobile data revenues major contributor to growth of Australian telecom market Featured

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Mobile data revenues major contributor to growth of Australian telecom market Image Stuart Miles, FreeDigitalPhotos.net

Mobile data revenue will remain the largest contributor to Australia’s telecom market between 2018 and 2023, driven by increasing smartphone subscriptions, expanding long-term evolution (LTE) networks, growth in the use of 4G services and the expected launch of commercial 5G services in 2020, according to a new report.

The report from analyst firm GlobalData also reveals that the share of smartphones in total handset subscriptions is expected to reach an estimated 94.3% by 2023, as all the major mobile network operators (MNOs) in the country continue to promote easy monthly bundled plans on smartphone purchases.

Deepa Dhingra, telecom analyst at GlobalData, says: “4G will continue to be the most adopted wireless network technology through the forecast period”.

“However, with the auctioned 5G spectrum licenses commencing operations from March 2020 and major MNOs accelerating their 5G network rollouts, 5G is expected to be commercially available in 2020 and account for an estimated 26.1% of the total mobile subscriptions by 2023.”

And GlobalData says fixed broadband revenue will register the fastest growth over the forecast period, mainly led by the rising demand for high-speed fibre broadband services.

In addition, the ongoing fixed broadband network expansions as part of NBN project will improve the penetration of fixed broadband services in Australia, GlobalData observes.

Mobile voice revenue will decline over the forecast period due to a significant drop in monthly usage rates and the overall voice average revenue per user (ARPU), with GlobalData cautioning that fixed voice revenue will also see a decline in value as a result of falling circuit-switched lines and declining fixed voice ARPU.

In the pay-TV market, GlobalData expects that increasing substitution of pay-TV services with over-the-top (OTT) video streaming applications will drag down pay-TV revenues through 2023.

“Operators are currently focusing on driving IPTV subscription base through fixed broadband + IPTV bundled plans to partially offset the continued decline in cable and direct-to-home (DTH) subscriptions,” Dhingra concluded.

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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