Tuesday, 17 November 2020 11:50

Pandemic hits mobile services market in six months to June

Pandemic hits mobile services market in six months to June Pixabay

Lower numbers of international visitors and a drop in immigration due to the ongoing pandemic has affected the mobile services market, the telecommunications analyst firm Telsyte claims, adding that this fall was the first in the last decade.

The number of services in operation fell by 62,000 to 36.2 million for the six months that ended in June, Telsyte said in a statement on Tuesday.

This meant a fall of 4% in mobile services revenue which was $13 billion for the FY2020.

The Telsyte Australian Mobile Services Market Study FY2020 tracks mobile services in operation, including handsets, mobile broadband and mobile IoT for business applications.

The company said the fall was mainly in pre-paid handsets which fell by 5% from December 2019. The mobile IoT category was the main driver of growth as there was more take-up of IoT solutions by businesses as part of their digital strategy.

"Telsyte estimates there were around 4.4 million mobile IoT services in operation at the end of June 2020, up 8% from December 2019," the statement said.

Telsyte found that the MVNO segment had strong growth during the six months, reaching almost 16% of services in operation at the end of June, an increase of 2% from the previous financial year.

Among the big telcos, Optus and TPG Telecom took a beating while Telstra retained its market share due to a strong showing in the mobile IoT space.

Telsyte said it expected the total number of handset SIOs would remain at similar levels during the next 12 to 18 months.

"Consumers are set to be the big winners in the next 12 months as mobile service providers battle it out with attractive offers," Telsyte senior analyst Alvin Lee said.

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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