Crossed wires: The NBN rollout has boosted industry revenue, but caused profit to decline

The Internet Service Providers industry retails internet services, and includes firms that own or lease telecommunications infrastructure. Industry revenue is derived from providing internet services to consumers, businesses and government entities. Internet service providers (ISPs) have historically been among the fastest growing operators in the technology sector. Increasing reliance on the internet for business and leisure, growing data usage from consumers and businesses, and the rise in domestic web accessibility (spurred on by the ongoing NBN rollout) have been driving the industry's expansion. Industry revenue is expected to rise at an annualised 5.5% over the five years through 2018-19, to reach $6.8 billion. This includes revenue growth of 3.4% in the current more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Major players have capitalised on growth in second-tier ISPs, increasing industry consolidation
  • Second-tier telcos have built scale, developed margins and improved competitiveness through mergers
  • The industry has scope for growth from businesses that currently lack online distribution channels
  • Industry Report - Industry Locations Chapter

    The geographic spread of internet subscribers is highly correlated with the spread of the Australian population. ISPs are predominately located in Australia's major population centres, the three eastern seaboard states of New South Wales, Victoria and Queensland. However, the accessibility of ISPs to consumers across geographic areas has expanded over time. In recent years, there has been a trend outwards to less-populated areas. The Federal Government's Universal Service Obligation, its Networking the Nation policy and the continuing NBN rollout have encouraged this spread. Another key determinate has been the surge in demand from the rural sector for electronic services.Currently, the eastern states dominate the proportion of internet subscribers. New...purchase to read more.

    Additional Insights for the Internet Service Providers Industry

    IBISWorld has determined the most important Key Success Factors for the Internet Service Providers are:

  • Access to required utility infrastructure
  • Economies of scale
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Households with internet access and Number of businesses in the Internet Service Providers industry impact industry performance..

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    What's in this report

    What is the Internet Service Providers Industry?

    Industry players provide internet access through fixed lines to businesses, households and governments. Internet services are provided through dial-up, integrated services digital network and fixed broadband connections. The industry also provides internet-reliant telecommunications services such as voice over internet protocol (VoIP). The industry excludes the provision of mobile internet.

    Industry Products
  • Digital subscriber line (DSL)
  • Cable
  • Fibre
  • Dial-up
  • Satellite
  • Fixed Wireless
  • Industry Activities
  • Internet service provision
  • Internet hosting
  • Dial-up internet provision
  • Broadband internet provision
  • Voice over internet protocol provision
  • Merchandise retailing
  • Internet backbone servicing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Households with internet access
  • Number of businesses
  • Mobile telecommunications density
  • Real household disposable income

  • Current Performance
  • Household reliance
  • Business adoption
  • Mobile competition
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Growing internet usage
  • National Broadband Network
  • Industry structure and profitability
  • Table: Internet Service Providers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Internet Service Providers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wholesale Trade
  • Education and Training
  • Consumer Goods Retailing
  • Health Services
  • Consumers

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Computer and Electronic Office Equipment Manufacturing
  • Wired Telecommunications Network Operation
  • Wireless Telecommunications Carriers

  • Products & Services
  • Fibre
  • Digital subscriber line (DSL)
  • Cable
  • Fixed Wireless
  • Satellite
  • Dial-up
  • Chart: Internet Service Providers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Household subscribers aged 35-54
  • Businesses and government
  • Household subscribers aged 15-34
  • Household subscribers aged 55+
  • Chart: Major Market Segmentation for the Internet Service Providers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Internet Service Providers

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Internet Service Providers Industry

  • Industry Globalization
    Telstra Corporation Limited, TPG Telecom Limited, SingTel Optus Pty Limited, Vocus Group Limited,
  • Table: Telstra Corporation Limited - financial performance
  • Table: TPG Telecom Limited - financial performance
  • Table: SingTel Optus Pty Limited - financial performance
  • Table: Vocus Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Internet Service Providers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Internet Service Providers Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Asymmetric Digital Subscriber Line (Adsl)
  • A line with different downstream and upstream data speeds.
  • Megabits Per Second (Mbps)
  • A measure of data transfer speed. A megabit is equal to one million bits.
  • Public Switched Telephone Network (Pstn)
  • Telecommunication infrastructure made up of telephone lines, fibre-optic cables and satellites, which are linked by switching centres.
  • Software-As-A-Service
  • The sale of software on a subscription basis with related customer support, rather than the sale of standalone products.
  • Voice Over Internet Protocol (Voip)
  • A process of communicating through speech via the internet rather than through a telephone call.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Internet Service Providers market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Internet Service Providers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Internet Service Providers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Internet Service Providers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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