Hanging up: The popularity of wireless services has diminished industry revenue

The need to communicate is an integral part of Australian households, businesses and government offices. However, the way in which people communicate has been changing, mostly at the expense of the Wired Telecommunications Network Operation industry. Australians highly value constant connectivity. As a result, mobile phones have become the dominant form of communication, while Voice over Internet Protocol (VoIP) is an increasingly common choice for long-distance calls. VoIP includes services such as Skype, WhatsApp and Google Hangouts, in addition to specialised VoIP business packages offered by internet service providers such as iiNet...read more.

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

Industry Threats & Opportunities

  • Strong price-based competition among mobile providers has diminished the use of fixed lines
  • Profitability has dropped due to falling industry demand, particularly for fixed line voice services
  • Operators are forecast to continue bundling unregulated services with fixed line plans
  • Industry Report - Industry Key Buyers Chapter

    The industry is highly capital-intensive. As a result, no company has historically been able to create a network to rival Telstra's copper network. However, the creation of NBN Co, which will build and manage the wholesale-only network, will serve to partly constrain Telstra's market share. Telstra has announced its willingness to cooperate with the government, transferring ownership of its legacy copper network to NBN Co. Concentration will remain high if a major player switches from Telstra to NBN Co, and will also remain high if both companies split Telstra's current majority market share.The four largest players are expected to account for over 80% of industry revenue in 2018-19, indicating high market share concentration. In ...purchase to read more.

    Additional Insights for the Wired Telecommunications Network Operation Industry

    IBISWorld has determined the most important Key Success Factors for the Wired Telecommunications Network Operation are:

  • Economies of scope
  • Development of a symbiotic relationship with another industry
  • Ready access to investment funding
  • IBISWorld analysts also discuss how external factors such as Mobile telecommunications density and Demand from telecommunications and other electrical goods wholesaling in the Wired Telecommunications Network Operation industry impact industry performance..

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    What's in this report

    What is the Wired Telecommunications Network Operation Industry?

    Industry operators provide voice and data services via landlines, microwaves or satellite link-ups. Services include fixed-wire telephony, wired network and cable services, including ISDN and ATM frame relay. Industry participants operate and maintain their own switching and transmission facilities, or may own a fixed line telephone network system consisting of wires or fibre-optic cable. Spare capacity is sold to other telecommunications carriers or resellers.

    Industry Products
  • Data services
  • Voice services
  • Other services
  • Industry Activities
  • Data cable communication service provision
  • Payphone operation
  • Telegram service provision
  • Telephone exchange operation
  • Fixed-wire telephone service provision
  • Wired network communication service provision
  • Integrated services digital network provision
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Mobile telecommunications density
  • Demand from telecommunications and other electrical goods wholesaling
  • Number of businesses
  • Number of households

  • Current Performance
  • Participation and profit
  • Mobile substitution
  • Line rentals
  • Pricing tactics
  • Chart: Revenue Growth

  • Industry Outlook
  • External competition
  • Convergence
  • National Broadband Network
  • Table: Wired Telecommunications Network Operation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wired Telecommunications Network Operation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electricity, Gas, Water and Waste Services
  • Accommodation and Food Services
  • Consumer Goods Retailing
  • Finance
  • Telecommunications Resellers
  • Consumers

  • Key Selling Industries
  • Construction
  • Electric Cable and Wire Manufacturing

  • Products & Services
  • Data services
  • Voice services
  • Other services
  • Chart: Wired Telecommunications Network Operation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses
  • Government
  • Chart: Major Market Segmentation for the Wired Telecommunications Network Operation 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 Wired Telecommunications Network Operation

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wired Telecommunications Network Operation Industry

  • Industry Globalization
    Telstra Corporation Limited, NBN Co Limited, SingTel Optus Pty Limited, Vocus Group Limited,
  • Table: Telstra Corporation Limited - financial performance
  • Table: NBN Co 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 Wired Telecommunications Network Operation 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 Wired Telecommunications Network Operation 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
  • A trend where fixed telephony, broadband internet and pay-TV become amalgamated, with network operators and relevant infrastructure providing multiple services.
  • Customer Churn Rate
  • The proportion of subscribers that leave a carrier during a given time period (e.g. quarterly or annually).
  • Naked Dsl
  • Broadband connection that does not come with a telephone service, which is replaced with VoIP. Requires ULL line rental access but not PSTN access, typically leading to lower prices.
  • Public Switched Telephone Network (Pstn)
  • Traditional analogue phone network that uses Telstra's copper cables.
  • Unconditioned Local Loop (Ull)
  • Occurs when a third party rents access to Telstra's copper network from an exchange to a customer's premises, with the third party having to provide all services on the line independent of Telstra.
  • Voice Over Internet Protocol (Voip)
  • Delivery of voice communications over the internet rather than the PSTN.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wired Telecommunications Network Operation market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wired Telecommunications Network Operation:
    • 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 Wired Telecommunications Network Operation 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 Wired Telecommunications Network Operation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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