The overall telecoms services revenue reached over $42 billion in 2016, a growth of under 1% for the 12 months to June 2016. The overall market is predicted to grow at a stronger rate in 2017. The strongest growth is coming from the second tier providers, which grew at over 10% during that time period. The market incumbent Telstra still dominates the local telco landscape with well over 50% market share, however this market share is gradually declining. Prices for fixed-line and mobile voice services are being driven down by competition among operators, and by consumer reluctance to tolerate price increases, which engenders higher churn to other providers. Thus opportunities to drive revenue growth through higher consumer and business spend in the short term are limited to mobile data services.

1. INDUSTRY ANALYSES .1

1.1 Digital, sharing, interconnected infrastructure ...1

1.1.1 Introduction

1.1.2 The fixed telecoms market

1.1.3 The fixed broadband market

1.1.4 The National Broadband Network

1.1.5 Data Centres

1.1.6 Data Analytics

1.1.7 IoT/M2M

1.1.8 Cyber Crime

1.2 The mobile market ...5

1.2.1 Introduction

1.2.2 Market Broadband Market

1.2.3 Digital Media platforms

1.2.4 Mobile Advertising and Digital Marketing

1.2.5 Apps, Entertainment, Social Networks and Gaming

1.2.6 Mobile Media and Mobile Device Market

1.3 Video Streaming market ...8

1.3.1 Broadcasting and Pay TV

1.3.2 Video Streaming

1.3.3 Mobile Video Streaming

1.3.4 Digital Radio

2. STATISTICAL OVERVIEW OF THE TELECOMS MARKET ........10

2.1 Statistical overview – by provider .....10

2.1.1 Revenue, growth and market share by major provider

2.1.2 Telstra

2.1.2.1 Financial results by sector

2.1.2.2 Company Analysis

2.1.3 Optus

2.1.3.1 Financial results by sector

2.1.4 Company Analysis

2.1.5 Vodafone Hutchison Australia

2.1.5.1 Financial and operations overview

2.1.5.2 Company Analysis

2.1.6 Capital expenditure

2.1.7 2nd Tier Telcos

2.1.7.1 Market Overview

2.1.7.2 Market Revenues – Total Market

2.1.7.3 Market Revenues - Major Providers

2.1.7.3.1 TPG

2.1.7.3.1.1 iiNet

2.1.7.3.2 Vocus

2.1.7.3.3 Macquarie Telecom

2.2 Statistical overview – by service ........25

2.2.1 Analysis

2.2.2 Revenue Statistics

3. TELECOMS SERVICES – WHOLESALE AND COMPETITIVE ACCESS .....29

3.1 Introduction of regulatory instruments .....29

3.2 Regulatory instruments – analysis....30

3.3 Final access determinations for fixed line telecommunications ..30

3.4 Layer 2 bitstream on non-NBN Co networks .....31

3.5 Difference between peering and interconnection .......31

3.6 The thriving wholesale aggregation market .......31

3.6.1 Inabox

4. STATISTICAL OVERVIEW OF THE BROADBAND MARKET .....35

4.1 National Broadband Network – statistics and surveys ........35

4.1.1 The NBN wholesale market – ACCC report May 2016

4.1.2 Market Surveys

4.1.2.1 NBN to cost budget

4.1.2.2 Customers aren’t buying fast broadband because that is not what they are being sold

4.1.2.3 Economic Benefit of the National Broadband Network

4.1.2.4 NBN support still strong

4.1.2.5 Towards a Connected Australia - NBN Co Report 2015

4.1.2.6 FTTN modelling results

4.1.2.7 Broadband benefits for households

4.1.2.8 NBN key to the creation of 3 million jobs by 2030

4.1.3 The Digital Economy - Trans-Sector Market

4.1.3.1 Forecasts – 2015; 2020

4.1.4 Business Market Survey

4.1.4.1 NBN Business Readiness Survey

4.1.4.2 NBN impact on industry output by 2020

4.1.4.3 Summary of survey findings

4.2 FttN and VDSL ......44

4.2.1 FttN in NBN’s FY Results 2016

4.2.2 FttN vs FttH take-up

4.2.3 Analysis - High-speed broadband take-up is increasing

4.2.4 FttN overview 2014-2018

4.3 FttH statistical overview 2014-2018 .47

4.4 DSL market statistics and analyses ..48

4.4.1 Brief overview of the NBN

4.4.2 Regulatory environment – analysis

4.4.2.1 The impact of fibre optic networks on digital subscriber line (DSL) regulation

4.4.2.2 Unbundling of the local loop (ULL) and Bitsream Access

4.4.2.3 Wholesale DSL pricing

4.4.3 DSL infrastructure

4.4.3.1 Overview

4.4.3.2 Tool for competitors

4.4.3.3 DSLAM infrastructure

4.4.3.3.1 Key providers

4.4.3.3.2 ADSL2+ enabled exchanges

4.4.3.4 Street cabinet IP DSLAM2 upgrades (Top Hat)

4.4.3.5 FttN and VDSL

4.4.3.6 G-fast developments

4.4.4 Brief overview of broadband providers market

4.4.4.1 Market consolidation

4.4.4.2 The shrinking number of ISPs

4.4.4.3 Market share statistics

4.5 Business market - statistics and analyses ..59

4.5.1 Market trends

4.5.1.1 Business market overview

4.5.1.2 ISPs targeting the business sector

4.5.1.3 Broadband a stimulus to business progress

4.5.1.4 Business adoption of VoIP

4.5.1.5 The NBN and the business market

4.5.1.6 Business need faster speeds to communicate

4.5.1.7 The effects of broadband on business and government

4.5.2 Business market surveys

4.5.2.1 Surveys reveal that moving online benefits businesses

4.5.2.2 Sensis – e-business report

4.5.2.2.1 Introduction

4.5.2.2.2 Computer equipment

4.5.2.2.3 Broadband connection

4.5.2.2.4 Usage of the internet

4.5.2.2.5 Social Media in business

4.5.2.2.6 SME online advertising

4.5.3 Business customer expenditure on telecoms

4.5.3.1 Overall telecom spend – business market

4.5.3.2 SME market statistics

4.6 Residential market - statistics and analyses .......69

4.6.1 Statistical overview residential market – total telecoms

4.6.2 Internet household statistics

4.6.2.1 Australian Bureau of Statistics (ABS) surveys and internet connectivity

4.6.3 Trends in the residential market

4.6.3.1 Data increases in volume

4.6.3.2 Mobile broadband – no alternative to fixed line services.

4.6.3.3 Dial-up internet continues its decline

4.6.4 Household use of technology

4.6.4.1 Computer technologies

4.6.4.2 Broadband technologies

4.6.4.3 Internet social media activities

4.6.5 Other residential market surveys

4.6.5.1 Online services

4.6.5.2 Customer service issues and the Telecommunications Industry Ombudsman (TIO)

5. STATISTICAL OVERVIEW OF THE MOBILE MARKET .....79

5.1 Revenue overview and statistics ........79

5.1.1 Statistical sources

5.1.2 Total mobile services revenue and forecasts

5.1.2.1 Market overview

5.1.3 Operator revenue statistics overview

5.1.3.1 Background

5.1.3.2 Revenue by major operator

5.1.3.3 Revenue trends

5.1.3.4 Revenue share

5.1.3.5 Revenue by service

5.1.3.5.1 Market overview

5.1.4 Average revenue per user (ARPU)

5.1.4.1 Overview of ARPU

5.1.4.2 Blended ARPU

5.1.4.2.1 Prepaid and postpaid ARPU

5.2 Subscriber statistics 91

5.2.1 Statistical sources

5.2.2 Mobile subscriber statistics

5.2.2.1 Total subscribers and annual growth rates

5.2.2.2 Operator market shares and growth

5.2.2.3 2G, 3G and 4G subscribers

5.2.2.4 Background information

5.2.2.5 Prepaid and postpaid subscribers by operator

5.2.2.6 Wholesale market

5.2.3 Mobile Usage Stats

5.3 Mobile Broadband statistics, LTE and 5G ......102

5.3.1 Market overview and analysis

5.3.1.1 Mobile broadband to drive structural change

5.3.1.2 Mobile broadband slowly substitutes fixed services

5.3.2 Mobile broadband market statistics

5.3.2.1 Mobile broadband subscribers

5.3.2.2 Fixed wireless broadband market

5.3.2.2.1 Overview

6. VIDEO STREAMING – TRENDS, DEVELOPMENTS AND STATISTICS ....106

6.1 Impact of SVOD on traditional TV 106

6.1.1 Overview

6.1.2 Catch-up TV

6.1.3 Opportunities for Broadcasters

6.2 SVOD Market Sizing and Subscribers ....107

6.2.1 Overall Market

6.2.2 Subscribers and Pricing by Provider

6.2.3 Forecasts and Future Trends

7. PAY TV, FREE-TO-AIR – STATISTICS AND ANALYSIS ....109

7.1 Overview ......109

7.2 Subscriber statistics .......109

7.3 Consumer penetration statistics ......111

7.4 Usage Statistics .....112

7.5 Revenue statistics .112

7.6 Advertising revenue .......113