Australia - Telco Company Profiles - 2nd Tier
Author: Bharat Book Bureau
Australia - Telco Company Profiles - 2nd Tier
The second-tier market is on the verge of massive changes which will occur over the next few years. The critical factors are what changes to the regulatory environment will occur, and even more importantly, how the National Broadband Network develops. ( http://www.bharatbook.com/detail.asp?id=129750&rt=Australia-Telco-Company-Profiles-2nd-Tier.html )
Second-tier companies are likely to have to reposition themselves. Second-tier firms in Australia are usually virtual service providers to the mass market which purchase services on a wholesale basis from network operators. A number of second-tier firms are infrastructure operators of networks serving niche markets. Several second-tier firms offer a range of telephony services such as mobile and landlines, as well as Internet access. A second group consists of firms which offer only one type of telephony service such as Vodafone or 3 with mobile voice and data services.
Four of the second-tier players: AAPT, Commander, Vodafone and Hutchison now have annual revenues exceeding the $1 billion mark. This report provides an analysis of the current outlook for the major second-tier firms as well as statistics relating to revenues and market shares. The second-tier segment is very interesting in terms of mergers and acquisitions in Australia. In 2009 Vodafone and Hutchison (3) in Australia, the third and fourth largest mobile network operators merged their operations. M2 acquired People Telecom in mid-2009 to create the largest firm without significant infrastructure assets, and further consolidation is expected over the period to 2011.
Australia will be the first country in the world in which the industry will adopt a new plan for the future. In the past this was based on ad hoc decisions and there was little room for long-term planning. The market survived on the crumbs that fell from the Telstra table, and on regulatory relief, which often took many years to arrive and was often too late to help a starving competitive environment.
Uncertainty was a major obstacle. All decisions depended on Telstra and there was little hope for individual initiatives. Those who developed their own independent plans quickly discovered that Telstras reach was long and deep. Good examples of this are TransACT in Canberra and the Unwired service. Even larger companies like Optus and AAPT (Telecom New Zealand) struggled to set their own course.
The single most important element of the National Broadband Network (NBN) is that it will provide certainty about future direction. There will be problems, and the outcome will not be perfect, but for the first time individual companies are far more in charge of their own destiny.
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