Aussie Telco Market Slowed In 2006: Telsyte Print E-mail
Written by Adam Gosling   
Wednesday, 04 April 2007
Australian Telecommunications industry number cruncher, Telsyte has done the sums for 2006 and the bottom line is not a great result for the telecommunication's industry.
The converged communications researcher says the A$24 Billion Australian Telecommunications industry slowed "markedly" in 2006 as a lack of direction and innovation put the business in the doldrums.

The results were released as three separate studies that form part of its 2007 Market Analysis and Forecast Report Series, offering a review of the 2006 industry performance and a five-year analysis and forecast for the Australian Fixed Line, Mobile, and Enterprise Communications markets.

Warren Chaisatien, Telsyte managing director, said a lack of compelling next-generation applications and the continued commoditisation of basic services caused Australia's telecom market growth to slow markedly to just over 2.5% last year.

Broadband speeds remained a bottleneck for both business and consumer, while 2G-type of non-voice usage still dominated the mobile segment, observed Chaisatien.

Highlights of the major findings include:·

* Australia's the top three carriers - Telstra, Optus, and Vodafone - generated three-quarters of the A$24.4 billion spent on telecom services in 2006.
* Next-generation IP-based services only made up one-fifth of total spending, and although that proportion will double in five years' time, Australia will remain an "old-generation"telecom market by 2011.
* Reaching 100% penetration, mobile unseated PSTN to emerge as the largest segment for the first time last year, while 3G finally made its presence felt by putting a break on the industry's incessantARPU slide.
* Broadband users managed to outnumber dial-up users in 2006, and the VoIP subscriber base is poised to increase five-fold in the next five years.
* The enterprise telephony market entered an anticipated slump last year, registering growth of a mere 3% after enjoying four consecutive years of 20%+ expansion.
* With the gap between enterprise telephony market leaders Cisco and Avaya closing in 2006, future gaps between market leaders and followers will also narrow as vendor differentiation diminishes.

Published annually, the Market Analysis and Forecast Series reports are designed to provide a detailed investigation and comprehensive analysis of Australia's converged communications space as well as deliver unique insights and valuable recommendations to market players. Data sheets for 2006 market data and 2007-2011 forecast data are also available for purchase from our Instant Forecast online database service.

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