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Australia telecom industry’s defensive nature to keep it steady

Globally, the telecommunications sector is proving to be a core and essential infrastructure service to national economies, with data infrastructure becoming critical in a connected world and will likely increasingly attract a new class of investors such as large infrastructure funds. The Australian telecommunications industry is expected to remain steady thanks to the defensiveness nature of the industry, amid the political uncertainties and an uncertain economic outlook due to the COVID-19 pandemic.

Australia has one of the most competitive and mature telecommunications markets in the world. Research and Markets forecasts that mobile subscriptions will continue to grow in the 2022-27 period while fixed broadband subscribers also expected to grow at a slightly lower average rate over the same period.

Research and Markets forecasts the overall telecoms market bottomed out in 2021 as NBN subscriber payments to Telstra and Optus decline gradually as all Telstra’s copper and HFC services are migrated onto the NBN and market growth will resume from 2022 onwards.

Telstra’s share of the telecommunications revenue pie has been declining over the last 5 years and its EBITDA share is declining even faster as Telstra’s dominance in the fixed-line market is challenged with the migration onto the NBN.

CT Bureau

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