Australia Telecommunications Industry

Vikram Sondhi

Australian Telecommunications industry

Overview Main activities Major products and services Telstra Corporation Limited, SingTel Optus Pty Limited, and Vodafone Hutchison Australia Pty Limited

Telstra Corporation Limited y Australia's largest telecommunications carrier with over 41,000 employees SingTel Optus Pty Limited y An Australian foreign owned proprietary company that derives revenue as a provider of telecommunication services

Vodafone Hutchison Australia Pty Limited y Jointly owned by Hutchison Whampoa Group and Vodafone Group Plc. Vodafone Hutchison Australia y Operates under the following brands:  Three - Mobile telecommunications provider  Vodafone - Mobile telecommunications provider  Crazy John's - Mobile phone retail chain

Other Companies y Large gap between the three major telecommunications companies and the rest y TCNZ Australia, the owner of AAPT y Up-and-coming ISP, iiNet

Market Share
Telstra Corporation Limited SingTel Optus Pty Limited Vodafone Hutchison Australia Pty Limited Other Companies
46.0% Telstra 22.2% Optus 12.6% Vodafone Hutchison Other 19.2%

The relationship between telecommunication service providers Competition From monopoly to limited competition From state ownership to market driven From closed to open Historically,Telstra enjoyed a monopoly on the Telecommunications Services sector New entrants to directly challenge Telstras turf in 1997 Telstra vs Optus vs Vodafone Hutchison

iiNet is set to become Australias second largest ISP in 2010-11

The pricing policies across each provider Combination of service bundles, flat rates, payper-use, pre-pay, post-pay, and la carte pricing Competitive advantage Nice profit Australian Competition and Consumer Commissions (ACCC) pricing regulation Telstra announced its new iPhone plan giving $100 account credit to the new customers, the credit being automatically applied to their bills, until 26 December Optus is also offering bonus $100 bill credit to new customers which may seek to counter Telstras pricing strategy

Most popular mobile phones current deals from Australian carriers

Hundreds of combinations of a great deal on a new mobile phone and plan, to choose from

10 most popular lists for phone and deal combinations

No
1

Phone
Samsung Galaxy S II 16GB $20/mth Apple iPhone 4 16GB $33/mth

Carrier

Mobile phone plan

$29 Cap Contract $50 Credit - Online Only $49 Freedom Connect Plan $10 Monthly Member Credit $59 Freedom Connect Plan $15 Monthly Member Credit

Included value
$180

Data
200MB

Price/Month
$49.00 Save $50 min cost $1,126 $72.00 Save $240 min cost $1,728

$450

1GB

Apple iPhone 4 16GB $30/mth

$550

1.5GB

$74.00 Save $360 min cost $1,776

Samsung Galaxy S II 16GB $10/mth Apple iPhone 4 32GB $38/mth Samsung Galaxy S $10/mth Nokia X3-02 $0 upfront Samsung Galaxy S II 16GB $5/mth Apple iPhone 4 32GB $35/mth

$45 Infinite Plan Special Introductory Price and $50 Credit $49 Freedom Connect Plan $10 Monthly Member Credit

Unlimited

500MB

$55.00 Save $50 min cost $1,270

$450

1GB

$77.00 Save $240 min cost $1,848 $39.00 Save $58 min cost $878 $79.00 Save $237 min cost $1,659 $64.00 Save $118 min cost $1,418

$29 Optus Cap 2 Months Free $79 Optus Cap 3 Months Free $59 Optus Cap 2 Months Free

$180

200MB

$900

3GB

$750

2GB

$59 Freedom Connect Plan $15 Monthly Member Credit

$550

1.5GB

$79.00 Save $360 min cost $1,896

10

Apple iPhone 4 16GB $25/mth

$79 Freedom Connect Plan $20 Monthly Member Credit

$800

2GB

$84.00 Save $480 min cost $2,016

Legislations that may affect telecommunication industry

y

The Australian Government introduced a package of legislation to give effect to a policy that would provide a more competitive telecommunications industry from 1 July 1997 Comprising 11 separate acts  Trade Practices Act 1974 (TPA)  A new Telecommunications Act 1997 (Telecommunications Act)

Legislations that may affect telecommunication industry

Australian Competition and Consumer Commission have the responsibility for competition and economic regulation of telecommunications, while technical regulation would rest with the Australian Communications Authority (ACA) Represents the federal and state government policies and regulations for the telecommunications industries and new network user industries


Legislations that may affect telecommunication industry

A decrease in the regulatory burden of this sector will increase competition, placing pressure on pricing and stimulating demand

Conclusion
The explosion in connectivity has entrenched telecommunications as a vital part of the day-to-day functioning of Australian businesses and has changed the way Australians interact, with social networking transitioning online. Telecommunications services are currently provided using wired, wireless and satellite infrastructure. Over the course of the period there has been an increased demand and use of telecommunications services. Growth will be the result of advances in technology, expanding network coverage and network infrastructure upgrades