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Industry Profile: Australian Wireless Internet Providers
Telsyte, April 2005, Pages: 58
With around 20,000 subscribers, Australia's Wireless Local Loop (WLL) market represents only a small proportion of the Australian broadband market, but both user numbers and service provider numbers are growing. Meanwhile, although Australia's Hotspot infrastructure owners remain stable, the number of Hotspots they have in operation is exploding.
There are two of the key findings of the new Industry Profile report investigating the Australian Wireless Internet market. The report examines the operations of more 117 ISPs offering WLL and Hotspot services, either on their own infrastructure or as resellers of wholesale services.
The report also provides 11 geographic maps providing a visual indication of Hotspot density in all capital cities.
The Australian Wireless Internet Providers report finds that while the WLL market is already close to achieving sustainable revenues, the Hotspot market remains a questionable business case. The 866 Hotspots in operation at the time of the report are producing revenues on an annualised basis of less than $1.5 million in total for FY 2004/2005, and Average Revenue Per Location (ARPL) of less than $150 per month.
While Unwired and PBBA remain the highest-profile WLL service providers in Australia, we have found that the combination of longer reach and HiBIS support has led to a growing number of regional ISPs electing to add WLL services to their portfolios. This is supported by an emerging 'virtual wireless ISP' business model offered by wholesalers such as Veridas and Wireless Broadband Services (WBS).
The report also examines various growth models for the WLL and Hotspot industries, and provides several scenario-based revenue projections for both segments.
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