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Australia - Telco Company Profiles - 2nd Tier - Product Image

Australia - Telco Company Profiles - 2nd Tier

  • Published: December 2013
  • Region: Australia
  • 121 Pages
  • Paul Budde Communication Pty Ltd
Rapid Consolidation In The 2nd Tier Market

FEATURED COMPANIES

  • AAPT (bought by TPG)
  • Foxtel
  • iiNet Limited
  • M2 Telecommunications
  • Macquarie Telecom
  • TPG Telecom Limited
  • MORE

This report provides an overview of some of the larger 2nd-tier market players with key revenue figures for the market with brief financial and operational overview on the companies with analysis and data provided in several formats including easy-to-read charts and tables.

The company profiles provided in this report are: Amcom Telecommunications Limited, Foxtel, iiNet Limited, Macquarie Telecom, M2 Telecommunications, AAPT (bought by TPG), Nextgen Networks (Nextgen Group),TPG Telecom Limited.

There is a separate report that covers: Telstra, Optus and Vodafone.

1. Telecoms Market Revenue Overview
1.1 Total telco market by major service
1.2 Wholesale market
1.2.1 The market into 2014
1.2.2 Wholesale revenue
1.3 Mobile market
1.3.1 Market overview and analysis
1.3.2 Revenue by service
1.3.3 Average revenue per user (ARPU)
1.4 Broadband market
1.4.1 Internet access revenues

2. National Broadband Network
2.1 Wholesale and Competition
2.1.1 The NBN (after the elections) and the competition issues
2.1.2 National Broadband Network – Policies and Regulations
2.1.3 Wholesale Product Overview
2.1.4 The NBN wholesale and PoI debate
2.1.5 NBN Co’s multicast service
2.1.6 Pricing Strategies
2.1.7 NBN Utility Management service – The Retail Clause
2.1.8 Do we need infrastructure-based competition?

3. Amcom Telecommunications Limited
3.1 Company information
3.1.1 Overview
3.2 Company analysis
3.2.1 Well defined strategies
3.2.2 Independence from others
3.2.3 National broadband network (NBN)
3.3 Financial results
3.3.1 Year 2013
3.3.2 Year 2012
3.3.3 Year 2011
3.3.4 Financial statistics
3.4 Products and services
3.4.1 Divisional overview
3.4.2 Amnet
3.4.3 Data Networks
3.5 Network
3.5.1 Fibre network overview
3.5.2 SABRENet and maintenance agreement
3.6 Acquisitions, alliances and subsidiary companies
3.6.1 Acquisition overview
3.6.2 Amcom acquires IP Systems (IPS)
3.6.3 Amcom acquires L7 IT group
3.6.4 Partnership with BlueFire cloud services
3.6.5 Subsidiary companies
3.7 Company history
3.7.1 Brief timeline – 1988 - 2013

4. iiNet
4.1 Company information
4.1.1 Overview
4.1.2 Current issues
4.2 Financial results
4.2.1 Year 2013
4.2.2 Year 2012
4.2.3 Year 2011
4.3 Operating results
4.3.1 Subscriber statistics
4.4 Company analysis
4.5 Network
4.5.1 Overview
4.5.2 DSLAM rollout
4.5.3 Dark fibre
4.5.4 Fibre-to-the-Home (FttP)
4.5.5 iiNet’s plans for undersea network expansion taking shape
4.6 Acquisitions, alliances and subsidiary companies
4.6.1 Acquisition overview
4.6.2 Partnership with Polycom
4.6.3 Acquisition of ISP Westnet
4.6.4 Alliance with FOX Sports
4.6.5 Alliance with Hypernia
4.6.6 Alliance with Hybrid Television Services
4.6.7 Alliance with Hutchison
4.6.8 Amcom and PowerTel acquire stake in iiNet
4.6.9 Partnership with FetchTV
4.6.10 Acquisition of AAPT Consumer Division
4.6.11 Acquisition of Supernerd
4.6.12 Acquisition of TransACT
4.6.13 Acquisition of Internode
4.6.14 Acquisition of Adam Internet
4.7 Products and services
4.7.1 Home and SOHO
4.7.2 Business
4.7.3 Reselling agreements
4.8 Company history
4.8.1 Brief timeline – 1993 - 2013

5. Macquarie Telecom
5.1 Company information
5.1.1 Overview
5.2 Financial results
5.2.1 FY 2013
5.2.2 FY 2012
5.2.3 FY 2011
5.2.4 Operating revenues and statistical overview
5.3 Company Analysis
5.3.1 Leader in managed business services
5.3.2 National Broadband Network (NBN)
5.4 Data network
5.4.1 Metro Access Network (MAN)
5.4.2 Mobile network
5.5 Services
5.5.1 Hosting solutions
5.5.2 Telco
5.5.3 Management tools
5.5.4 Data centres
5.5.5 Macquarie Telecom Enterprise Cloud
5.6 Company history
5.6.1 Brief timeline – 1992 - 2013

6. M2 Telecommunications
6.1 Company information
6.1.1 Overview
6.2 Company analysis
6.2.1 Growing the company
6.2.2 Arriving in the top ten
6.3 Financial results
6.3.1 Year 2013
6.3.2 Year 2012
6.3.3 Year 2011
6.3.4 Financial statistics overview
6.4 Services
6.4.1 Fixed-line voice
6.4.2 Mobile
6.4.3 Internet
6.4.4 Brands
6.5 Products and services
6.5.1 Overview
6.5.2 M2 Telecom (retail)
6.5.3 M2 Wholesale
6.6 Acquisitions, alliances and subsidiary companies
6.6.1 Acquisition overview
6.6.2 Acquisition Dodo – 2013
6.6.3 Acquisition Eftel – 2013
6.6.4 Acquisition Primus Telecommunications – 2012
6.6.5 Acquisition Time Group – 2012
6.6.6 Acquisition of Flextalk – 2012
6.6.7 Acquisition of AUSTAR Mobile – 2011
6.6.8 Acquisition of Clear Telecoms (M2 Clear) – 2011
6.6.9 Acquisition of Bell Networks – 2010
6.6.10 Acquisition of Clever Communications – 2010
6.6.11 Acquisition of People telecom – 2009
6.6.12 Acquisition of Commander assets – 2009
6.6.13 Acquisition of Unitel Australia – 2008
6.6.14 Acquisition of Orion Telecom – 2007
6.6.15 Acquisition of Tenex Communications – 2007
6.6.16 Acquisition of Wholesale Communications – 2007
6.7 Company history
6.7.1 Brief timeline – 1999 - 2013

7. Foxtel
7.1 Company information
7.1.1 Overview
7.2 Operational results
7.2.1 2013
7.2.2 2012
7.2.3 2011
7.2.4 Subscriber statistics
7.2.5 Historic subscriber statistics
7.3 Financial results
7.3.1 FY 2013
7.3.2 FY 2012
7.3.3 FY 2011
7.3.4 Statistical financial overview
7.3.5 Historical statistical financial overview
7.4 Acquisitions, alliances and subsidiary companies
7.4.1 Acquisition of AUSTAR
7.4.2 Acquisition of Premium Movie Partnership (Showtime)
7.5 Products and services
7.5.1 Digital pay TV
7.5.2 Apps availability and the move to IPTV
7.5.3 FOXTEL further expanding IPTV availability
7.5.4 Optus resells 1Q HD
7.5.5 Triple-play services
7.5.6 Satellite services
7.5.7 Operating centres in Sydney and Melbourne
7.6 Company history
7.6.1 Brief timeline – 1994 - 2013

8. Nextgen Networks Pty Limited
8.1 Company information
8.1.1 Overview
8.1.2 Background information on company ownership
8.1.3 Recent developments
8.2 NBN - Regional Backbone Blackspots Program (RBBP)
8.2.1 Background information
8.3 Network
8.3.1 Overview
8.4 Products and services
8.4.1 Introduction
8.4.2 High-speed internet
8.4.3 Transmission
8.4.4 Data centres
8.4.5 Customised data solutions
8.5 Acquisitions and alliances
8.5.1 Nextgen acquires Silk telecom (Silk)
8.6 Company history
8.6.1 Brief timeline – 2000 - 2013

9. TPG Telecom
9.1 Company information
9.1.1 Overview
9.2 Company analysis
9.3 Latest developments
9.3.1 TPG offers low cost mobile broadband
9.3.2 TPG moves with TrustedCloud
9.3.3 Acquires AAPT
9.3.4 Secures mobile spectrum
9.3.5 Invests in subsea cable
9.4 Company divisional overview
9.4.1 Company structure
9.5 Network
9.5.1 Overview
9.5.2 PIPE Networks
9.6 Financial results
9.6.1 Year ending July 2013
9.6.2 Year ending July 2012
9.6.3 Year ending July 2011
9.6.4 Financial statistical overview
9.6.5 Operational statistical overview
9.7 Products and services
9.7.1 Residential services
9.7.2 Business and wholesale services
9.8 Company history
9.8.1 Brief timeline – 1999 - 2013

Table 1 – Historic - Total telecoms market – retail revenue by service – 2001 - 2004
Table 2 – Total telecoms market – retail revenue by service – 2005 - 2014
Table 3 – Total telecoms market – annual retail growth by service – 2001 - 2014
Table 4 – historic - Total telecoms market – retail market share by service – 2000 - 2004
Table 5 – Total telecoms market – retail market share by service – 2005 - 2014
Table 6 – Historic - Wholesale market revenues by major supplier – 2000 - 2004
Table 7 – Wholesale market revenues by major supplier – 2005 - 2014
Table 8 – Wholesale market shares – by major supplier – 2000 - 2014
Table 9 – Historic - Annual change in wholesale market revenues by major supplier – 2000 - 2004
Table 10 – Annual change in wholesale market revenues by major supplier – 2005 - 2014
Table 11 – Historic - Total mobile services market revenue and annual change – 2000 - 2004
Table 12 – Total mobile services market revenue and annual change – 2005 - 2014
Table 13 – Historic - Mobile market revenue per major operator – 1993 - 2004
Table 14 – Mobile market revenue per major operator – 2005 - 2014
Table 15 – Historic - Annual change of mobile market revenue per major operator – 1994; 1997; 2000 - 2004
Table 16 – Annual change of mobile market revenue per major operator – 2005 - 2014
Table 17 – Proportion of mobile service revenue from voice and data – 2007 - 2014
Table 18 – Blended ARPU per month per major operator – 2000 - 2014
Table 19 – Blended ARPU per month per major operator – annual change – 2004 - 2014
Table 20 – Broadband revenues by major provider – 2005 - 2013
Table 21 – Annual change in broadband access revenues by major provider – 2006 - 2013
Table 22 – Market share of internet access revenues (broadband and dial-up) by major provider – 2004 - 2014
Table 23 – NBN pricing schedule for access virtual circuits
Table 24 – NBN pricing schedule for PoI connections
Table 25 – Amcom – operating revenue – 2000 - 2013
Table 26 – Amcom – key financial indicators – 2010 - 2013
Table 27 – Amcom – EPS – 2010 - 2013
Table 28 – Amcom revenue by service division – 2004 - 2012
Table 29 – Amcom revenue by service division – 2004 - 2012
Table 30 – Amcom’s acquisitions – 2001 - 2013
Table 31 – iiNet total revenue – 2004 - 2013
Table 32 – iiNet key financial statistics – 2007 - 2013
Table 33 – iiNet ARPU by service – 2008 - 2013
Table 34 – iiNet total revenue (historic) – 1997 - 2003
Table 35 – Historic - iiNet active subscribers – 1997 - 2004
Table 36 – iiNet active subscribers – 2005 - 2013
Table 37 – iiNet internet subscribers by type – 2007 - 2013
Table 38 – iiNet voice subscribers by type – 2007 - 2013
Table 39 – iiNet DSLAM exchanges – 2009; 2011 - 2012
Table 40 – iiNet’s acquisitions – 2003 - 2013
Table 41 – Internode ADSL2+ statistical overview – 2006 - 2012
Table 42 – iiNet business revenue – 2009 - 2012
Table 43 – Macquarie key financial indicators – 2008 - 2013
Table 44 – Macquarie EPS results – 2008 - 2013
Table 45 – Macquarie – annual revenue by division – 2004 - 2013
Table 46 – Macquarie – annual change in revenue by division – 2005 - 2013
Table 47 – Macquarie – revenue contribution by division – 2004 - 2013
Table 48 – M2 key financial parameters – 2012 - 2013
Table 49 – M2 revenue makeup and annual change – 2004 - 2013
Table 50 – M2 key financial parameters – 2010 - 2012
Table 51 – M2 key financial performance indicators – 2004 - 2013
Table 52 – M2’s acquisitions – 2005 - 2013
Table 53 – Total FOXTEL and wholesale subscribers – 2012 - 2014
Table 54 – FOXTEL and wholesale subscribers by annual change – 2012 - 2014
Table 55 – FOXTEL Subscriber annual churn rate – 2012 - 2014
Table 56 – Historic – FOXTEL and wholesale subscribers – 2002 - 2011
Table 57 – Historic – FOXTEL and wholesale subscribers by annual change – 2003 - 2011
Table 58 – Historic – FOXTEL subscriber annual churn rate – 2002 - 2011
Table 59 – Historic – FOXTEL subscribers by type – 2008 - 2011
Table 60 – Historic – FOXTEL subscribers by type – 2012
Table 61 – FOXTEL key financial performance snapshot – H1 2012 - H1 2013
Table 62 – FOXTEL key financial performance indicators snapshot – 2012 - 2013
Table 63 – Historical – FOXTEL key financial performance indicators – 2008 - 2012
Table 64 – Historical – FOXTEL yearly and monthly ARPU – 2003 - 2012
Table 65 – AUSTAR key operating and financial figures – 2009 - 2012
Table 66 – FOXTEL on-demand pricing – 2011 - 2013
Table 67 – TPG revenue and annual change – 2001 - 2013
Table 68 – TPG – key financial indicators – 2007 - 2013
Table 69 – TPG – opex versus capex – 2007 - 2013
Table 70 – TPG – revenue breakdown by market segment – 2010 - 2013
Table 71 – TPG – revenue breakdown by division – 2009 – 2013
Table 72 – TPG – revenue breakdown by division – 2009 – 2013
Table 73 – TPG – broadband ARPU – 2009 - 2013
Table 74 – TPG – broadband subscribers on/off-net and bundled – 2008 - 2013
Table 75 – Historic - TPG on-net versus Soul off-net home phone subscribers & annual change – 2009 - 2012
Table 76 – Historic - TPG versus Soul mobile subscribers and annual change – 2008 - 2012

Chart 1 – Overview of total telecoms market – retail revenue by service – 2005 - 2014
Chart 2 – Overview of wholesale market revenues by major supplier – 2005 - 2014
Chart 3 – Overview of total mobile services market revenue and annual change – 2005 - 2014
Chart 4 – Overview of mobile market revenue per major operator – 2005 - 2014
Chart 5 – Overview of annual change of mobile market revenue per major operator – 2005 - 2014
Chart 6 – Overview of blended monthly ARPU by MNO – 2005 - 2014
Chart 7 – Overview of broadband access revenues by major provider – 2005 - 2013
Chart 8 – Overview of annual change in broadband access revenues by major provider – 2006 - 2013
Chart 9 – Overview of Amcom revenue – 2000 - 2013
Chart 10 – Overview of Amcom – key financial indicators – 2010 - 2013
Chart 11 – Overview of Amcom – revenue by service division – 2009 - 2012
Chart 12 – Overview of iiNet revenue and annual change – 2004 - 2013
Chart 13 – Overview of iiNet key financial statistics – 2004 - 2013
Chart 14 – Overview of iiNet monthly ARPU by service – 2009 - 2013
Chart 15 – Overview of iiNet internet subscribers by type – 2007 - 2013
Chart 16 – Overview of iiNet voice subscribers by type – 2007 - 2013
Chart 17 – Overview of Macquarie key performance financial indicators – 2008 - 2013
Chart 18 – Overview of Macquarie annual revenue by division – 2004 - 2013
Chart 19 – Overview of long term M2 share price trending – 2007 - 2013
Chart 20 – Overview of M2 share price trending – 2012 - 2013
Chart 21 – Overview of M2 revenue makeup and annual change – 2007 - 2012
Chart 22 – Overview of M2 key financial performance indicators – 2007 - 2013
Chart 23 – Historical overview of FOXTEL iQ DVR subscribers and annual change – 2006 - 2012
Chart 24 – Historical overview of FOXTEL HD package subscribers and annual change – 2008 -2013
Chart 25 – Overview of FOXTEL financial performance indicators – 2012 - 2013
Chart 26 – Historical overview of FOXTEL revenue and annual change – 2003 - 2012
Chart 27 – TPG revenue and annual change – 2007 – 2013
Chart 28 – Overview of TPG key financial indicators – 2007 - 2013
Chart 29 – TPG – revenue breakdown by division – 2009 – 2013
Chart 30 – Overview of TPG on-net versus off-net broadband subscribers – 2007 - 2013

Exhibit 1 - Ultra-HDTV 4K ‘standard’ for satellite TV
Exhibit 2 – Amcom Telecommunications Limited (Amcom) at a glance
Exhibit 3 – Amcom – overview of products and services by division
Exhibit 4 – Subsidiary companies
Exhibit 5 – iiNet Limited (iiNet) at a glance
Exhibit 6 – TransACT Communications Pty Ltd (TransACT) at a glance – 2011
Exhibit 7 – Network FttK coverage
Exhibit 8 – Broadband ISPs over TransACT network
Exhibit 9 – TransACT brief company history
Exhibit 10 – Internode Pty Limited (Internode) at a glance – 2012
Exhibit 11 – Internode brief company history
Exhibit 12 – Macquarie Telecom (Macquarie) at a glance
Exhibit 13 – Macquarie Telecom data network PoPs
Exhibit 14 – M2 Telecommunications Group Limited (M2) at a glance – 2013
Exhibit 15 – M2 services and target market by brand – 2013
Exhibit 16 – Primus Telecommunications Australia at a glance – 2011
Exhibit 17 – Primus brief company history
Exhibit 18 – FOXTEL at a glance – 2013
Exhibit 19 – AUSTAR brief company history – 1994 - 2012
Exhibit 20 – Nextgen Networks Pty Limited (Nextgen Group Holdings) at a glance – 2013
Exhibit 21 – An overview of the blackspots program rollout
Exhibit 22 – The Regional Backbone Blackspots Program – completed rollout figures – 2011
Exhibit 23 – Nextgen network distances and construction dates

The 2nd Tier Market

Developments in this market have been dominated by industry consolidation, a process that is set to continue over coming years. Moving towards a structurally separated regulatory environment with a NBN at the horizon, size really does matter.

The other important development has been Telstra’s aggressive activities to increase its market share, particularly in the mobile and broadband sectors. This has been detrimental to a number of 2nd tier players, as has been reflected in their declining revenue in 2013. Nevertheless, there was an overall recovery in total revenue among these players in 2013, reflecting the benefits of scale brought about by market consolidation. Overal revenue for these operators, of about $3.9 billion, still accounts for less than 10% of the total telecoms market in Australia.

The NBN, and in particular the structural separation between infrastructure and services, is going to change the telecoms industry beyond recognition. Gone will be the days of regulatory gaming. A completely new industry structure will require collaboration and cooperation, rather than the destructive adversarial environment of the past.

However, before that open market is established, Telstra will still dominate the current market structure, and with its NBN bounty has deep pockets to invest in new opportunities. Another question is whether the design of the NBN will lead to true wholesale competition; or will it restrict this to a handful of players who can afford to build their presence in the 121 points of interconnect? This could well prove to be a critical strategic mistake.
The ACCC who approved this has already indicated that this will be one of the main areas it will be monitoring. The unique construction that offers backhaul competition could indeed be the facilitator in obtaining the competitive outcome needed to ensure that a dynamic system is developed which will lead to innovation.

Industry collaboration will also be needed to limit the necessity for more regulation. In a dynamic environment time is money and there is no longer room for year-long regulatory processes. Trust needs to be built up to facilitate much speedier dispute resolution, preferably preventing these disputes from arising in the first place. Some early indications are that NBN Co is willing to sit down and make changes where it makes sense to create a better wholesale and retail environment for all involved.

Data in this report is the latest available at the time of preparation and may not be for the current year.

- AAPT (bought by TPG)
- Amcom Telecommunications Limited
- Foxtel
- M2 Telecommunications
- Macquarie Telecom
- Nextgen Networks (Nextgen Group)
- TPG Telecom Limited
- iiNet Limited

Note: Product cover images may vary from those shown

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