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

Australia - Telco Company Profiles - 2nd Tier

  • ID: 1194718
  • October 2014
  • Region: Australia
  • 119 Pages
  • Paul Budde Communication Pty Ltd
Solid Performances Among Operators Auger Well For The Nbn Age

FEATURED COMPANIES

  • Amcom Telecommunications
  • FOXTEL
  • iiNet Limited
  • M2 Telecommunications
  • Macquarie Telecom
  • TPG Telecom
  • MORE

This report provides an overview of the main 2nd tier telcos in Australia, including key revenue an operational data as well an analysis on company strategies in response to market developments and an intensifying competitive environment.

The companies profiled in this report are Amcom Telecommunications, iiNet Limited, Macquarie Telecom, M2 Telecommunications, AAPT (acquired by TPG in early 2014 though operated as a separate business), Nextgen Networks (Nextgen Group), TPG Telecom and FOXTEL.

There is a separate report that covers: Telstra, Optus and Vodafone. For more information on this report please see link below.

Note: Product cover images may vary from those shown
Solid Performances Among Operators Auger Well For The Nbn Age

FEATURED COMPANIES

  • Amcom Telecommunications
  • FOXTEL
  • iiNet Limited
  • M2 Telecommunications
  • Macquarie Telecom
  • TPG Telecom
  • MORE

1. Telecoms Market Revenue Overview
1.1 Total telecommunications services market
1.1.1 Revenue, revenue growth and market share by major provider

2. AAPT
2.1 Company information
2.1.1 Overview
2.1.2 Company structure
2.1.3 Products and services
2.1.4 Customers
2.1.5 Competition
2.2 Company analysis
2.3 Network information
2.3.1 Transmission infrastructure
2.4 National Broadband Network
2.4.1 Network certified
2.4.2 Wholesale services
2.4.3 Trial sites
2.4.4 Sale of spectrum to NBN Co
2.5 Financial results
2.5.1 Financial results 2014
2.6 Company history
2.6.1 Brief timeline – 1990 - 2014

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 2014
3.3.2 Year 2013
3.3.3 Year 2012
3.3.4 Year 2011
3.3.5 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 AARNet collaboration
3.6.6 Subsidiary companies
3.7 Company history
3.7.1 Brief timeline – 1988 - 2014

4. Foxtel
4.1 Company information
4.1.1 Overview
4.2 Company analysis
4.3 Operational results
4.3.1 2014
4.3.2 2013
4.3.3 2012
4.3.4 2011
4.3.5 Subscriber statistics
4.3.6 Historic subscriber statistics
4.4 Financial results
4.4.1 FY 2014
4.4.2 FY 2013
4.4.3 FY 2012
4.4.4 FY 2011
4.4.5 Statistical financial overview
4.4.6 Historical statistical financial overview
4.5 Acquisitions, alliances and subsidiary companies
4.5.1 Acquisition of AUSTAR
4.5.2 Acquisition of Premium Movie Partnership (Showtime)
4.6 Products and services
4.6.1 Digital pay TV
4.6.2 Apps availability and the move to IPTV
4.6.3 FOXTEL further expanding IPTV availability
4.6.4 Presto
4.6.5 Optus resells 1Q HD
4.6.6 Triple-play services
4.6.7 Satellite services
4.6.8 Operating centres in Sydney and Melbourne
4.7 Company history
4.7.1 Brief timeline – 1994 - 2014

5. iiNet
5.1 Company information
5.1.1 Overview
5.1.2 Current issues
5.1.3 Change of leadership
5.2 Financial results
5.2.1 Year 2014
5.2.2 Year 2013
5.2.3 Year 2012
5.2.4 Year 2011
5.3 Operating results
5.3.1 Subscriber statistics
5.4 Company analysis
5.5 Network
5.5.1 Overview
5.5.2 DSLAM rollout
5.5.3 Dark fibre
5.5.4 Fibre-to-the-Premises (FttP)
5.5.5 iiNet’s plans for undersea network expansion taking shape
5.6 Acquisitions, alliances and subsidiary companies
5.6.1 Acquisition overview
5.6.2 Partnership with Polycom
5.6.3 Acquisition of ISP Westnet
5.6.4 Alliance with FOX Sports
5.6.5 Alliance with Hypernia
5.6.6 Alliance with Hybrid Television Services
5.6.7 Alliance with Hutchison
5.6.8 Amcom and PowerTel acquire stake in iiNet
5.6.9 Partnership with FetchTV
5.6.10 Acquisition of AAPT Consumer Division
5.6.11 Acquisition of Supernerd
5.6.12 Acquisition of TransACT
5.6.13 Acquisition of Internode
5.6.14 Acquisition of Adam Internet
5.6.15 Acquisition of Tech2
5.7 Products and services
5.7.1 Home and SOHO
5.7.2 Business
5.7.3 Reselling agreements
5.8 Company history
5.8.1 Brief timeline – 1993 - 2014

6. Macquarie Telecom
6.1 Company information
6.1.1 Overview
6.2 Financial results
6.2.1 FY 2014
6.2.2 FY 2013
6.2.3 FY 2012
6.2.4 FY 2011
6.2.5 Operating revenues and statistical overview
6.3 Company Analysis
6.3.1 Leader in managed business services
6.3.2 National Broadband Network (NBN)
6.4 Data network
6.4.1 Metro Access Network (MAN)
6.4.2 Mobile network
6.5 Services
6.5.1 Hosting solutions
6.5.2 Telco
6.5.3 Management tools
6.5.4 Data centres
6.5.5 Macquarie Telecom Enterprise Cloud
6.6 Company history
6.6.1 Brief timeline – 1992 - 2014

7. M2 Telecommunications
7.1 Company information
7.1.1 Overview
7.2 Company analysis
7.2.1 Growing the company
7.2.2 Arriving in the top ten
7.2.3 Planned restructure
7.3 Financial results
7.3.1 FY2014
7.3.2 FY2013
7.3.3 FY2012
7.3.4 FY2011
7.3.5 Financial statistics overview
7.4 Services
7.4.1 Fixed-line voice
7.4.2 Mobile
7.4.3 Internet
7.4.4 Energy
7.4.5 Brands
7.5 Products and services
7.5.1 Overview
7.5.2 M2 Consumer and Business (retail)
7.5.3 M2 Wholesale
7.5.4 NBN
7.6 Acquisitions, alliances and subsidiary companies
7.6.1 Acquisition overview
7.6.2 Acquisition Dodo – 2013
7.6.3 Acquisition Eftel – 2013
7.6.4 Acquisition Primus Telecommunications – 2012
7.6.5 Acquisition Time Group – 2012
7.6.6 Acquisition of Flextalk – 2012
7.6.7 Acquisition of AUSTAR Mobile – 2011
7.6.8 Acquisition of Clear Telecoms (M2 Clear) – 2011
7.6.9 Acquisition of Bell Networks – 2010
7.6.10 Acquisition of Clever Communications – 2010
7.6.11 Acquisition of People telecom – 2009
7.6.12 Acquisition of Commander assets – 2009
7.6.13 Acquisition of Unitel Australia – 2008
7.6.14 Acquisition of Orion Telecom – 2007
7.6.15 Acquisition of Tenex Communications – 2007
7.6.16 Acquisition of Wholesale Communications – 2007
7.7 Company history
7.7.1 Brief timeline – 1999 - 2014

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 ownership developments
8.2 NBN - Regional Backbone Blackspots Program (RBBP)
8.2.1 Background information
8.3 Network
8.3.1 Overview
8.3.2 International
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 - 2014

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
9.3.6 TPG and the NBN
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 2014
9.6.2 Year ending July 2013
9.6.3 Year ending July 2012
9.6.4 Year ending July 2011
9.6.5 Financial statistical overview
9.6.6 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 - 2014

10. Wholesale Aggregators

Table 1 – Historic - Total telecoms revenues by major providers – 2000 - 2004
Table 2 – Total telecoms revenues by major providers – 2005 - 2013
Table 3 – Total telecoms service market share by major providers – 2003 - 2013
Table 4 – AAPT revenues by service type – 2008 - 2013
Table 5 – AAPT revenue by service type (new style) – 2012 - 2014
Table 6 – AAPT EBITDA – 2011 - 2014
Table 7 – AAPT financial data H2 2014
Table 8 – AAPT operating expenses by type – 2008 - 2013
Table 9 – Amcom – operating revenue – 2000 - 2014
Table 10 – Amcom – key financial indicators – 2010 - 2014
Table 11 – Amcom – EPS – 2010 - 2014
Table 12 – Amcom revenue by service division – 2004 - 2013
Table 13 – Amcom revenue by service division – 2012 - 2014
Table 14 – Amcom’s acquisitions – 2001 - 2014
Table 15 – Total FOXTEL and wholesale subscribers – 2012 - 2014
Table 16 – FOXTEL and wholesale subscribers by annual change – 2012 - 2014
Table 17 – Subscriber annual churn rate – 2002 - 2014
Table 18 – Historic – FOXTEL and wholesale subscribers – 2002 - 2011
Table 19 – Historic – FOXTEL and wholesale subscribers by annual change – 2003 - 2011
Table 20 – Historic – FOXTEL subscribers by type – 2008 - 2011
Table 21 – FOXTEL financial indicators (US$) – 2012 - 2014
Table 22 – FOXTEL key financial indicators – 2012 - 2014
Table 23 – Historical – FOXTEL monthly ARPU – 2003 - 2014
Table 24 – AUSTAR key operating and financial figures – 2009 - 2012
Table 25 – FOXTEL on-demand pricing – 2011 - 2014
Table 26 – iiNet total revenue – 2004 - 2014
Table 27 – iiNet key financial statistics – 2007 - 2014
Table 28 – iiNet ARPU by service – 2008 - 2014
Table 29 – iiNet total revenue (historic) – 1997 - 2003
Table 30 – Historic - iiNet active subscribers – 1997 - 2004
Table 31 – iiNet active subscribers – 2005 - 2014
Table 32 – iiNet internet subscribers by type – 2007 - 2014
Table 33 – iiNet voice subscribers by type – 2007 - 2014
Table 34 – iiNet DSLAM exchanges – 2009; 2011 - 2012
Table 35 – iiNet’s acquisitions – 2003 - 2014
Table 36 – Internode ADSL2+ statistical overview – 2006 - 2012
Table 37 – iiNet business revenue – 2009 - 2014
Table 38 – Macquarie key financial indicators – 2008 - 2014
Table 39 – Macquarie EPS results – 2008 - 2014
Table 40 – Macquarie revenue by division – 2004 - 2014
Table 41 – Macquarie – annual change in revenue by division – 2005 - 2014
Table 42 – Macquarie – revenue contribution by division – 2004 - 2014
Table 43 – Macquarie – Telco division revenue – 2011 - 2014
Table 44 – M2 key financial parameters – 2013 - 2014
Table 45 – M2 revenue by segment– FY2014
Table 46 – M2 revenue by product – FY2014
Table 47 – M2 key financial parameters – 2012 - 2013
Table 48 – M2 revenue makeup and annual change – 2004 - 2014
Table 49 – M2 key financial performance indicators – 2004 - 2014
Table 50 – M2 key financial performance indicators – 2004 - 2014
Table 51 – M2 voice services performance indicators – 2013 - 2014
Table 52 – M2 mobile services performance indicators – 2013 - 2014
Table 53 – M2 internet services performance indicators – 2013 - 2014
Table 54 – M2 energy services performance indicators – 2013 - 2014
Table 55 – M2’s acquisitions – 2005 - 2013
Table 56 – TPG revenue and annual change – 2001 - 2014
Table 57 – TPG – key financial indicators – 2007 - 2014
Table 58 – TPG – opex versus capex – 2007 - 2014
Table 59 – TPG – revenue breakdown by market segment (consumer) – 2010 - 2014
Table 60 – TPG – revenue breakdown by division – 2009 – 2014
Table 61 – TPG – broadband ARPU – 2009 - 2014
Table 62 – TPG – broadband subscribers on/off-net and bundled – 2008 - 2014
Table 63 – TPG on-net versus Soul off-net home phone subscribers, annual change – 2009 - 2014
Table 64 – Historic - TPG versus Soul mobile subscribers – 2008 - 2014
Table 65 - The wholesale market in Australia - key players - 2014

Chart 1 – Overview of total telecoms service revenue by major providers – 2005 - 2013
Chart 2 – Overview of market share of telecoms revenue by major operator – 2013 - 2013
Chart 3 – Overview of AAPT income by service type – 2008 - 2013
Chart 4 – Overview of AAPT expense type – 2008 -2016
Chart 5 – Overview of Amcom revenue – 2000 - 2014
Chart 6 – Overview of Amcom – key financial indicators – 2010 - 2014
Chart 7 – Overview of Amcom – revenue by service division – 2009 - 2013
Chart 8 – Overview of FOXTEL financial indicators – 2012 - 2014
Chart 9 – Overview of iiNet revenue and annual change – 2004 - 2014
Chart 10 – Overview of iiNet key financial statistics – 2004 - 2014
Chart 11 – Overview of iiNet monthly ARPU by service – 2009 - 2014
Chart 12 – Overview of iiNet internet subscribers by type – 2007 - 2014
Chart 13 – Overview of iiNet voice subscribers by type – 2007 - 2014
Chart 14 – Overview of Macquarie key performance financial indicators – 2008 - 2014
Chart 15 – Overview of Macquarie annual revenue by division – 2004 - 2014
Chart 16 – Overview of M2 revenue makeup and annual change – 2007 - 2014
Chart 17 – TPG revenue and annual change – 2007 – 2014
Chart 18 – Overview of TPG key financial indicators – 2007 - 2014
Chart 19 – TPG – revenue breakdown by division – 2009 – 2014
Chart 20 – Overview of TPG on-net versus off-net broadband subscribers – 2007 - 2014

Exhibit 1 – AAPT at a glance
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 – FOXTEL at a glance
Exhibit 6 – AUSTAR brief company history – 1994 - 2012
Exhibit 7 – iiNet Limited (iiNet) at a glance
Exhibit 8 – TransACT Communications Pty Ltd (TransACT) at a glance – 2011
Exhibit 9 – Network FttK coverage
Exhibit 10 – Broadband ISPs over TransACT network
Exhibit 11 – TransACT brief company history
Exhibit 12 – Internode Pty Limited (Internode) at a glance – 2012
Exhibit 13 – Internode brief company history
Exhibit 14 – Macquarie Telecom (Macquarie) at a glance
Exhibit 15 – Macquarie Telecom data network PoPs
Exhibit 16 – M2 Telecommunications Group Limited (M2) at a glance
Exhibit 17 – M2 services and target market by brand
Exhibit 18 – Primus Telecommunications Australia at a glance
Exhibit 19 – Primus brief company history
Exhibit 20 – Nextgen Networks Pty Limited (Nextgen Group Holdings) at a glance
Exhibit 21 – An overview of the blackspots program rollout
Exhibit 22 – The Regional Backbone Blackspots Program – completed rollouts
Exhibit 23 – Nextgen network distances and construction dates

Note: Product cover images may vary from those shown
Solid Performances Among Operators Auger Well For The Nbn Age

FEATURED COMPANIES

  • Amcom Telecommunications
  • FOXTEL
  • iiNet Limited
  • M2 Telecommunications
  • Macquarie Telecom
  • TPG Telecom
  • MORE

Operators in this market reported steady revenue growth in fiscal 2014, reflecting an encouraging ongoing trend. The exception was AAPT, though this company has now been acquired by TPG and so a new era for the company may herald a change in its fortunes as it is able to utilise its assets in line with TPG’s wholesale services strategy. This acquisition showcased that in the market prepped for the NBN these players require size, geographic reach and a significant customer base among the lucrative government and business segments. This scale has enabled these 2nd tier players to weather aggressive competition from Telstra, which has itself firmed up its relationship with FOXTEL through a wholesale arrangement, enabling FOXTEL to provide broadband and voice services through Telstra’s infrastructure.

There are many transformations yet expected in the telecom sector in coming years as the market adjusts to the NBN. NBN Co, operating under a multi-technology platform rather than the FttP architecture originally envisaged, has shown a reinvigorated purpose in recent months which should see an escalation in the number of connected premises. Given these developments, many opportunities yet remain for the 2nd tier players, as TPG has shown with its commitment to fibre-enable up to half a million apartments within its existing footprint.
Amcom

Amcom provides a range of services bases on fibre and DSL infrastructure. It also offers training services to the consumer, corporate, wholesale, government and SME markets. The Western Australia-based company has solid prospects for future growth, and remains a well-managed and focused business. Amcom has constructed over 2,000km of high-speed fibre optic networks in Perth, Darwin, Alice Springs and Adelaide. It has seven data centres in its own right, while its network connects to 71 centres in the capital cities. The network provides access to around 80% of business premises in these cities. The company in mid-2014 announced plans to make acquisitions on the East Coast to further develop its Cisco-based platform. The company has shown consistent revenue growth in recent years, while its strategy for future growth appears promising.

AAPT

AAPT was acquired in 1999 by Telecom New Zealand as it made a $2 billion bid to break into the Australian market. The investment proved to be unsound for Telecom’s shareholders, and in recent years AATP’s financial performance has deteriorated. Its key retail division was sold to iiNet in 2010, while its remaining business and wholesale interests were sold TPG in early 2014. Though owned by TPG, AAPT remains a separate business and manages a substantial interstate network including 11,000km of fibre, its own data centres in major capital cities, fibre and Ethernet infrastructure. It is also a partner with NBN Co. The company has undergone significant management changes as it struggles to revitalise its financial position, which will help TPG better absorb the company’s assets and manage its strategic position in a fast-changing market.

iiNet

iiNet has developed into one of the largest DSL providers in Australia. The company delivers a wide range of telecom services including fixed-voice, mobile and broadband, business data housing and cloud-based services, VoIP and IPTV. The company manages a significant DSL and FttP network. During the last few years iiNet has expanded through a strategic program of acquisitions, which has consolidated its strengthening market position in the business broadband and mobile voice and data sectors. In March 2014 the founder of iiNet, Michael Malone, stepped down as both CEO and chairman of the company after more than twenty years at the helm. The company will enter a new phase of development with a new CEO. The company’s financials have been solid for a number of years, while growth at 7% for FY2014 enabled to company to broach $1 billion in revenue for the first time.

Macquarie Telecom

Established in 1992, Macquarie Telecom was one of the first telcos of the deregulated era. Its two key target markets are Australian mid-size corporates and the government sector. The Hosting business continues to be a key growth platform. With a third data centre operational in mid-2013, the company has bolstered its hosting and cloud-based services, which remain the main focus of its strategy for growth.

TPG Telecom

TPG Telecom provides a range of telecom services and also owns a cloud-hosting company and the PIPE network infrastructure. The company is delivering an extensive FttB service to apartment buildings in capital cities. In late 2014 these plans were approved by the AAAC, which determined that the FttB networks would not go against the level playing field provisions within the Telecommunications Act. TPG has also secured spectrum in the 2.5GHz band to bolster its wireless broadband capabilities, and has committed to investing in additional capacity with a subsea cable linking to New Zealand and the US West Coast. TPG’s capabilities and reach were enhanced following its $450 million acquisition of AAPT’s wholesale and business services from Telecom New Zealand, completed in February 2014.

Nextgen Networks

Nextgen specialises in data services for carriers, service providers, government and corporations. It owns and operates one of Australia’s largest national fibre networks, of over 19,000km of fibre rings, as well a data centres in all capital cities. Nextgen has rolled out around 6,000km of a fibre backhaul link to Darwin, which it manages on behalf of NBN Co as part of the Regional Backbone Blackspots Program. The Perth-Singapore submarine cable, being managed by Nextgen’s subsidiary ASC International, secured landing permits in early 2014, so enabling the operator to proceed with the construction phase.

FOXTEL

FOXTEL is the largest subscription TV (STV) provider in Australia, offering over 200 viewing channels. National coverage was secured in 2012 following the company’s acquisition of AUSTAR. Company ownership is equally divided between Telstra and News Corporation. More than 2.6 million homes had an STV service from FOXTEL in mid-2014, showing a 5.6% growth in subscriber numbers year-on-year. The company hopes to expand its services with a triple-play bundle of TV, broadband and telephony service during the first quarter of 2015, with the latter two services resulting from a wholesale agreement with Telstra.

M2 telecommunications

M2 has shown consistent growth since the mid-2000s, both through organic growth and strategic acquisitions. In 2009 it acquired People Telecom and the business assets of Commander Communications, both at bargain prices. In 2010 the company completed the acquisition of selected business assets of Clever Communications and Bell Networks, while in 2011 it purchased Clear Telecoms and later the subscribers and assets of AUSTAR Mobile from the pay TV satellite provider. In 2012 the assets of Primus Telecommunications were acquired adding further to its subscriber base. Further acquisitions in 2013 brought in Dodo and Eftel under the M2 umbrella. M2 has since declared that it may invest further in the energy sector, taking advantage of deregulated markets and the low customer acquisition cost advantages held by Dodo Energy.

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

Note: Product cover images may vary from those shown
Solid Performances Among Operators Auger Well For The Nbn Age

- AAPT (acquired by TPG in early 2014 though operated as a separate business)
- Amcom Telecommunications
- FOXTEL
- iiNet Limited
- M2 Telecommunications
- Macquarie Telecom
- Nextgen Networks (Nextgen Group)
- TPG Telecom

Note: Product cover images may vary from those shown
Note: Product cover images may vary from those shown

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