Australia Consumer and SMB broadband Pricing Trends: broadband differentiation shifts to 5G \ New Zealand Telco Tracker: history and forecasts at a glance \ European mobile in Q2 2020: Sounding a more cautious note \ UK: EE ends relationship with Carphone Warehouse channel

 
 

 

 


 

 

 

Welcome to the Venture Insights newsletter!
In this week’s edition, we look at the following: 

 

  • Australia Consumer and SMB broadband Pricing Trends: broadband differentiation shifts to 5G
  • New Zealand Telco Tracker: history and forecasts at a glance
  • European mobile in Q2 2020: Sounding a more cautious note
  • UK: EE ends relationship with Carphone Warehouse channel

 

 

 

 

CHART OF THE WEEK

 

 

Australian NBN wholesale market shares – June 2020



 

 

Source: ACCC NBN wholesale market indicators report, June 2020

 

 

 

Australia Consumer and SMB Broadband Pricing Trends: broadband differentiation shifts to 5G

 

 

Australian fixed broadband retail subscriber market shares



 

 

Source: Venture Insights

 

 

This report analyses the competitive environment in the fixed broadband market, focussing on consumer price trends. In particular, we analyse the major RSPs – Telstra, Optus, TPG and Aussie Broadband to evaluate their broadband offerings in the retail market.
The product features of the broadband services being offered by different RSPs are increasingly converging as the RSPs migrate their customers to the same set of NBN wholesale products. This means that there is a clear minimum pricing floor for the retail prices that RSPs can charge the end consumers. Their margins and ARPUs are shrinking, and to further cut down the cost to consumers, some RSPs have been forced to make certain bundle inclusions optional.
Mobile telcos are looking at selectively offering 5G enabled fixed wireless products to counter some of the margin impact of the NBN. As a result, fixed wireless services are becoming an alternative, promising to deliver comparable service quality at similar or even lower prices. 
Click here to request our report.

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New Zealand Telco Tracker: history and forecasts at a glance

 

 

New Zealand telco revenue growth rates by segment



 

 

Source: Venture Insights

 

 

In our recently published annual review of the New Zealand market, we forecasted a negative-growth telecommunications market (2019-2023 retail CAGR -2.1%) over the next few years, with broadband growth offset by declines in mobile and fixed voice. We expect COVID-19 to have a positive impact on fixed broadband but a negative impact on mobile.
Now you can review our New Zealand industry forecasts at a glance on our New Zealand telco tracker. If you wish to receive the full report then make a request below. In the meantime, you can click the “View tracker” button below to access key industry trends and forecasts

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View NZ tracker
 

 

 

European mobile in Q2 2020: Sounding a more cautious note

 

 

Mobile service revenue growth by European market (%)



 

 

Source: Company reports, Enders analysis

 

 

Service revenue growth in the major European markets worsened by 3.5ppts this quarter, as a loss of roaming, prepay, and business revenues hit almost all operators. The UK was hardest hit as prepay and out-of-bundle usage was offloaded to Wi-Fi, and there was an accounting drag as a consequence of the ending of the relationship between O2 and Carphone Warehouse. Conversely, performance in the Italian market was almost flat as prepay usage was up and there was a degree of reprieve from competitive pressures from Iliad
Elsewhere, the French market was hard hit by the loss of inter-continental roaming as far back as February as China began to shut down but other fundamentals appear to be robust. In Germany, O2’s revenue trend was hardest hit but it maintained its strong net adds momentum. While the lockdown provided a break from ‘a very intense promotional environment’ in Spain, that intensity resumed as soon as lockdown lifted with particularly compelling converged bundle offers from Vodafone and Yoigo. Click here to request the report.

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UK mobile industry reshape continues: EE ends its relationship with Carphone Warehouse

 

 

Operator share of gross adds (quarter to June 2020)



 

 

Source: Enders Analysis, company reports

 

 

Mobile channel management strategy is evolving in the UK. EE has announced the ending of its relationship with CarphoneWarehouse, hot on the heels of a similar announcement from O2 a few months ago and the recent closure of Carphone Warehouse high-street stores.
Representing less than a third of the market gross adds, CarphoneWarehouse is going to struggle to be viewed as a true comparison distribution channel. Its future probably lies elsewhere.
But the closure of Carphone Warehouse stores, and now the diminished appeal of its website/off-high street stores, is positive for the operators. Click here to request this report.