As we remarked last week, pricing pressure is evident all over the telco industry. Pre-COVID-19, we noted rising pressure on mobile ARPUs due to competition and increased consumer interest in cheaper plans. We forecast that COVID-19 would exacerbate these pressures, and this has been validated by Vocus’, Optus’ and Telstra’s results this week.
For Optus, postpaid ARPU declined likely due to the increased mix of SIM-only plans and data price competition, while prepaid handset ARPU likely declined
due to increasing competitive intensity in the lower priced value segment. Vocus saw consumer revenues decline across broadband (-3%), voice (-50%) and
mobile (-2%). Voice now contributes only 2% of Vocus’ consumer retail revenues. Energy was the only consumer segment to show a growth (+2%).
wireless is emerging as a major point of industry focus. Optus already offers 5G fixed wireless service cheaper than its NBN plans. Vocus may now also
resell 5G fixed wireless service after Optus’ recent announcement that it will offer wholesale 5G fixed wireless. Our 2020 surveys found significant interest
in 5G fixed wireless broadband amongst both consumers and small businesses. For our full take on the Optus and Vocus results, click the link to our report.