Telstra and nbn Co FY20 update: increasing wireless and enterprise competition will drive price pressure

Report Overview

Telstra and nbn Co FY20 update: increasing wireless and enterprise competition will drive price pressure

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Telstra and nbn Co FY20 update: increasing wireless and enterprise competition will drive price pressure
Telstra’s and nbn Co’s FY20 results show the early impact of COVID-19, but also contain indications of underlying shifts in the industry. We expect rising competition for fixed broadband subscribers as the mobile network owners (MNOs) try to maximise returns from the 5G mobile investment by launching 5G fixed wireless. Telstra’s announcement it will roll out 5G fixed wireless will step up this rivalry.

Contents

Key Takeaways

Introduction

Nbn ARPU growth and 5G fixed wireless

  • NBN’s residential ARPU increases
  • 5G fixed wireless will affect MNO margins and nbn take-up, but not revenues

nbn enterprise growing at the expense of incumbents

Mobile prices will rise slowly – including wholesale

Sports streaming taking off

Our take – a declining market

List of charts/tables

Figure 1.  Percentage of plans by download speed (Mbps)

Figure 2. Average monthly data use per customer (GB)

Figure 3.  Corporate Data and IP market ($000)