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Squeeze on Telstra mobile customer revenue Featured

Telstra is obviously still the dominant player in the Australian mobile market with continuing solid subscriber growth, but competition is increasingly putting the squeeze on the big telco’s mobile customer revenues.

The pressure on the mobile area is evident from the latest financials Telstra reported at an investor briefing in Sydney today, which revealed that the telco is getting, on average, less revenue per mobile customer than it previously did.

Indeed, the numbers show that for each year since 2012, Average Revenue Per User (ARPU) received by Telstra from its mobile customers has declined.

The financials show that for the 2012/2013 full year Telstra was receiving average revenue from each mobile user of $29.80, but that dropped to $29.59 for 2013/2014.  

And, there was a further decline in ARPU’s for the half year to the end of December (2014/2015) to $28.89.

All this against the backdrop of the last five years, when Telstra’s mobile business has underpinned the company’s retention of its dominant market position and overall success.

Looking ahead for the next five years, Telstra Mobile and Wireline executive director Warwick Bray told the investor briefing that the industry will see 5G standardised, networks optimised for traffic against specific services and media types, consumer devices will be dominant, but devices for data sensing and processing will make up a “significant percentage of mobile and Internet traffic”.

Bray also forecasts that Telecoms and other industries will be “more platform shaped”, with data becoming as important as products.

The world will be both faster and more connected, with a billon more participants in the global economy, according to Bray.

Bray says Telstra remains well positioned to achieve further growth in both the mobile and fixed-line space with ongoing investment in its networks and the introduction of “innovative solutions” to enhance customer experience.

Telstra also has a bit to say about what it sees as the emerging trends and opportunities, including:

•    Tablets and hybrid machines replacing traditional PCs and laptops

•    Smart home devices becoming smarter and easier to use

•    Consumers becoming increasingly savvy and expecting “outstanding” service

•    Technology blurring the liens between fixed and mobile as well as personal and work life

•    Network will remain important  but end-to-end experiences “will remain key”

On its performance, Telstra describes these latest results as encouraging and, moving forward, says it will pursue growth through network and product differentiation while continuing to improve customer advocacy.

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

 

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