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Mobile Operators At Each Other's Throats, Says IDC

  • 11 July, 2007 12:55

<p>NORTH SYDNEY, July 11th, 2007 – IDC's latest research recapping the Australian mobile market shows 2006, was an intensely competitive year with mobile operators sparing little in pursuing aggressive customer acquisition activity.</p>
<p>"In 2006, the Australian mobile landscape experienced heightened competition amidst much change and flux in regulation and strategic shifts by the mobile carriers."</p>
<p>"In light of these developments, expectations are for the market to experience continued hyper-competitiveness and price warring, and an enduring emphasis on migrationary and acquisitionary tactics," said Jerson Yau, IDC Australia, Wireless and Mobility Analyst.</p>
<p>IDC’s study, titled "Competitive Analysis of Australia Mobile Service Providers, 2007: Who's Who in the Zoo" is the fourth edition of IDC’s annual guide to Australia's A$9.3 billion-a-year mobile services industry. The analysis provides a recap of industry and market developments, profiles of leading Australian mobile services providers and the future outlook for the coming year.</p>
<p>The IDC study revealed that:</p>
<p># The mobile market continues to be a highly-volatile and competitive market, but one which continues to see strong uptake. 2006 saw robust growth with the mobile subscriber base reaching 20.42 million, or 98.4% penetration of the Australian population. Mobile service revenue almost topped A$9.3 billion.</p>
<p># Telstra, the incumbent and the largest mobile carrier in Australia continued to maintain its dominance in the market, with the launch of its NEXT G network marking a watershed in its performance. Optus continues to be the key challenger to Telstra's dominance, benefiting from its substantial pool of resources, skills, and funds. Meanwhile, Vodafone's strong performance continues to be underpinned by its unwavering global brand equity, especially within the consumer and pre-paid youth market segments. Hutchison's improving financial performance is expected to flow into developing its mobile network, which is the most limited in terms of coverage.</p>
<p># The Mobile Virtual Network Operator (MVNO) market experienced a setback in 2006, with both their subscribers and service revenues depleting considerably. The absence of 3G offerings in particular had an especially negative impact on the MVNO segment.</p>
<p># IDC expects the mobile market in 2007, to be characterised by excessive competition and price-warring. As the Australian mobile market reaches a new crossroads in terms of technology developments (3G/3.5G) and the advent of more innovative and exciting services, there is an escalating need for mobile operators to adopt more proactive strategies in order to be one step ahead of the competition. Agility and swiftness to bring to market new and differentiated services will be hallmarks of a strong contender.</p>
<p>If you would like further information about this press release please contact: Belinda Johnson, IDC’s Marketing Director on ph: 02-9925 2236 or email: bjohnson@idc.com or to purchase IDC research, please contact Gary Clarke, IDC’s Associate VP of Sales via ph 02- 9925 2226 or email.</p>
<p>IDC research:
http://www.idc.com.au/research/document.asp?document_id=AU202101P</p>
<p>****************************************************************</p>
<p>For press enquiries please contact:
Jerson Yau
Research Analyst, Wireless &amp; Mobility
Phone: 61 2 9925 2205
Email: jyau@idc.com</p>
<p>****************************************************************</p>
<p>Click here to view the press release online:
http://www.idc.com.au/press/release.asp?release_id=290</p>
<p>Click here to subscribe to IDC press releases and newsletters online:
http://www.idc.com.au/newsletters/register/</p>
<p>****************************************************************</p>

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