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Decline in voice leads to ‘sluggish’ fixed communications growth in Australia

Decline in voice leads to ‘sluggish’ fixed communications growth in Australia

Market to grow by five-year CAGR of 0.7 per cent reaching US$10 billion in 2025.

Credit: iStock

Australia's fixed communications market is set for four years of “sluggish” growth as voice services are increasingly replaced by digital methods. 

According to analyst firm GlobalData, total fixed communications services revenue in Australia is expected to increase at a five-year compound annual growth rate (CAGR) of only 0.7 per cent, from US$9.9 billion in 2020 to US$10.2 billion in 2025. 

Although growth in fixed broadband segment remains strong, fixed voice service revenue is expected to decline at a CAGR of 5.5 per cent over the next five years as customers ditch fixed-line phones. 

According to the firm, Telstra will continue to lead the fixed voice market through 2025, supported by its strong foothold in both circuit-switched — or analogue — and voice-over Internet protocol (VoIP) services segments. 

Meanwhile, fixed broadband revenue is expected to grow at a CAGR of 4.5 per cent over 2020-2025, supported by growth in fibre-to-the-home (FTTH) and fixed wireless subscriptions. 

Telstra also stands to gain in that respect, according to GlobalData, as its fixed-broadband segment is supported by its strong fibre network coverage and promotional multi-play plans. 

“Fibre lines [are] expected to remain the dominant fixed broadband technology through 2025, supported by the rising demand for high-speed internet services and the government's focus on aggressive fibre to the x (FTTx) network expansions nationwide under the National Broadband Network (NBN) project,” said Aasif Iqbal, telecom analyst at GlobalData. 

Iqbal added that Telstra’s fixed-broadband footprint was “supported by its strong fibre network coverage and promotional multi-play plans”.  


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