TELECOMMUNICATIONS PARTS AND EQUIPMENT
Australia
Overview
DATA TABLE (Millions US$)
| x | 2004 | 2005 | 2006 (Estimated) |
| Total Market Size | 4818 | 5200 | 5418 |
| Total Local Production | 2568 | 2868 | 2568 |
| Total Exports | 540 | 620 | 600 |
| Total Imports | 2790 | 2990 | 3100 |
| Imports from the U.S. | 600 | 720 | 780 |
Exchange rates:
2004 0.74
2005 0.75
2006 0.75
U.S. exports of telecommunications equipment to Australia represent about 20 percent of the total import market and have the potential to continue to grow beyond that share. Revenues in the telecommunications market grew by five percent in 2005.
Australia's telecommunications industry is well developed and mature. Telephone lines are connected to 96 percent of all Australian households, and total telecommunications revenue for 2006 is estimated at US$27 billion. In 2000, the federal government removed Telstra’s monopoly for carrying local calls, with the unbundling of the local loop. Deregulation has resulted in expansion to more than 40 licensed carriers (from the initial two), offering a range of telecommunications services, including long-distance and local telephony, broadband, wireless, and satellite services.
The market has seen significant consolidation in the local telecommunications market over the past two years. In more recent times, the federal government has released some of its major ownership control of the company by selling about nine percent of its existing 51 percent share.
In broad terms the Australian telecommunications market can be categorized by:
- falling fixed line voice revenues,
- mild increase in mobile/cell revenues – voice revenues are declining, however, the increase is being realized by mobile carriers offering higher value data services,
- robust growth in Internet and IP solutions
Telecommunications products are segmented into customer premises equipment (CPE), such as telephone handsets, and network equipment and infrastructure. Customer premises equipment is defined as products attached to the network at the customer end, and includes not only telephones, small business systems and PABXs, but also any piece of equipment attached to the network. U.S.-made CPE equipment will not be permitted in Australia without modification to comply with regulations set down by the Australian Communications Authority (ACA).
Best Products/Services
The biggest driver of the telecommunications market at present is the Internet/data market that grew in 2005 by 30 percent. Good opportunities exist for U.S. vendors of related hardware. The VoIP market is also expanding rapidly. Other key niche segments include the mobile market and, more importantly, Internet networks. XDSL technologies were launched to the public in August 2000, and a range of other services, including satellite and cable are also being offered to provide broadband access to the Internet.
The introduction of the CDMA mobile networks in 1998 represented good opportunities for U.S. suppliers of telephony equipment such as Motorola and Qualcomm. In 2003 3G networks were opened by Hutchison. By Christmas 2005, there were approximately 800,000 3G customers (Hutchison 700,000 customers), Vodafone (50,000), Optus (25,000) and Telstra (25,000). Telstra has recently gone live with its new 3G network (3GSM 850 MHz) which was built in conjunction with Ericsson. It is feared that Telstra will turn off its CDMA network which would severely reduce the business opportunities for U.S. vendors of CDMA related technologies.
All carriers, including Telstra, continue to develop and upgrade existing networks. About US$2.5 billion are expended each year to maintain the existing networks. These carriers usually undertake network infrastructure purchases on an "invitation only" basis to selective international telecommunications suppliers, which must also be prepared to include some aspect of local industry development. Nonetheless, U.S. exporters of network infrastructure products should certainly consider presenting their products to the carriers.
U.S. products, including advanced network equipment like ATM switches, call processing and managing equipment, modems, and routers, are competitive in Australia. Growth areas include wireless technologies, satellite hardware, fiber optics, and communications and applications software.
Opportunities
Opportunities for U.S. vendors exist in providing equipment for the following areas:
- Broadband – wireless and fixed. There are approximately 3,500,000 broadband subscribers in Australia and the number of users switching from dial-up to broadband accounts is set to grow strongly over the next few years. Over the last year, the DSL market grew by about 200 percent.
- VoIP. Still in its infancy in Australia, VoIP will become a viable option to fixed line in the corporate market.
- Satellite broadband solutions.
Resources
Trade Show:
CeBIT Australia, 2007
Date: May 1-3, 2007
Location: Sydney Convention & Exhibition Center
The U.S. Commercial Service is organizing a U.S. Pavilion in CeBIT Australia 2006 to provide a cost-effective platform for American companies to introduce their products and technology to a trade audience. Both those companies who are new to the Australian market and those with established distributor relationships are encouraged to participate. Please see Chapter 9 “Trade Events” or our website (http://www.buyusa.gov/australia/en/cebit.html) for more details.
Publications:
CommsWorld: http://www.Commsworld.com.au
Exchange: http://www.exchange.com.au
Information Superhighways: http://www.budde.com.au
Associations/Government Agencies:
The Australian Competition and Consumer Commission: http://www.accc.gov.au
- The Australian Competition and Consumer Commission (ACCC) is the local body with the charter for ensuring compliance with the Trade Practices Act and the Telecommunications Act. The ACCC is similar in function and role to the U.S. Federal Trade Commission in that it deals with anti-competitive and unfair market practices, mergers and acquisitions and third-party access to facilities of national interest. Additionally, the ACCC is responsible for general consumer protection and competition regulation as it applies to the Trade Practices Act.
Australian Communications Authority: http://www.aca.gov.au
- The Australian Communications Authority is the chief regulator of the Telecommunications and Radiocommunications Act.
Australian Telecommunications Users Group: http://www.atug.org.au
- ATUG is a not-for-profit membership-based organization of Australian telecommunications users; and has been working for better choice, value and services in the sector since 1981.
Australian Mobile Telecommunications Association: http://www.amta.org.au
- AMTA is the national industry body representing the mobile telecommunications
industry in Australia.
Australian Information Industry Association: http://www.aiia.com.au
- The AIIA is the industry association acting for the local IT industry.
Internet Industry Association of Australia: http://www.iia.net.au
- Australia's national industry body for Internet commerce, content and connectivity.
U.S. companies seeking information on the Australian telecommunications market are encouraged to contact Duncan Archibald at the U.S. Commercial Service in Sydney
(email: duncan.archibald@mail.doc.gov )