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Australia's Mobile Phone Use to Exceed 100% in 3 Years, Predicts IDC

  • 30 May, 2005 12:40

<p>NORTH SYDNEY, May 30th, 2005 – Australia's cellular penetration for the first time last year surpassed "natural saturation," signifying that every Australian who could be using a mobile phone is already using one, according to IDC’s latest research into the local mobile market.</p>
<p>The study, titled "No Strings Attached: Australian Cellular Forecast and Analysis, 2004-2009," also finds that 100% penetration in this country will be achieved before the end of 2008. That outlook puts us well in the footsteps of other more mature Western European countries, such as Italy, Sweden and the United Kingdom, where mobile phone use already exceeded the 100% mark.</p>
<p>"By exceeding 'natural saturation,' the industry is entering a new phase of competition characterised by market maturity, forcing carriers to reposition and further differentiate themselves," commented, Warren Chaisatien, Mobile &amp; Wireless Research Manager for IDC Australia.</p>
<p>The 3G launches by the nation's three largest wireless network operators this year will reinvigorate and renew interest not seen since the transition from analogue to digital mobile communications more than a decade ago.</p>
<p>Given the continued commoditisation of voice services, it is clear that mobile operators will increasingly focus on the higher-value, greater-margin non-voice segment. In the consumer market, that strategy will be played out through 3G contents and other innovative applications, while in the business market, the push on enterprise mobility will intensify.</p>
<p>IDCs Study finds that:</p>
<p>* The number of Australian mobile phone users will grow by 7.4% to 19.2 million in 2005, with service revenue growing at a slightly faster rate of 8.4% to A$8.7 billion.</p>
<p>* Growth in the next five years will be primarily coming from 3G users, who will constitute a mere 5% of Australia’s mobile user base this year but are expected to make up one in three of all mobile phone users in 2009.</p>
<p>* Non-voice revenue contribution will rise significantly from 18% of carrier revenues this year to 29% in 2009. Non-voice revenues are poised to exceed A$2 billion after 2006, when 3G services become commonplace.</p>
<p>* Major factors driving future industry growth include the multiple-SIM phenomenon and increased substitution of landline traffic by mobiles, and in the longer term, fixed-to-mobile convergence.</p>
<p>Despite the rosy 3G market outlook, Mr. Chaisatien warned that mobile carriers must not ignore the importance of 2G/2.5G networks especially in light of the fact that capped pricing will continue to lead to surging traffic on these networks. Carriers must also have a proper migration strategy, moving existing 2G/2.5G users to the new 3G platforms in phases.</p>
<p>In addition to an updated five-year projection of the Australian cellular market, this IDC study provides a review of major market developments and actual market data for 2004, an analysis of industry dynamics, future technology and commercial trends, and service provider strategies, as well as essential guidance for carriers and their partners.</p>
<p>For press enquiries please contact:
Warren Chaisatien
Research Manager, Wireless &amp; Mobility
Phone: 61 2 9925 2256</p>
<p>IDC is holding a What's in Store for Wireless? The Future of Australia's Mobile Market" Breakfast Briefing presented by Warren Chaisatien in June.</p>
<p>Date &amp; Venue
Melb - Wednesday 1st June, Stamford Plaza, 111 Little Collins St
Syd - Thursday 2nd June, The Westin Hotel 1 Martin Place
Price: $120 inc GST
Time: 7.30am - 9.15am</p>
<p>To register or for further information please go to: or contact Bree Charlton via email or phone 02 9925 2200.</p>
<p>Click here to view the press release online:</p>
<p>Click here to subscribe to IDC press releases and newsletters online:</p>

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