CommsDay Melbourne Congress 2016: Matt Healy

Off to the Market!CommsDay Melbourne

Presented by Matt Healy

Macquarie Telecom Group

2 The Shopping List

• Why the ACCC Market Review is such a good idea.

• What are the key areas for analysis and debate?

• Supermarkets

• Whats “mobile roaming” really about?

CommsDay Melb 2016


3 Why Market Study?

• ACC workload has been narrow and deep for last decade

• But user experience seems broad and shallow – bundling is king

• So is there a growing disconnect between regulators/regulated/end users?

• Time to bridge the gaps

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4 Why Market Study?

• Well “big picture” doesn’t look like a landscape,

• Eg Prices high, services still poor, consolidation rampant, choice diminished

• Is that what you would see in a vibrant, competitive market?

CommsDay Melb 2016


Is this the view out the window?


Or this!


7 Does this look like competition is working?Telstra remains the largest provider of many retail services:

fixed voice services, market share increased from 61% in June 2014 to 64%bas at June 2015;

fixed broadband services market, with a 41% as at June 2015; Telstra’s 4G network covers 94% of the total Australian population;

Telstra has maintained a market share advantage for handset services, with 45% share of mobile handset market, which represents a 5% increase since 2011, despite Telstra’s products being priced at a premium;

Telstra has a market share of 64 %for wireless broadband services, which represents an increase of 17% since 2011.

Source - ACCC Feb 2016CommsDay Melb 2016


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So where to put the spotlight?

• We can’t look at everything, must prioritise

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IP Interconnect - peering

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Impact of network convergence eg

• Fixed/mobile/wi-fi as Next generation networks

• “any to any” connectivity

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Whats the real story here?

• Consolidation

• Net neutrality and revenue streams

• Consumer view point

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13

Mobiles and Supermarkets

• Imagine if we funded Coles to open a store in a country town where presently there is only a small milkbar…

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14

Mobile market structure looked at from a geographic perspective

• Who has coverage and presence?

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15 Mobile Coverage and Roaming

“Telstra’s 4G network covers 94 per cent of the total Australian population, while Optus’ 4G network reaches 86 per cent. VHA advertises that its 4G services cover 96 per cent of the Australians living in metro areas, but does not advertise its 4G coverage outside of these metro centres”.

ACCC Feb 2016

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MVNO Network Coverage

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MelbourneBallarat

BuninyongArarat


26

Questioning statements in response to the Inquiry

• Why is mobile THAT important

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We wouldn’t fund Coles so why are we funding Telstra?


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"This announcement (of an ACCC Inquiry) means that we must now consider the implication of potential roaming regulation for our investment plans ... If [ACCC] proceeds with the declaration Telstra will have to let competitors' customers basically use Telstra's network, the network that you as shareholders have supported the investment in over many years," Mr Penn said.

………….and if some cities only have Telstra coverage this was "a function of decisions by the various different operators and competitors whether or not to invest in those areas“

• Telstra CEO, 20/09/16CommsDay Melb 2016


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Which equates to the statement:

• “we will look to invest when we have no regulation imposed and when the taxpayer funds the investment for us”.

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Thank you.

Technology

CommsDay Melbourne Congress 2016: Matt Healy