Page 74 - SAMENA Trends - November 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

Australia Operators Face Increased Price Competition

Australia’s mobile market declined for the first time in a decade spending, accounting for 16 per cent of all services in operation
as the number of connections dipped and international roaming at end-June, 2 percentage points higher on an annual basis.
plummeted, with analyst company Telsyte expecting the sector to Weak outlook Telsyte forecast the number of mobile services
remain under pressure over the next two years. In the year to end- in operation to remain at similar levels over the next 12 months
June, mobile service revenue fell 4 per cent to AUD13 billion ($9.5 to 18 months, with further consolidation of services leading to
billion) due to the impact of Covid-19 (coronavirus) lockdown increased competition. It expects more market consolidation as
measures. Telsyte said Optus and TPG Telecom (which recently operators look to mergers for growth. Senior analyst Alvin Lee
merged with Vodafone Hutchison Australia) were impacted said consumers will be the big winners in the next 12 months,
the most, while market leader Telstra maintained its market as service providers battle it out with attractive offers. Telsyte
share due to its strong performance in the mobile IoT category. anticipates demand for 5G smartphones will take off in 2021
Connections stood at 36.2 million at end-June, 62,000 lower than as coverage increases and more affordable mid-range models
end-December 2019. Telsyte attributed the drop to a 5 per cent become available. Less than 15 per cent of smartphones sold
decline in prepaid subscriptions. The MVNO segment bucked the in the recent six month period were compatible, with fewer than
downward trend as consumers looked for deals to manage their 500,000 5G mobile subscribers.

Applications for Next Round of Mobile Black Spot Program Opened

With a view to ‘continuing to expand and improve mobile coverage across
regional and remote Australia’, the Australian government has announced that
Round 5A of its ‘Mobile Black Spot Program’ is now open for applications. In
confirming the development, the Department of Infrastructure, Transport,
Regional Development and Communications (DITRDC) noted that Round 5A will
be used to test a range of different program designs. Further, it noted that Round
5A includes a focus on three priority funding areas, specifically: high priority
natural disaster prone areas, including those affected or prone to bushfire; new
technology solutions in areas where low population densities have discouraged
applications under earlier rounds of the program; and major regional and remote
transport corridors. Funding of up to AUD34.5 million (USD25 million) for this
latest round will be drawn from unused funding from Round 5, while it has been
noted that Round 5A will help to inform the design of Round 6, funding for which
was committed in the government’s 2019/20 Budget. Mobile network operators
and infrastructure providers have until 16 December to register their interest in
taking part in this latest phase of the program. To date, more than 1,200 new
mobile base stations have been funded under the first five rounds of the Mobile
Black Spot Program, of which more than 880 are now live.

Australia Opens Latest Round of Rural Coverage Push

The government opened the next round giving consumers more choice to increase is critical for keeping people connected
of a mobile black spot coverage program competition. He said there will be a specific during times of emergency.” The
for applications, and released guidelines focus on improving mobile coverage along government will contribute up to AUD34.5
for the initiative aimed at improving major transport corridors and in disaster- million ($25.3 million) for round 5A, drawn
coverage across regional and remote prone regions. Findings from round 5A will from unused funding from the previous
areas. Mark Coulton, minister for Regional help to design the sixth round, funding for round. In April, the government awarded
Health, Regional Communications and which was committed in the fiscal 2019 to funding for 182 base stations to operators
Local Government, said during a Regional 2020 budget. Minister for Communications, as part of the fifth round. Since 2013, the
Australia Institute webinar round 5A Cyber Safety and the Arts Paul Fletcher government committed AUD380 million to
of the program aims to support new said the government continues to work the program, funding the rollout of 1,200
ways of delivering mobile services to with industry, state and local governments base stations.
locations which have traditionally been to improve connectivity. “Improving mobile
less economic for mobile operators, and coverage in natural disaster-prone areas

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