Australian Telco Stats-3 Mobile Broadband Only

1
Mobile Broadband (Some good news but not for
the NBN.)
2
Mobile Broadband Most Important Service
Features? A.K.A I just want it to work.
Broadband Most Important Service Features?

• Speed and reliability are more important than
  price or choosing a known brand.
• Mobile broadband bundles with 70GB are now
  available with pricing from 79.90 per month
• So What ?
• Mobile broadband is now a practical alternative
  to fixed plans, for many. It can be faster and
  more reliable (depends on plan, coverage and
  device.)

Below Q What Is The Most Important Mobile
Broadband Feature To You?
These are the fundamentals of the service. People
just want it to work.
Proportion of Respondents
It appears people consider mobile broadband to be
a utility. This bodes well for MVNOs.
3
People Just Want FairUnsurprisingly, people
felt they should not be charged for moving
If You Move House, Should You Be Charged A Fee To
Reconnect Your Broadband Service
9. Analysis

• More than three quarters of respondents would NOT
  expect to be charged a fee to reconnect their
  broadband service if they moved house.
• So what ?
• Mobile broadband users do not pay a reconnection
  fee, they can move their connection anywhere they
  want.
• But, what else where they going to say ? People
  expect service fees to be fair only some
  telco fees are not.

Below Q Should You Be Charged A Fee To
Reconnect Your Broadband Service
Proportion of Respondents
What else where they going to say ?
4
Mobile Broadband is a source of high margin Gas
( Gross Adds new customers ) for Tier 1s.
Chart Proportion of Data Plans Chosen On
WhatPhone of size 25GB
9. Analysis
Below Proportion of Mobile Broadband Interest
For Plans 25GB

• Larger data bundles are becoming a significant
  component of data plan sales.
• These customers offer additional Gas (new
  connections) with a high ARPU.
• Mobile broadband requires no set up or moving
  costs. i.e. theyre fairer.

Proportion of Data Plans Larger Than 25GB
Source WhatPhone Site Statistics
5
1 ) Speed Mobile Broadband Is Capable Of Up to
100 Mbps
9. Analysis

• So how do mobile broadband and NBN fixed
  broadband compare on the service factors which
  are most important to people ?
• Mobile broadband can faster than the NBN.
• The NBN offers three speeds and only the fastest
  comes close to this.
• Both the NBN and Mobile Broadband struggle to hit
  theoretical maximums.
• ( Just because, in a single test, I got 100 Mbps
  doesnt mean everyone will. )

Below Speed A Real Mobile Broadband Download
Speed Optus Network
Mobile broadband was faster than the highest NBN
speed in the test we performed 100 Mbps.
Source http//beta.speedtest.net/result/65945583
20
6
2) Reliability The NBN is Not Seen As
ReliableThe NBN is experiencing Significant
Complaint Numbers As The Rollout Scales
9. Analysis
Below Complaints to the TIO

• Cardinal numbers are bound to go up as the NBN
  rollout approaches the half-way point.
• But 10-20 of people experiencing problems with
  the install is a significant problem,
• First It makes the news, causing concern.
• Second, its an especially significant problem
  when it can be worked around with alternatives
  such as Mobile Broadband.

Complaints to the TIO are rising. This could be a
result of the NBN is not seen as reliable.
"Unfortunately there are about 10 to 20 per cent
of people that do not have the kind of experience
we want them to have," - Bill Morrow CEO NBN
Complaints to the TIO
Source TIO Website
7
Price Indicative Mobile Broadband Price per
GB May Be Cheaper Than Fixed in 2 Years.
If You Move House, Should You Be Charged A Fee To
Reconnect Your Broadband Service
Below Comparing Mobile and Fixed Broadband
Products Cost Per GB

• This chart is indicative.
• Optus OVO / Amaysim and others now offer data
  bundles gt 25GB in size. Some are 140GB big.

If mobile broadband data inclusions keep doubling
at the same price each year, mobile could be
cheaper than fixed for an average user as soon as
2019.
GB / 100
8
Indicative Mobile Broadband Price per GB may be
cheaper than fixed in as little as 2 years from
now
GB / 100
9
What Unlimited Plans Should Be The most common
request for a phone plan inclusion ? Unlimited
data. Source Deloitte
Analysis
Source Deloitte Global Mobile Consumer Survey
July 2016
Q What Phone Plan Feature Would You Like To See
?
The most common thing Australians want in their
phone plan is Unlimited Data
Could TPG launch this ?
Proporiton of Respondents
10
There is a significant profitability incentive
driving Tier 1 telcos towards selling Mobile
rather than Fixed Broadband.
If You Move House, Should You Be Charged A Fee To
Reconnect Your Broadband Service
9. Analysis

• Prior to the NBN, Telstra wholesale rates for
  fixed broadband were 18 per month.
• Under the NBN, these costs will rise to 52 per
  month.
• Tier 1 operators already own their mobile
  networks.
• Even allocating a cost per GB for marginal
  network usage, its more profitable for them to
  sell mobile broadband than NBN fixed.
• Sources
• NBN ARPU in 2021 and previous wholesale cost
  http//www.afr.com/brand/chanticleer/nbn-reveals-u
  gly-truth-of-profit-margin-destruction-in-telco-la
  nd-20170831-gy899c
• Retail price shown is IINet 25 Mbps NBN plan
  Unlimited https//www.canstarblue.com.au/phone-i
  nternet/internet/broadband/compare-australias-top-
  nbn-plans/
• Mobile Broadband costs are estimated and
  indicative.

Telco Profits For Mobile Broadband
Telco Profits Under Old and New Fixed Broadband
Wholesales Agreements
Mobile broadband is more appealing to Tier 1
telcos than the NBN
Less profit
More profit
More profit than NBN fixed
Even allocating an incremental cost to marginal
mobile network usage, mobile broadband is more
profitable.
Tier 1 Telco Margins are much smaller when
reselling NBN Fixed Broadband