1. Telecommunications market
Briefing notes and sales support
for news media sales teams

2. What’s in this deck?
This deck is split into two sections: Section 1 An overview of the Australian telecommunications market (mobile and ISPs) The 2015 Media i Industry Survey asked agencies “what are the most important factors when dealing with media owners”. The most common factor (52% agreed ) was “understanding of your client’s business and category”. Section 1 of this deck won’t make you an instant expert, but it will help get you up to speed on the most important facts about the category.
Section 2 Support slides for sales presentations Every great sales presentation is tailored for each client, but there are certain points that are consistently relevant to clients within a category. Section 2 contains research about brands, what consumers consider when selecting a provider, and the contribution news media makes in the decision process.

3. Section 1 Telecommunications market: an overview

4. Telecommunications industry: total revenue
Telecommunications services (voice + internet):
Estimated revenue $42.3 billion in
Two key revenue streams:
Fixed networks: 25% of revenue
Mobile services: 50% of revenue
Source: IbisWorld, Telecommunications Services in Australia, May 2016.

5. The future is mobile
In 2015 the number of smart phone owners exceeded the number of fixed line telephone users (those with access to a fixed line telephone connection at home).
31.8 million mobile services (voice + mobile internet)*.
* Many users have more than one service
Source: Australian Communications and Media Authority | Communications Report 2015.

6. Mobiles everywhere High penetration
94% of the population owns a mobile phone
72% own a smartphone
Mobiles the most-used device for going online
Mobiles 79%
Laptops 74%
Desktops 61%
Tablets 58%
Sources: emma, 12 months to April 2016;
Australian Communications and Media Authority | Communications Report 2015.

7. Explosion in data downloads
Five-fold increase in volume of data downloads since 2011, and increasing due to services such as SVOD (streaming video on demand)
35% of US internet traffic due to Netflix
Most data (92%) still downloaded on fixed-line (ADSL or cable).
NBN expanding fixed-line telephone and internet infrastructure; scheduled for completion in 2020.
Source: Australian Communications and Media Authority | Communications Report ;
“SVOD: Netflix surge threatens free-to-air TV”, Mark Day, The Australian, 13 July 2015; nbn Annual Report

8. Mobile: three key players
Telstra dominates, and growing.
+664,000 new customers FY15 (total: 16.7m).
Investing $5bn in mobile network ( ).
Optus increasing competitive offering.
Expanding mobile network.
Mobile network: 98.5% coverage.
Added 6th satellite to network Sept-14.
Mobile revenue +3% YOY.
Vodafone signs of improvement.
Customer growth in 2014 (total: 5.3m) after three years of decline.
Mobile network: 96% coverage.
Not profitable yet (-$286m loss Jan-Dec 2014).
Share of mobile services
Rank
Company
2014
2015
Change (% pts)  1
Telstra
52.8%
53.9%
+1.1  2
Optus
30.3%
29.5%
-0.8  3
Vodafone
16.8%
16.5%
-0.3
Source: Australian Communications and Media Authority | Communications Report ;
Telstra Annual Report 2015, Singtel Annual Report 2015,

9. Internet: four key players
69 ISPs (internet service providers) in June-15.
10 with 100,000+ subscribers, 20 with 10,000+ .
Telstra dominant, but competitors closing gap.
Optus: growth due to increased localised marketing and broadband bundles.
TPG: strong organic growth (subscribers: +9.8%), and purchase of iiNet in 2015 lifted it to #2 position.
Total fixed internet subscribers
Rank
Company
2014
2015
Change (%) 1
Telstra
4,970
5,122
+3.1% 2
TPG*
748
1,810
+6.6%** 3
Optus
1,014
1,049
+3.5% 4
M2 Group***
482
530
+10.0%
* TPG: includes TPG, iiNet and Internode
** Change calculated on TPG & iiNet combined
***M2: includes Dodo and iPrimus
Source: Australian Communications and Media Authority | Communications Report ; Singtel Annual Report 2015

10. Telco advertisers: under-represented in newspapers
Telcos: 4th largest advertising category ($250m)
Telstra $71m, Optus $36m, Vodafone $18m
Telcos big spenders on TV:
Telstra $51.3m (5th), Optus $31.9m (15th)
Light spenders in newspapers
Only Telstra in the top 50 advertisers: $8.9m (26th).
Source: Ebiquity, 2014 Advertisers Report

11. Section 2 Support slides for sales presentations

12. About these slides
The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive sales for mobile and internet services, and to show how news media can help to influence the sales process.
These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and should be adapted to suit your particular presentation requirements.
Recap client/agency brief
Telecommunication industry support slides
Client specific analysis
Recommendations

13. Mobile phone users: numerous and happy
16.9 million mobile phone owners (incl. smartphones and non-internet capable mobile phones). Most users (69%) are satisfied with their current mobile carrier, but…
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

14. Users need more data than ever
Consumers are downloading massive amounts of data. Five times more data than four years ago.
Source: Australian Communications and Media Authority | Communications Report ,.

15. Three brands dominate the mobile & ISP markets…
Telstra, Optus and Vodafone are the three largest mobile providers.
Telstra, Optus and TPG (including iiNet) major ISPs.
Which brands do switchers consider?
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.
Bases: Any main mobile provider/ any main ISP

16. It’s still an active market
1.5 million customers plan to change their mobile service provider in the next 12 months.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

17. Switchers: large brands have the edge
Big brands have higher consideration for mobiles and for ISPs, but
Most switchers consider more than one brand.
Users choose different brands for different reasons.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016;
Base: Any brand considered

18. Different brands, different appeals
Dodo benefits from factors such as “offers competitive pricing” and “good value for money”, Optus is more reliant on “offers a wide range of plans” and “reliable service”. Where do switchers get this information?
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

19. News media excels at reaching telco switchers
1.5 million
people intend to change
their mobile provider
in the next year.
1.4 million
of them read news media
each month.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

20. Digital news media excels
People who read news media on digital devices are 12% more likely to switch mobile providers in the next 12 months compared to non-readers.
72% of
consumers
spend over 2
hours/day on
their mobiles.
75% research purchases on
mobiles.
Sources: emma ™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016;
Deloitte Media Consumer Survey 2015 – Australian media and digital preferences – 4th ed.

21. Technology sections deliver superior efficiency
Technology section readers are 34% more likely to switch telcos in the next year than non-readers.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016.

22. The combined reach of print and digital news media:
In print and digital
77%
75%
The combined reach of print and digital news media:
93%
of telco switchers.
Print Digital
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016; Nielsen DRM April 2016, People 14+ only.

23. Newspapers are a key source of information
1 out of 5 switchers (17%) turn to newspapers when deciding on a telecommunications provider.
In contrast only 15% turn to social media, 14% to magazines, 10% to radio, and 7% to out-of-home ads.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending April 2016;
Base: any media most useful

24. Client specific analysis & recommendations
This is the point to bridge to a client specific discussion.
Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to
Analyses that address the client’s specific situation, challenges and opportunities.
Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.