5G set to rejuvenate Australian mobile services market

1 in 4 mobile users willing to pay more for 5G

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SYDNEY, AUSTRALIA – With more than 15 million 5G handset services in operation (SIOs) expected by the end of June 2023, the adoption of 5G is set to be faster than the previous generations, according to new research from emerging technology analyst firm, Telsyte.

The Telsyte Australian Mobile Services Market Study 2019 found the local market is forecast to reach 15 million 5G handsets between 6 to 12 months sooner than when the market shifted from 3G to 4G technologies.

The Australian mobile services market grew by around half a million new SIOs in the six months to December 2018, reaching 35.4 million at the end of December 2018.

Telstra and MVNOs were the top two for SIO net growth, driven by IoT and competitive handset plans, respectively.

Telsyte research shows more than 70 per cent of handset SIOs (including prepaid, post-paid BYO M2M and post-paid BYO contract) are now BYO, up from around 64 per cent in 2015.

“The prolonging smartphone replacement cycle and attractive pricing have been driving the BYO market,” Lee says.

Telsyte expects the BYO market will continue to grow steadily in Australia; however, handset contract plans will benefit most initially from the arrival of 5G as there will be more 5G handsets priced above $1,000 in the next 18 months.

 

Faster 5G to help curtail revenue decline

The availability of 5G handsets and networks is set to be faster than previous generations, with consumer expected to respond.

The smartphone market is ripe for upgrades with survey data showing a quarter of consumers are holding off buying a new smartphone until 5G becomes available.

Unlike 4G, 5G handsets are already available from the outset.

The first 4G handset in Australia (HTC Velocity 4G) was released 3 months after Telstra officially launched 4G.

“Australia is at the very beginning of 5G, but when 5G becomes the standard, consumers won’t be able to look back” says Telsyte Senior Analyst, Alvin Lee.

Telsyte also anticipates widespread network availability to be quicker for 5G than it was for 4G with Optus and Vodafone moving faster with their roll outs than with 4G.

According to Telsyte’s mobile services research, the total services revenue (measured half-yearly) has been in decline since December 2017, mainly due to price-driven competition, giving carriers added incentive to try and arrest declines.

Telsyte research shows 5G has the potential to halt declining revenues. In a positive sign for carriers, some 1 in 4 Australian mobile users are willing to pay more for a 5G service compared to their existing service. Among those willing to pay more for 5G, the average is between $5 and $10 a month.

The arrival of 5G is also expected to drive business investment, especially with the potential of next generation IoT applications. Telsyte forecasts enterprise 5G opportunities driven by application development, IT services, platforms and connectivity could reach around $45 billion per annum by the mid-2020s.

The share of total 5G spending on network connectivity is expected to increase from around 1 per cent in 2020 to nearly 15 per cent by the mid-2020s as more devices and services connect to the 5G networks.

For further information on the study or media enquiries contact:

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

The Telsyte Australian Mobile Services Market Study 2019 is a comprehensive study which provides subscribers with:

  • Market sizing and forecasts of the Australian mobile services market

  • Analysis of market share and carrier performance

  • End-user trends

  • Market trends

  • Mobile services market KPIs

In preparing this study, Telsyte used:

  • An online survey conducted during November and December 2018 with a representative sample of 1,025 respondents, 16 years and older.

  • Interviews conducted with executives from mobile service providers, device manufacturers, and channel partners.

  • Financial reports released by service providers.

  • On-going monitoring of local and global market and vendor trends.

About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.




5G becoming crucial for future business applications

Australian Enterprise 5G market to generate $45 billion by the mid-2020s

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The enterprise 5G market in Australia is forecast to generate around $45 billion per annum by the mid-2020s, consisting of next generation application development, IT services, platforms and connectivity, according new research from Australian emerging technology analyst firm, Telsyte

The Telsyte Australian Enterprise IoT & 5G Study 2019 shows more than two thirds (68%) of IT and business leaders already see 5G as crucial for their business strategy going forward. Half of these respondents indicating 5G was critical for future application development, as well as supporting existing applications.

Future applications are expected to make use of the huge data transfer capability, more reliable connectivity and lower latency, which will have the ability to change software architectures, allowing for real-time services and cloud based AI architectures.

The top three barriers to 5G investment cited were integration with current systems (34%), a lack of business case (23%) and security concerns (17%).

Lack of skills is also an issue with more than 25 per cent of respondents indicating they will be looking for an outsourced partner for developing 5G applications.

Enterprise IoT Maturity on the rise

Nearly half of businesses surveyed expect five times or greater connected devices as today within their organisations within five years’ time. This explosion in devices is fuelling innovation and experimentation with “The Internet of Things” (IoT).

 

Telsyte’s latest Australian Enterprise IoT maturity model shows that 32 per cent of organisations now have a strategic approach to IoT, of which around half have pilot programs running or already have IoT in operations

Among companies that currently do not have a formal IoT strategy, almost 1 in 3 large organisations (200+ employee) plan to adopt an IoT strategy within 12 months.

The biggest barriers are lack of a business case (26%), IoT seen as too expensive (25%) and a lack of skills and expertise (20%). Among those that have overcome the barriers, early signs show that IoT is having a big impact on their businesses.

IoT applications promise big ROI

Enterprise IoT has a diverse range of applications, with the main areas businesses believe IoT will be used in being maintenance (32%), manufacturing (31%) and sales (30%).

Nearly a third (32%) of large firms are also reporting IoT to be suitable for customer service applications.

Of the third of existing businesses that have measured the Return on Investment (ROI) of IoT, 65 per cent claim it increased revenues; half saw an increase in productivity; and, similarly, half realised "better customer satisfaction or advocacy". This closely aligns to the early adopters of IoT which have been in the transport, logistics or asset heavy industries.

Operational cost savings was reported by 39 per cent of organisations, of which around 80 per cent saw nearly a one-third reduction in costs, either through efficiency gains or better management of assets.

Cohesive strategy imperative amid ‘shadow’ IoT

Like its close namesake “shadow IT”, or the spending on IT by non-IT groups in business, enterprises are now facing a wave of “shadow IoT”, where diverse teams are experimenting with connected devices, often unsanctioned or experimental in their nature.

Telsyte research found, one in four companies have IoT capable devices, but no formal strategy around them.

Telsyte research shows that while this approach is growing it does not come without challenges.

A high 81 per cent of companies with shadow IoT are experiencing "stalled" projects.

Other issues such as inconsistent technology selection, poor fit for purpose and higher costs are also experienced by organisations experiencing shadow IoT.

Telsyte Managing Director, Foad Fadaghi, says businesses that are just tinkering with IoT devices are hitting a wall.

"Critical to the success of implementing IoT strategies seems to be taking a scalable and holistic approach, with security considered upfront," Fadaghi says.

The study found more than half of the survey respondents believed that around a quarter of their IoT devices might be connected via cellular technology within 3 years’ time. Around a quarter of organisations believe up to 50 percent could be connected via mobile networks.

For further information on the study or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

The Telsyte Australian Enterprise IoT & 5G Study 2019 is a comprehensive study which provides subscribers with:

  • Maturity levels, marketing sizing and insights into emerging trends in IoT and 5G

  • Enterprise IoT & 5G trends across enterprise applications, return on investment, cyber security, and 5G outsourcing

  • Australian organisations IT trends and strategies

  • Strategic analysis of market trends and challenges

In preparing this study, Telsyte used:

  • An online survey of 271 IT decision makers across Australian organisations with greater than 20 employees.

  • The respondent was required to have a strong understanding of their organisation’s IT purchasing and strategy, but was not limited to the CIO or IT department

  • Sampling was conducted on a size of spend weighting basis, with 60% of respondents coming from organisations with greater than 200 employees

  • Public information released by service providers, vendors and platforms.

  • On-going monitoring of local and global market and vendor trends

About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.


Beyond disruption: New Zealand organisations race to digital transformation success

Telsyte has published our latest digital enterprise research study for New Zealand.

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Commissioned by DXC.technology, the study provides a comprehensive view on the state of digital disruption and transformation across New Zealand organisations and the wider economy  - the key themes covered in the study include:

  • The impact of digital disruption on New Zealand organisations

  • The approach to digital transformation and non-IT business unit technology spending

  • How the CEO is becoming critical to digital transformation success

  • The role of AI in New Zealand workplaces

  • Factors affecting transformation failure

  • How cloud, 5G, IoT and customer experience technologies drive digital agendas

 

For further information, please see the following press release by DXC Technology:
https://www.dxc.technology/au/press_releases/146680-dxc_technology_study_finds_new_zealand_businesses_have_less_than_two_years_to_adopt_digital_before_disruption_hits


The full report can be downloaded at:
https://www.dxc.technology/nz/flxwd/146673-beyond_disruption

 

For further information on the study or media enquiries please contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

 

 About Telsyte
Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

Australian IoT@Home market cracks $1bn, paving the way for IoT-Commerce services

Australian households forecast to have more than 37 connected devices by 2023

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SYDNEY, AUSTRALIA – The Australian IoT (Internet of Things) at home (IoT@Home) market grew 57 per cent during the past 12 months to $1.1 billion in 2018 and is forecast to reach $5.3 Billion by 2023, according to new research from Australian emerging technology analyst firm, Telsyte.

 The Telsyte Australian IoT@Home Market Study 2019, now in its seventh edition has found more than five million Australian households (more than 50 per cent of total households) have started the smart home journey with at least one IoT@Home product installed by the end of 2018.

 The increase of more than 30 per cent – from around 4 million households in 2017 – was primarily due to surging adoption of smart speakers.

 Amongst the five million IoT@Home adopters, Telsyte research finds around a quarter are considered “invested” in smart home technology, with at least five different IoT@Home products already installed in the home (e.g. cameras, smart plugs, smart lighting and smart appliances).

 This figure is set to grow even further with Telsyte predicting the average household in 2023 will have 37 devices, around half being IoT@Home devices.  At the end of 2018, the average Australian household had 17 connected devices, primarily made up of smartphones, computers, tablets and other gadgets.

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 These “invested” IoT@Home adopters are more likely to be younger families and tech enthusiasts who have a range of consumer devices, such as drones, VR headsets, and location tracking tags.

 Telsyte’s research shows rising energy costs has been driving adoption of smart energy solutions and government’s investment in renewable energy and subsidies for smart batteries are expected to boost the IoT@Home smart energy segment in the medium term.

 The smart energy segment is now worth over one-third of the total IoT@Home market by revenue.

 Smart connected appliances (e.g. whitegoods) are expected to be the longer term IoT@Home market revenue driver beyond 2020, making up around 40 per cent of the industry’s annual revenue by 2023.

 Telsyte Managing Director, Foad Fadaghi, says there is a growing demand for smarter homes.

 “Nearly a third of Australians are interested in modernising their current residence to make it smarter,” Fadaghi says.

 Among people looking to spend to make their home smarter, more than 40 per cent of their budget is set to be spent on improving energy efficiency or making the home safer.

 More devices calling for more services

 While DIY IoT@Home solutions have been gaining popularity, there are new opportunities for professional installers and services providers.

 The market is ready for professional services with Telsyte research showing 45 per cent of Australians value an installer’s advice, and one in three households will require professional assistance to setup smart devices or appliances.

 Support services will be most important for sophisticated devices such as smart intercoms and smart locks and other smart sensor-based products such as smart water taps.

 In fact, one in three Australians are interested in monthly subscription IoT@Home services such as home security monitoring and energy monitoring and optimisation services.

 Surge in smart speakers drives market growth

 Australia’s IoT@Home market continued to benefit from surging smart speaker adoption and Telsyte forecasts the smart speaker category will continue to be the most successful IoT@Home product throughout 2019 with 2.5 million (26%) Australian households using smart speakers by end of the year, up from 1.6 million (16%) in 2018.

 There is also a growing number of people interested in smart speaker applications. Some one in four IoT@Home adopters and potential adopters are interested in controlling IoT@Home and other connected devices, such as controlling lights and unlocking doors using smart speakers.

 ‘Getting everyday info’ overtook playing music as the most frequently used daily smart speaker application in 2018.

 While concerns remain around privacy and security, Telsyte’s research shows there is a growing acceptance of smart speakers having access to different applications, devices and data sources, particularly amongst entertainment-related apps and security cameras.

 Google remained the leader in the smart speaker market in 2018 with over 70 per cent of the main smart speakers sold being the Google Home series. Telsyte forecasts Google and Amazon smart “assistant” speakers will continue to be the top two sellers during 2019.

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 Homes getting ready for nbn™ and 5G connectivity

 Smart homes need speedy connectivity and Australia is entering a new era of nbn™ and 5G wireless broadband services.

 Telsyte’s latest consumer research shows nbn is the most important IoT@Home related feature when Australians move into a new home, when either renting or buying.

 Ample built-in power plugs around the house to charge more connected devices as well as fixed network connections in rooms are seen as important.

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Telsyte forecasts more IoT@Home devices such as smart security cameras that are 5G-capable will be offered as part of an IoT@Home subscription service.

 Despite concerns around increasing usage of AI, Telsyte research shows close to half of people are open to the idea of having a more automated approach, including utilising AI, for home security. For example, being alerted to trespassing or unusual activities around the home based on facial recognition.

 Smarter homes open new world of commerce

 A new paradigm for digital commerce that is coming which is set to have as much impact as eCommerce and mCommerce before it. 

 Telsyte defines this as IoT-Commerce which encapsulates purchases enabled or facilitated by smart appliances (e.g. smart fridges) and other IoT@Home products such as smart speakers. While its early days, Telsyte predicts IoT-Commerce will become mainstream within 10 years’ time.

 Telsyte’s latest digital consumer study found “convenience” is overtaking price as the number one factor for purchasing goods online instead of in-store. The natural extension of this is for sellers to look at technologies that can generate greater convenience than current eCommerce experiences and IoT@Home technology is a key enabler.

According to Telsyte’s research, close to half a million Australian households have subscribed to recurring delivery services during 2018, including services such as weekly meal delivery services or pet product delivery services, paving the way for more automated buying systems.

 “IoT-Commerce is set to provide a more seamless and hassle-free experience when shopping for everyday household items, automating the process and freeing up time for Australians,” Fadaghi says.

 However, Telsyte recognises key challenges exist with IoT-Commerce, including resistance from existing channels and supply chains, as well as technical challenges in getting fragmented systems to work together.

 Telsyte predicts by 2040, at least a quarter of appliances will have built-in sensors and partnerships to facilitate IoT-Commerce in countries like the USA, UK, Australia and New Zealand.

 By 2040, Telsyte forecasts the IoT-Commerce market could be worth more than $100 Billion in Australia, or equivalent to around 20 per cent of consumer retail trade by then.

 While there are similar privacy and data security concerns for IoT-Commerce compared to overall IoT@Home adoption, Telsyte research found saving money in the long term and the potential for free appliances in exchange for longer term service agreements (e.g. a free fridge for a multi-year minimum spend grocery provision agreement) might help the market grow.

IoT@Home segments covered:

IoT-Commerce segments covered:

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 For further information on the study or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

 The Telsyte Australian IoT@Home Market Study 2019 is a comprehensive study which provides subscribers with:

  • Market sizing and forecasts of the Australian IoT@Home market by detailed segments including services and installation revenues

  • Insights into consumer attitudes and technology adoption trends

  • Analysis of vendor strategies and key growth segments

  • IoT@Home user profiles, including adopters, those on the verge of adopting and those not yet to be interested.

  • Analysis of the IoT@Home ecosystems

  • Analysis of retail and online channels and their importance to IoT@Home products

  • Insights into where consumers begin with IoT@Home journey and key market drivers expected to drive rapid adoption in different segments.

  • Analysis of market potential for IoT-Commerce, enabled by IoT@Home products, voice and AI

 In preparing this study, Telsyte used:

  • Telsyte’s annual Smart Home survey conducted during November and December 2018 with a representative sample of 1,025 respondents, 16 years and older.

  • Interviews conducted with executives from service providers, network operators, manufacturers, retailers, financial analysts and channel partners.

  • Financial reports released by service providers and manufacturers.

  • On-going monitoring of local and global market and vendor trends.

  • Analyst reviews of leading smartphone and wearable devices.

 About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

 The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

 

Beyond disruption: Australian organisations race to digital transformation success

Telsyte has published our latest digital enterprise research study.

 

Commissioned by DXC.technology, and built on over a decade of researching the impact of emerging technologies in Australia  - the key themes covered in the study include:

 

  • How organisations are approaching digital transformation in Australia

  • How the CEO is becoming critical to digital transformation success

  • Impact of AI on jobs and the workplace

  • The growing focus on the customer in digital transformation

  • Measuring benefits of digital transformation

  • Factors affecting transformation failure

  • How 5G, IoT, cloud and customer experience technologies drive digital agendas

 

For further information, please see the following press release by DXC Technology:
https://www.dxc.technology/au/press_releases/146589-dxc_technology_study_finds_35_000_new_technology_jobs_will_be_needed_to_meet_the_growth_of_digital_transformation_in_australia


The full report can be downloaded at:
https://www.dxc.technology/au/flxwd/146560-beyond_disruption

 

For further information on the study or media enquiries please contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

 

 About Telsyte
Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.