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Australia's mobile service revenue is poised to increase from 2023 to 2028, with a compound annual growth rate (CAGR) of 4.5%, driven by the steady growth in mobile data service revenues.

The recent Australia Mobile Broadband Forecast (Q4 2023) predicts that throughout the forecast period, the growth in mobile data service revenue will even out the decline in mobile voice service revenue.

A Noticeable Shift

This shift can be attributed to changing consumer behavior, driven by the widespread adoption of smartphones and high-speed mobile internet. With consumers increasingly relying on data-intensive applications such as video streaming and social media, there is a surge in demand for mobile data services, which in turn boosts revenue in this segment. Telecom operators have also implemented innovative data monetization strategies and leveraged advancements in mobile network technologies, such as the deployment of 5G networks, to capitalize on this growing demand and enhance the efficiency of mobile data services.

Conversely, traditional voice services like voice calls and SMS have experienced a gradual decline due to the emergence of alternative communication channels such as instant messaging apps and VoIP. As a result, revenue from these legacy services diminishes over time. However, the robust growth in mobile data services compensates for this decline, reflecting a broader trend towards the dominance of data-centric communication and the increasing significance of mobile broadband in the digital economy.

As customer preferences shift towards Over-The-Top (OTT) communication platforms, it is expected that revenue from mobile voice services will decrease at a 1.6% CAGR from 2023 to 2028. On the other hand, the revenue generated by mobile data is expected to increase with a CAGR of 5.7%.

Scaling 5G Network Infrastructure

“The average monthly mobile data usage in Australia is expected to increase from 14.4 GB in 2023 to 28.7 GB in 2028, driven by the growing consumption of online video and social media content over smartphones, thanks to data-centric offers extended by telcos with their 4G and 5G service plans,” said Sarwat Zeeshan, Telecom Analyst at GlobalData.

Moreover, the rise in 5G service adoption nationwide can be attributed to escalating consumer demand for high-speed internet connectivity. Major telecom operators like TPG Telecom are fueling this momentum by expanding their 5G network infrastructure. TPG Telecom, for instance, plans to deploy an additional 1,000 5G mobile sites annually until 2025, further augmenting the accessibility and coverage of 5G networks across the country.

As Australia’s digital consumption increases, the telecommunications industry is expected to grow significantly. Mobile data will play a vital role in generating revenue in transforming the country’s telecommunications industry, driven by the widespread implementation of high-speed 5G networks and changing customer demands.

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