Australia’s Aussie Broadband has unveiled its new “Look to 28” strategy as part of its investor day, with the company outlining its bold vision for growth and diversification over the next three years.
Aussie Broadband has outlined an ambitious growth target which will see the company strive for revenue growth of 35% over the next three years to A$1.6bn ($1bn). Aussie Broadband has outlined its strategic priorities, which include growing the business across all segments and countries, enhancing customer experience, expanding its fibre infrastructure while developing systems for scalable growth while focusing on security.
In addition, the company will be further introducing a six-pillar technology plan that will focus on emphasising security, transformation, innovation, and delivering through service excellence. While this announcement from Aussie Broadband is aggressive, the company should expect to experience some headwinds with the Australian telecommunications market remaining hyper-competitive and further consolidation on the horizon for the business, enterprise, and government segments in the near-term.
NBN has boosted Aussie Broadband
The introduction of the National Broadband Network (NBN) into the Australian market has bolstered the company from a rural Australian internet service provider to a formidable player in the country’s telecommunications landscape.
The company’s financial trajectory has been impressive, experiencing strong revenue growth of 51% CAGR over the last four years, predominately due to its strong growth within its residential segment and with its recent acquisitions of Over the Wire, a connectivity and managed service provider, and Symbio Networks, an IP Voice communication services company, have bolstered the company’s capabilities.
A key aspect of Aussie Broadband’s strategic ambition is to change its revenue mix, reducing its reliance on the residential segment and to grow other areas of the business. The company will look to increase its market share in the business, enterprise, and government segments, where the company will combine these markets into one segment as it looks to increase efficiencies across its delivery, operations, and customer management teams while simplifying its product portfolio with sector crossover.
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By GlobalDataThe carrier will also look to target all industry verticals across small businesses, while in the enterprise market focuses on retail, financial services, construction, and healthcare verticals in addition to local and government agencies.
Telecomms transformation and mareket consolidation
The Australian telecommunications landscape, particularly in the business and enterprise segment, continues to transform and evolve, contributed by technological advancements, the rise of cloud services and commoditisation of connectivity all contributing to the market consolidating to become a more service-centric ecosystem.
The Australian business and enterprise telco market continues to consolidate with Vocus receiving the green light from Australia’s Competition and Consumer Commission (ACCC) to acquire TPG Telecom’s fixed and fibre networks assets along with its business, enterprise, and government customer base.
Growth expectations
Brendan Swan, Senior Research Analyst, GlobalData said, “GlobalData expects that the Australian market will continue to grow even with consolidation in the market, with connectivity expected to grow 4.9% over the next 3 years”.
“Aussie Broadband could attempt to grow its market share at the expense of TPG Telecom targeting the carrier’s customer base, by potentially leveraging the uncertainty of the imminent merger, though the carrier will more than likely try to capture more of Telstra’s price-sensitive customers, focusing on its strong customer service and automation-led service delivery,” said Swan.
“With most businesses seeing connectivity as just a commodity, Aussie Broadband should look beyond its core connectivity portfolio and strengthen services capabilities in the areas of security, cloud and managed services to meet the changing demands of enterprise customers”, Swan added.
