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8145.0 - Telecommunication Services, Australia, 1996-97  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 15/01/1999   
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ABOUT THIS PUBLICATION
The 1996–97 Telecommunication Services Industry Survey was conducted to provide a statistical benchmark to allow policy makers and researchers to assess the impact of the deregulation of the industry, which took place on 1 July 1997.

The ABS welcomes comments and suggestions from users recommending industries and data items for inclusion in future service industries surveys. These comments should be addressed to:

The Director, Service Industries Surveys, ABS, PO Box 10, Belconnen, ACT, 2616.


INTRODUCTION
This publication presents final results of a survey of the telecommunication services industry in respect of the 1996–97 financial year. These statistics update and extend the results previously released in Telecommunication Services, Australia, Preliminary, 1996–97 (Cat. no. 8148.0) which was issued in August 1998.

THE INDUSTRY
At the end of June 1997 there were 411 businesses operating in the telecommunication services industry. The industry comprised:

  • 3 carriers;
  • 306 Internet Service Providers (ISPs) (including non-employing businesses); and
  • 102 other service providers.

    Other service providers mainly provided services such as on-selling basic carrier services, network services, etc.

    Of the 411 businesses in the industry, 319 (78%) commenced operations in the industry prior to July 1996.



EMPLOYMENT
The industry employed a total of 79,654 persons at end of June 1997. Employment declined by 10,335 persons between 30 June 1996 and 30 June 1997.

INCOME AND EXPENSES
In the year ended 30 June 1997, the telecommunication services industry generated $20,927.2 million in income. About half of this ($10,471.9 million) was earned through the provision of 'basic and specialised' services (comprised of local, long-distance and international calls, specialised voice services and video conferencing services).

Mobile services generated $3,854.4 million (18% of total income) and a further $2,513.2 million was earned through the provision of data services and other telecommunication services.

Total expenses for the industry for the year ended 30 June 1997 were $19,458.2 million.

PERFORMANCE
The 411 businesses in the industry generated total income per person employed of $262,700 and recorded labour costs per employee of $62,600. The industry had assets at 30 June 1997 totalling $35,635.4 million and liabilities totalling $22,230.5 million, giving a net worth of $13,404.9 million.

The total industry operating profit before tax (OPBT) was $1,472.8 million and the operating profit margin was 7.1%. Both these figures have been revised from preliminary figures published in 1998.

The Industry Gross Product (IGP) (essentially the value of outputs minus the cost of inputs) was $12,234.4 million. This figure has been revised upwards since the release of preliminary results.



KEY AGGREGATES, TELECOMMUNICATION SERVICES INDUSTRY

Carriers
Internet Service Providers
Service providers (including Agents/Dealers)
Total
      Businesses at end of June 1997
      Commenced operations in telecommunication industry before July 1996 (no.)
3
224
92
319
      Commenced operations in telecommunication industry during 1996-97 (no.)
-
82
10
92
      Total (no.)
3
306
102
411
      Employment at end June 1996 (no.)
83,310
1,058
5,622
89,989
      Employment at end June 1997(a)
      Full-time (no.)
69,217
1,355
5,444
76,016
      Part-time (no.)
2,120
291
1,228
3,639
      Total (no.)
71,337
1,646
6 672
79,654
      Income
      Income from telecommunication services
      Basic and specialised services ($m)(b)
9,365.7
-
1,106.2
10,471.9
      Mobile services ($m)
3,401.4
-
453.1
3,854.4
      Internet services ($m)
30.5
151.2
1.7
183.5
      Data services and other telecommunication services ($m)
2,315.2
1.3
196.6
2,513.2
      Total ($m)
15,112.8
152.6
1,757.7
17,023.0
      Commission income ($m)
-
-
76.2
76.3
      Income from rebates/incentives ($m)
-
-
57.5
57.5
      Rent, leasing and hiring income ($m)
2,260.2
0.2
88.8
2,349.3
      Other income ($m)
1,179.0
7.6
234.5
1,421.1
      Total ($m)
18,552.0
160.4
2 214.7
20,927.2
      Expenses
      Labour costs ($m)(c)
4,684.5
40.3
253.8
4,978.6
      Depreciation and amortisation ($m)
2,752.4
9.8
113.1
2,875.3
      Interest ($m)
700.9
2.6
10.5
713.9
      Other expenses ($m)
8,484.0
140.1
2,266.4
10,890.4
      Total ($m)
16,621.7
192.8
2,643.7
19,458.2
      Operating profit/loss before tax ($m)
1,934.9
-32.4
-429.7
1,472.8
      Operating profit margin (%)
10.5
-20.7
-19.7
7.1
      Industry gross product ($m)
12,263.7
20.3
-49.6
12,234.4
(a) Employment data excludes some staff not predominantly engaged in the telecommunication services industry. Where full-time/part-time employment split is unavailable, figures have been incorporated in full-time data.

(b) Includes income from local, domestic long-distance and international calls, telephone cards, teleconferencing/video conferencing services, and specialised voice services.

(c) Includes staff training expenses and provision for termination/redundancy payments.


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