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8148.0 - Telecommunication Services, Australia, Preliminary, 1996-97  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 03/08/1998   
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SUMMARY OF FINDINGS

INTRODUCTION
This publication presents preliminary results of a survey of the telecommunication services industry in respect of the 1996-97 financial year. A final publication containing information on activity in the industry will be released in the next few months.

THE INDUSTRY
At the end of June 1997 there were 381 businesses operating in the telecommunication services industry. The industry comprised 3 carriers, 296 internet service providers, and 82 other service providers, which mainly provide telecommunication services such as onselling carrier services, network services etc.

In the year ended 30 June 1997, the telecommunication services industry generated $20,487.5  million in income. Of total income, $10,020.6  million (49%) was earned through the provision of voice services, $3,841.7  million (19%) was earned through the provision of mobile services and $2,475.6  million (12%) was earned through the provision of data and other telecommunication services.

Total expenses for the industry for the year ended 30 June 1997 were $18,934.3  million resulting in an operating profit before tax (OPBT) of $1,556.8  million The industry gross product (IGP) for the telecommunication services industry was $10,018.0  million

CARRIERS
There were 3 carriers operating in the telecommunication services industry at the end of June 1997. These businesses dominated the industry, with a total income of $18,614.0  million contributing 91% of the industry total. The major source of income for these businesses was the provision of telecommunication services, of which $9,365.7  million (50%) was derived from the sales of voice services, $3,402.6 million (18%) from mobile services, and $2,315.2  million (12%) from data services and other telecommunication services.

Expenses for the carriers totalled $16,621.7  million which contributed 88% to total expenses for the telecommunication services industry. The OPBT for carriers was $1,996.9 million, and the operating profit margin was 11%.

One or more carriers may dominate some of the statistics presented in this publication. The consent to release these statistics has been obtained from the relevant carriers.

INTERNET SERVICE PROVIDERS
There were 296 businesses at the end of June 1997 predominantly operating as internet service providers. This number does not include businesses, particularly small businesses, which provide internet services but derive the majority of their income from other sources, such as computer services and other business services. In 1996-97 ISP businesses received income totalling $156.7 million, the majority of which, $147.7  million (94%), was generated from the sale of internet services.

Total expenses for internet service providers were $187.0  million of which $39.0  million (21%) were attributable to labour costs. Domestic interconnection expenses totalled $32.0  million while transmission expenses were $29.2  million

Internet service providers recorded an operating loss before tax of $30.4  million for the year ended 30 June 1997 and had an IGP of $19.9  million

SERVICE PROVIDERS
At the end of June 1997 there were 82 businesses predominantly engaged in service provision other than internet service provision. These businesses include agent/dealers which, for example, onsell telecommunication services, employed 5,826 persons and received income totalling $1,716.8  million Of this income, $654.9  million (38%) was generated through the sale of voice services and $439.1 million (26%) was earned through the provision of mobile services.

Service providers had total expenses of $2,125.6 million in the year ended 30 June 1997. The largest individual expense was domestic interconnection expenses which totalled $686.4 million (32%) and transmission expenses which totalled $263.3 million (12%). The operating loss before tax of the 82 service providers for the year ended 30 June 1997 was $409.7 million


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