The report, produced by The Allen Consulting Group and commissioned by the Australian Mobile Telecommunications Association (AMTA), found that the Industry Gross Product of the Carriage Service Providers exceeded AU$5 billion in 2002-03, which excludes the contribution made by the hardware sector that installs the infrastructure and the retail sector, which onsells the services of the carriers.
The number of people employed by the sector grew by 50 percent from 1996-7 to 2001-02, to employ more than 32,000.
Around AU$1.4 billion will be invested in new networks and expansions and upgrades to existing networks in 2003, in addition to regular operating expenses. The industry has spent more than AU$8 billion on capital expenditure since 1997.
"These investments underpin expansions to mobile network coverage that make mobile services available to more people in more places as well as supporting the development of new services which Australians are embracing," said AMTA CEO Graham Chalker.
Revenue from mobile data services had increased from one percent of total revenue in 1998 to 7.5 percent of total revenue in 2002. With the launch this year of three next-generation mobile services this trend is likely to continue. Hutchison have already signed 50,000 customers to its new 3G network in August, and Vodafone are not far behind announcing yesterday that 50,000 customers had signed on for its next-gen offering, Vodafone Live.
The other growth area is in pre-paid mobile services, which now account for between 55-60 percent of all new subscribers. The mobile industry as a whole grew by 13.5 percent between 2002 and 2003, to over 14 million subscribers - roughly three times the number in 1998.
"This growth has occurred alongside significant decreases in price. Over the period 1996-97 to 2001-02 the cost of mobile telephony decreased by almost 30 per cent," said Chalker.
