Telecommunication Services Industy in Australia

Telecommunication Service Industry In Australia
Abstract
The Australian telecommunication market has undergone extensive liberalization over the past decade. With over 60 carriers and many more services providers, competition is now commonplace in the supply of many services

Table of Content
1. Introduction
2. Analysis
1. Market structure
2. Regulation
3. Cost structure, economies of scope and vertical integration.
4. Price discrimination
5. Information structure and asymmetric information problems
6. Advertising
7. Two-sided market
8. Bounded rationality of consumers and bundling
3. Conclusion
4. Reference list

1.0 Introduction:
The Australian telecommunication industry contributed around 3% to Australia’s gross domestic product. The industry is made up of business mainly providing telecommunication services to the public by wire, cable or radio. The primary activities of the industry include cable and communication services, internet services, network communication services, telephone services and so on.

2.0 Analysis
2.1 Market Structure:
The Australian telecommunication market has undergone extensive liberalization over the past decade With over 60 carriers and many more services providers, competition is now commonplace in the supply of many services.

The table below shows the performance indicators of companies in the industry.

Total income for the industry was $31,796 millions in 2003-2004. The largest income sources for telecommunication services were the provision of basic telephone services ($10,946m or 34%), mobile and paging services (8,154m or 26%), data and text services ($2,655m or 8%) and internet services ($2,183m or 7%).

We could easily find out that there are 39 telecommunication businesses with employment of 100 persons or more, accounts for 4% of all telecommunication businesses. These large businesses account for 90% of total employment and 94% of total income.