HAPPY 10 YEARS

ACCANThe future is exciting.

Ready?

What’s happened over the last

ten years?

2009 – 2019: Consolidating history’s fastest technology transformation

Source: ITU, World Development Indicators

World population

Fixed telephone

Fixed broadband

Mobile telephone

Mobile broadband

7,198

4,640

1,254

468

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

9000

8000

7000

6000

5000

4000

3000

2000

1000

0

8,160

8,049

5,286

1,075

942615

millions

Australia 2009 – 2019: We love connecting

Mobile services

Fixed connections

Population

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

40

35

30

25

20

15

10

5

0

millions

Source: ACMA, World Development Indicators

24

22

10.7

35

25

8

Mobile services

Fixed connections

Population

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

40

35

30

25

20

15

10

5

0

millions

24

22

10.7

35

25

8

Source: ACMA, World Development Indicators

Mobile revolutionThere was no 4G. 90% homes connected to fixed phone

2009 201993% of devices on our network now use 4G. Only 48% of HH use a fixed phone.

nbn transformationNBN Co connected its first homes

2009 201910 million premises are Ready to Connect (5.5 million connected)

Australia 2009 – 2019: We love connecting

Exponential data growth

Mobile network traffic was 0.7% of fixed broadband It’s 7%

2010 2019 2009 2019

Mobile networks

2,800 TB 400,000 TB

18 million TB pa1.2 million TB pa

Fixed networks

2009 2019

In 2019 Australians will consumer 20 million Terabytes of data. How much is that?

40 million years of music

1,000,000,000,000 jpeg photos

Storage for four times more than all the words

ever spoken…

More & better telco for less…

Source: ACCC Annual Telco reports, note change in methodology ~2016

Prices for fixed and mobiles have fallen in real terms every year since 2010.

More data: In 2018 alone there was a 172% increase in mobile data allowances.

Faster speed: In 2019, 55% of customers are connecting to the nbn50 service (up from 4% in 2017).

And 5G is happening…

10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/180.00

-2.00%

-4.00%

-6.00%

-8.00%

-10.00%

-12.00%

Fixed voice

Mobile

Fixed broadband

4.6%

12.0%

10.0%

2.0%1.2%

8.3%

2.4%

1.0%

All this connection has transformed (nearly)

everything we do…

We’ve changed the way we consume media

Newspapers still important We want it online & live2009 2019

Music has moved to the cloud

CD sales still high CD sales dropped, digital streaming high

Source: http://www.aria.com.au/pages/documents/physdigsalesxvalue.pdf http://www.aria.com.au/pages/statistics.htm

CD sales Vinyl Digital singles

Digital album

Digital other (incl streaming)

CD sales Vinyl Digital singles

Digital album

Digital other (incl streaming)

Sales revenue ($ millions)

322

51

120

38 2821 2412

284

2009: Lady Gaga 2019: Drake

2009 2019

Entertainment is transforming

2009 2019

2009: MasterChef 3.7m free to air

2019: Game of Thrones 3.5m paid subscribers

Free to air dominance, peak DVD. 57% of households have a SVOD subscription.

We’re connecting even more devices to fixed & mobile networks

Source: Telesyte

2009 we connected desktops and laptops to the Internet. iPad launched in 2010...

Number of connected devices per household

Smart Home Assistant

Heating

PlugsWearables

Smart Energy MeterAir Con / Smoke Alarm

AppliancesLighting

EntertainmentSecurity & Safety

Speakers2013 2014 2015 2016 2017 2018 2019f

7.4 89.2

12.4

14.617

24.8

Doorbells

The next ten years? Best is yet to come…

Source: Connected Care Watch, WGI

Education

Healthcare Smart homes & cities

Retail

Transport

Agriculture

Aged care

Home working

Disability services

Everything...

Commerce & banking

Government services

The implications for industry, consumers &

advocates? The more things change,

the more things stay the same…

As the world transforms (again), we still need to focus on the same essential elements:

1 How do we encourage investment & competition to deliver speed, capacity & innovation?

2 How do we ensure the disadvantaged aren’t left behind?

3 How do we ensure there is no regional digital divide?

4 Consumer protection (without locking in redundant solutions).

What are today’s key issues that we need to get right for the next decade?

1 Optimising nbn as the nation’s principle broadband infrastructure provider. (the first test: nbn’s pricing review)

2 Ensuring a successful 5G rollout (allocation of sufficient spectrum and enabling safe, efficient network deployment)

3 USO reform

Need for speed: nbn pricing holding Australia back

less than 8mbp 8mbps – 24mbps

24mbps – 100mbps

100mbps or more

less than 8mbp 8mbps – 24mbps

24mbps – 100mbps

100mbps or more

Australia New Zealand

43%

0%

30%

1%

46%

61%68%

3%

14%

34%

0%5%

1%

66%

0%

29%

2009 2019Aust and NZ similar broadband speed. Clear broadband speed (and

rugby) superiority for NZ.

Preventing a digital divide (and stop wasting money)

USO reform is long overdue. It currently funds redundant infrastructure and does not deliver better services and lower prices.Funding uneconomic nbn services, extending mobile coverage and funding community connectivity projects are enticing opportunities…

Preventing a digital divide (and stop wasting money)

A technology-neutral and contestable USG fund

Improved Mobile Black Spot ProgramNBN uneconomic services Community connectivity

projects

ACCAN, “your feedback is important to us…”

The telco industry is helping to deliver the digital revolution and we want all Australians to benefit from this journey.

Most of the time the telco industry gets things right, but we know that it is not acceptable when things go wrong. We are committed to continuous improvement and collaboration. We want to work with consumers to optimise the outcomes.

As we prepare for the next decade, thank you ACCAN for your leadership.

Thank you