Business mobile telephony, which covers the entire range of mobile phone service, is a booming business, according to new data.
The mobile phone market is forecast to grow by 30 per cent in 2020, with revenues up by an average of 12 per cent per year, according the latest edition of the Essential Report, commissioned by the National Broadband Network (NBN).
The report forecasts that by 2021, the business will be worth $2.5 billion, up from $1.3 billion last year.
The biggest winners in the market are the big players in the telco and cable industries, with $2 billion in revenues, according Nielsen, the biggest single-industry players in Australia’s telco market.
The report predicts that by 2025, the number of businesses operating in Australia will be roughly equal to the population of Sydney.
The market will also grow by another 6 per cent each year over the next five years, to $6 billion, according research firm IBISWorld.
“Our forecasts suggest that the market will be overvalued by the time of the next election, with most businesses not valued at more than half their current value,” said Ian Robertson, chief executive of the Australian Mobile Telecommunications Association (AMPTA).
“Our industry is not a bubble and it’s time for us to step up our game to capture a share of the mobile phone pie.”
Mobile phone and data networks have become increasingly important for Australians.
The NBN is expected to be the most popular communications technology in the country, with more than 70 per cent of Australians using mobile phones by the end of 2021.
But, despite the strong growth in the industry, the industry is still largely reliant on telcos.
The total number of people connected to mobile networks in Australia is estimated to have increased from 4.7 million in 2010 to 5.9 million in 2021, with just 1.2 million of those connected to the NBN, the Essential report found.
While many businesses have found success in mobile phones, some are struggling to stay afloat.
Mr Robertson said many of the most successful businesses in the mobile telemarketing industry were also those with limited capital, or no staff.
“The biggest companies are the ones that have staff who are highly skilled in a particular field or in the particular business,” he said.
“There’s a lot of great people in the business but you’re just not getting the returns from the investment you make in people and the staff you hire.”
When you look at the top 10 most successful mobile phone businesses, you see that they’re all owned by people who are not qualified.
That’s because you have to get the people who have the skills to be qualified.