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1301.0 - Year Book Australia, 2004  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 27/02/2004   
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Contents >> Communications and information technology >> Telecommunication services industry

The telecommunication services industry is made up of businesses mainly providing telecommunication services to the public by wire, cable or radio. The primary activities of the industry include cable and communication channel services, network communication services, operation of radio relay stations, satellite communication services, telecommunications, telephone services, teleprinter and telex services, and operation of television relay stations.

The industry excludes businesses which manufacture telecommunications equipment, businesses engaged in cable laying and transmission line construction, and those providing secretarial services (e.g. personalised telephone answering services or message delivery services). Also, the ABS classifies the provision of radio and television services (as distinct from the operation of radio and television relay stations) as part of the Cultural and Recreational Services Division of ANZSIC.

The Telecommunications Act 1997 (Cwlth) allows any person to provide a range of telecommunication services, provided they comply with the provisions of the Act. Providers may use telecommunications capacity acquired from a licensed carrier or, in defined circumstances, from non-carrier infrastructure, to supply a range of local or national telecommunication services to consumer and commercial markets. Service providers typically purchase network capacity from carriers at discounted rates. In theory this allows them to provide either similar services at competitive prices or a variety of value-adding services. These services include basic telephony services, mobile phone services, data and value-adding services, Internet services and other telecommunication services.

Table 23.4 shows summary indicators of the performance of the telecommunication services industry from surveys conducted by the ABS in 1996-97, 1998-99 and 2000-01. The growth in this industry is demonstrated by the increase in total income by 19% (or $5.1b) between 1998-99 and 2000-01, to reach over $31b. However, operating profit before tax declined by $0.6b or 11% between 1998-99 and 2000-01.

23.4 TELECOMMUNICATION SERVICES INDUSTRY(a), Summary indicators

Indicator
Units
1996-97
1998-99
2000-01

Businesses at 30 June
no.
411
868
814
Employment at 30 June
no.
79,654
74,471
77,275
Income from ICT services(b)
$m
19,762
25,398
29,827
Total income
$m
20,927
26,417
31,505
Total expenses
$m
19,458
20,637
26,661
Operating profit before tax
$m
1,473
5,566
4,954

(a) Excludes businesses for which telecommunication service provision was a minor part of their business operation.
(b) Information and communication technology.
Source: Information Technology, Australia, 2000-01 (8126.0).


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