:: National ICT Industry
   Pulse Results Released

Results identify a positive sentiment for Australia’s general ICT sector outlook
Communications Alliance and KPMG have announced the results of the national Industry Pulse survey – the inaugural half yearly survey of senior decision makers in the Australian ICT industry. The survey identified the perception and sentiment of the industry focusing on issues ranging from market outlook and regulation to technology.

The results reflect an overall optimistic outlook for the Australian ICT industry over the next 12 months, with 60 per cent of respondents either strongly agreeing or agreeing that their organisation’s profit will increase, over 80 per cent believe their sectors will grow and over 70 per cent consider competition will increase. The survey also indicates that the industry realises the significance of fibre to the node (FTTN) to the economy, but highlighted there are other technologies that would increase broadband take-up and not all relevant issues have been explored in the current FTTN debate.

Anne Hurley, CEO of Communications Alliance said “The survey results reveal an industry outlook that is promising.  The sentiments expressed affirm the importance of ongoing discussion and debate about Australia’s broadband rollout.”

“It is timely that the survey results coincide with the release of the OECD’s Communications Outlook 2007, as one of the general OECD findings is that broadband continues to be one of the telecommunications industry’s main growth areas but also one of the key challenges.  The OECD Outlook claims that government, industry and stakeholders need to work together on the solution to upgrade copper networks to fibre.  Combined with the survey results, this confirms that the Federal Government’s FTTN Expert Panel presents the opportunity for industry to work with the Government and stakeholders for a successful tender process and positive outcome for all Australians.”

Malcolm Alder, KPMG commented “Encouragingly, respondents generally feel very confident in their own organisation’s ability to compete effectively in the marketplace – particularly with the calibre of senior profile respondents. The results set a high benchmark of positive sentiment that will be interesting to track over the next two to three years. It will be particularly interesting when looking at the impact of the Government’s FTTN Expert Panel, the structure of the recently announced review of the  Universal Service Obligation (USO), the details of the OPEL roll out and the next Federal election.”

An overview of results
Of the key decision makers who were positive about the industry’s outlook for the next financial year, consultant and professional services firms were the most optimistic, while telecom carriers and ISPs were more cautious. As a result of this optimism, over 80 per cent of respondents expect to see their sector grow overall and their company’s sales to increase, while 75 per cent  predict their company’s range of activities to expand (in the next 12 months).

However, despite encouraging growth expectations, around 50 per cent of participants highlighted capital expenditure would be tight, with 40 per cent having a cautious view towards profit increases. Factors contributing to these cautions include an expectation of rising competition and increasing uncertainties, including unpredictability around regulation, customer preferences, technology innovation and political environment.

Just under 70 per cent of respondents believe an advanced, nation-wide FTTN network would make a significant difference to the Australian economy. However, over 70 per cent are also of the opinion that FTTN is not the only technology and there are alternative solutions that would increase Australia’s broadband take up. Those most in favour of FTTN were telecom carriers, ISPs and professional services firms (in general, organisations with more than 10,000 employees). However, more than 10 per cent of telecom carriers and ISPs disagreed on the importance of FTTN to the Australian economy and almost one quarter on FTTN’s significance to their company’s future.

Around 60 per cent of those surveyed agreed that the effectiveness of an FTTN network depends on its owner, but 85 per cent also indicated that the regulatory regime would have greater impact on its effectiveness.

The survey, conducted in the first two weeks of June 2007 by an independent company, sent personalised invitations to pre-selected respondents, where they could ‘opt-in’.

The Industry Pulse survey covered all states of Australia and will be conducted on a bi-annual basis by Communications Alliance and KPMG. The survey will be used as a benchmark for the ICT and telecommunications industry. Those interested in participating in the next survey should register their name by email to info@commsalliance.com.au .