Telecom's Analogue Mobile Phone Network Conundrum

Strategic Insights -

A recent surge in analogue mobile phone network subscribers, with over 100,000 new users joining in December alone, has raised doubts about the network's scheduled shutdown, as the Federal Government plans to progressively shut it down starting from January 1, 1996. This is despite Telecom's plan to spend $240 million in 1995 on improving the analogue network, even though work will start on winding it down. Meanwhile, the digital mobile network, which has a combined user base of 118,750 for all three networks, lags far behind, with Optus claiming to have signed up its 50,000th GSM digital mobile customer.

Key Takeaways:

  • The analogue mobile phone network has seen a significant surge in new subscribers, with over 100,000 users joining in December 1994, taking the total number of subscribers to 1.57 million at the start of 1995.
  • The analogue network is 13 times bigger than all the digital networks combined, with a total of 1.57 million subscribers compared to 118,750 for all digital networks.
  • The Federal Government plans to progressively shut down the analogue mobile phone network starting from January 1, 1996.
  • The digital mobile network has a combined user base of 118,750 for all three networks (Optus, Telecom, and Vodafone) at the start of 1995.
  • Optus claims to have signed up its 50,000th GSM digital mobile customer, while Telecom and Vodafone have a combined 68,750 subscribers, with no official figures available for Telecom's MobileNet Digital service.
  • Industry sources estimate the digital market share breakdown as follows: Optus 40%, Telecom 35%, and Vodafone 25%.

Statistics:

  • 1.57 million: total number of analogue mobile phone subscribers at the start of 1995
  • 118,750: combined user base for all digital mobile networks (Optus, Telecom, and Vodafone) at the start of 1995
  • 50,000: Optus's claimed number of GSM digital mobile customers
  • 43,750: estimated number of Telecom's GSM digital mobile customers
  • 25,000: estimated number of Vodafone's GSM digital mobile customers
  • $240 million: Telecom's plan to spend on improving the analogue mobile phone network in 1995
  • $160 million: Telecom's plan to spend on improving the digital mobile network in 1995
  • $50 million: increase in funds allocated to extend the digital mobile network into Uluru (Ayers Rock) and Yulara in the Northern Territory

Sources:

  • Telecom's plans to spend $240 million on improving the analogue mobile phone network in 1995
  • Federal Government's plan to progressively shut down the analogue mobile phone network starting from January 1, 1996
  • Optus's claim to have signed up its 50,000th GSM digital mobile customer
  • Industry sources estimating the digital market share breakdown
  • Telecom's figures for the number of analogue mobile phone subscribers at the start of 1995
  • Vodafone's statement about their sales figures and decision not to resell Telecom's 018/015

References:

Telecom's plans to spend $240 million on improving the analogue mobile phone network in 1995:

"[Telecom plans to spend $240 million in 1995 on improving the analogue network]"

Federal Government's plan to progressively shut down the analogue mobile phone network starting from January 1, 1996:

"The Federal Government has said several times that the analogue mobile phone network will be progressively shutdown, starting on 1 January, 1996..."

Optus's claim to have signed up its 50,000th GSM digital mobile customer:

"Recently, Optus claimed to have signed up their 50,000th GSM digital mobile customer"

Industry sources estimating the digital market share breakdown:

"Industry sources say that the digital market share breakdown is as follows (rounded to the nearest 5 per cent): Optus 40 per cent, Telecom 35 per cent and Vodafone 25 per cent."

Telecom's figures for the number of analogue mobile phone subscribers at the start of 1995:

"According to Telecom, more than 100,000 new mobile subscribers flooded on to the analogue network, taking advantage of tempting deals offered by telephone suppliers"

Vodafone's statement about their sales figures and decision not to resell Telecom's 018/015:

"Vodafone, the third mobile phone company got nothing because they elected not to resell Telecom's 018/015 when they started operation."