The total mobile service revenue in Australia is poised to increase at a compounded annual growth rate (CAGR) of 4% from $8.7 billion in 2022 to $10.6 billion in 2027, primarily driven by the mobile data services segment, according to GlobalData, a leading data and analytics company.

GlobalData’s latest Australia Mobile Broadband Forecast (Q1 2023) reveals that the growth in mobile data service revenues will offset the decline in mobile voice service revenues during the forecast period. While mobile voice service revenue will decline at a CAGR of 0.1% between 2022 and 2027 due to consumer shift towards OTT communication platforms and the subsequent decline in mobile voice ARPU, mobile data revenue will increase at a CAGR of 5% over the same period, driven by the growing adoption of higher ARPU-yielding 5G services.

Sarwat Zeeshan, Telecom Analyst at GlobalData, comments: “The average monthly mobile data usage in Australia is expected to increase from 11.5 GB in 2022 to 29.5 GB in 2027, driven by the growing consumption of online video and social media content over smartphones, thanks to data-centric offers extended by telcos with their 4G and 5G service plans.”

GlobalData expects the mobile broadband services segment to expand further, encouraged by the ongoing 5G network expansions by major telecom operators across the country and the government’s “Australian 5G Innovation Initiative”, aimed at encouraging 5G technology adoption among businesses. 5G subscriptions will account for 74.5% share of the total mobile subscriptions in 2027, driven by growing availability and demand for high-speed connectivity.

Zeeshan concludes: “Telstra led the mobile services market in Australia in terms of mobile subscriptions in 2022, followed by Optus and TPG Telecom. Telstra will retain its leading position through to 2027, supported by its strong focus on 4G/5G network expansion and modernization. By 2025, Telstra aims to provide 5G coverage to 95% of the country’s population and expand its 4G/5G footprint.”