HYDERABAD, India, Aug. 28, 2020 /PRNewswire/ --
- Vocus, at current momentum, could become the second largest
network operator by 2021
- The telco industry globally is facing headwinds and disruption
from multiple fronts
- Vocus is regaining investor confidence through strong focus on
enterprise segment and strategic partnerships
Vocus is one of the telcos that have grown rapidly through
merger and acquisitions (M&A) to become a business generating
A$1.8bn revenue annually. It had
encountered a few hiccups along the way, missing financial targets,
losing nearly the entire management team and experiencing high
customer churn. However, with a new management team and an
overriding focus on execution, Vocus is not only regaining investor
confidence and but also set to emerge as the second largest network
operator by 2021, predicts GlobalData, a leading data and analytics
company.
Siow Meng Soh, Research Director,
at GlobalData, says: "The Australian telco market like many other
mature markets is highly competitive and facing disruption from
multiple fronts. In particular, the implementation of the National
Broadband Network (NBN) has leveled the playing field and
dramatically changed the competitive landscape. The NBN has also
motivated several M&As to create telcos with larger economies
of scale. But this has also created challenges such as disparate
backend systems, branding issues and legacy processes."
To surmount the challenges, Vocus has done well in three areas —
focused on the lucrative enterprise segment instead of targeting
the consumer mass market where differentiation often comes down to
price; strengthened its fixed network using software, cloud and
automation; and partnered with companies like Zoom, Google Cloud,
Fortinet and The Migration Company to grow, differentiate and
challenge the incumbent suppliers.
Within the enterprise segment, Vocus is clear about which
company to target based on its network assets and services
capabilities. The sweet spot is in serving customers with between
1,000 and 2,000 employees as well as key industry verticals
including government, health and mining.
While Vocus' retail business is still declining, the company has
gradually slowed down the decline. The company expects its
enterprise business to maintain growth momentum in the current
financial year to deliver growth.
Soh concludes: "If Vocus is able to maintain its momentum, which
is likely due to a strong Q4 in FY20, healthy request for proposal
(RFP) activity and Australia's
insatiable appetite for bandwidth, it will become the second
largest network services provider in the enterprise segment by the
end of FY21."
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Analysts available for interview. Please contact Aarti
Chandrseker at the GlobalData Press Office for comment on +91 40
6616 6809/ +44 207 936 6400 or
email: pr@globaldata.com.