-	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.


SOURCE: GlobalData