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Introduction

Optus has turned its ship around in the last five years and is acting like a true No. 2 challenger operator in the Australian market. With its basics in order – including customer service restructuring and an improved mobile network for LTE – it has embarked on an entertainment-as-a-differentiation strategy that will be expensive.

Highlights

  • Competing as a No. 2 in any market is the most difficult. Incumbents have the scale and resources, while disrupters compete on price and have low-cost business models. With content rights becoming more expensive, Optus will need to ensure that it has deep enough pockets to continue on its entertainment-driven trajectory beyond 2020

Features and Benefits

  • Analyzes how Optus has rejuvenated its business as a strong No. 2-ranked competitor.
  • Assesses challenges facing Optus as it focuses on content to differentiate.

Key questions answered

  • How has Optus recovered its strategy to act as a closer rival to Telstra?
  • Will an enlarged Vodafone-TPG pose a threat to Optus?

Table of contents

Ovum view

  • Summary
  • Optus has all its ducks in a row
  • The Singtel influence bears fruit
  • Optus nips at Telstra’s heels, but will need to watch TPG

Appendix

  • Further reading
  • Author

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