Mobile phone competition heats up in Sydney CBD

These are the latest findings from Roy Morgan’s Single Source (Australia) which is based on a survey of over 50,000 consumers per annum.

Vodafone increases lead over the year

In the six months to October 2017, Vodafone held 31.9% of the market among Sydney CBD workers, down from 32.7% in October 2016. They were followed by Telstra with 28.3% (down 2.4% points) and Optus 24.4% (down 2.3% points).

Mobile Provider Market Shares - Sydney CBD Workers

1. Australians 14+ 2. Respondents may have more than one phone, with more than one provider Source: Roy Morgan Single Source. May to October 2016, n= 23,141; May to October 2017, n= 23,322, Sydney CBD, May to October 2016, n=443; May to October 2017, n=426. Note 0.6% of Australians 14+ and 1.0% of Sydney CBD Workers can't say their service provider.

“The mobile phone market among Sydney CBD workers is significant, with an annual turnover estimated at $373 million, across 520,000 consumers. Competition is very strong, with the major three players much closer in market share than they are for Australia overall. This is highlighted by the fact that the new Vodafone Flagship store has opened beside Optus and over the road from Telstra. Currently Vodafone is the market leader, most likely in part due to its larger share of Sydney CBD outlets.

“While the three major players dominate the Sydney CBD with 84.6% share, it is important to note that this is down from 90.1% 12 months ago. Over this period, the smaller players have increased their share from 14.6% to 19.4%, indicating that competition goes beyond the big three.

“A major challenge for mobile phone providers in this market is that Sydney CBD workers are much more likely to switch mobile providers than Australians overall. Other major differences are that they are more likely to have been born overseas and as a result make more international calls, be male and have higher education. This market appears to be less loyal and more demanding of the services and service that they get from their mobile provider, when compared to the general population.

“Optimising mobile phone store location is important and can be achieved by using Roy Morgan’s geodemographic tool Helix Personas, which can profile the areas around current stores and pinpoint optimal locations for new stores. In this market we have seen that Sydney CBD workers are mainly from two Helix Communities, they are Leading Lifestyles and Metrotechs. These two groups account for only 35.9% of the Australian population, but make up 73.1% of the Sydney CBD workers mobile phone market. By understanding what drives these important segments and where they are located, store location can be optimised.”