Activity is concentrated in urban areas

This is an image of a map of Australia which shows the geographic spread across Australia, and size of registered businesses within the communications sector for 2014–15.

Note: Does not include businesses with unknown/unspecified locations which comprise less than 2 per cent of total businesses.

Excludes post.

Source: ABS 8165.0 Counts of Australian Businesses, including Entries and Exits, June 2011 to June 2015, Businesses by Industry Division by Statistical Area Level 2 by Employment Size Ranges, June 2013, June 2014 & June 2015; BCR calculations.

Data link: Activity is concentrated in urban areas

Business activity is concentrated in urban areas and dominated by small and micro businesses.

Profitability has varied across the sector

This is a stacked bar chart. The y axis shows profitability of the sector in millions of dollars, as measured by earnings before interest, tax, depreciation and amortisation, from 0 to 25,000. The x axis shows each financial year, from 2006–07 through until 2014–15. Shows that internet service providers, web search portals and data processing services experienced an annual average growth rate of 23 per cent – far higher than the communications sector average of 0.7 per cent, and higher than the average for all non-financial industries of 4.5 per cent. Shows that telecommunications services remained the single largest part of the communications sector throughout the entire period.

Note: Includes post.

Source: ABS 8155.0 – Australian Industry, 2006–07 to 2014–15, Table 2, EBITDA; BCR calculations.

Data link: Profitability has varied across the sector

Profitability in the sector – as measured by earnings before interest, tax, depreciation and amortisation (EBITDA) – has been varied. However, Internet service providers, web search portals and data processing services experienced an annual average growth rate of 23 per cent since 2006–07, far higher than the communications sector average of 0.7 per cent, and the average for all non-financial industries of 4.5 per cent.

Higher business entry rates than average

This is a bar chart. The y axis shows the percentage of firms entering the industry from 0 per cent up to 20 per cent. The x axis shows each calendar year from 2010 until 2015. Shows that overall, the communications sector businesses had higher entry rates than the average for all industries between 2010 and 2015. In 2015, 4.8 per cent of large businesses and 16.8 per cent of small and medium businesses in the communications sector were new entrants. In contrast, only 1.1 per cent of large businesses and 13.4 per cent of small and medium businesses were new entrants across the broader economy.

Note: Excludes post.

Source: ABS 8165.0 – Counts of Australian Businesses, including Entries and Exits, 'June 2007 to June 2011' to 'June 2011 to June 2015', Businesses by Main State by Industry Class by Employment Size Ranges.

Data link: Higher business entry rates than average

Overall, communications sector businesses had higher entry rates than the average for all industries between 2010 and 2015. In 2015, 4.8 per cent of large businesses and 16.8 per cent of small and medium businesses in the communications sector were new entrants. In contrast, only 1.1 per cent of large businesses and 13.4 per cent of small and medium businesses were new entrants across the broader economy.

Higher exit rates than average

This is a bar chart. The y axis shows the percentage of firms exiting the industry, from 0 per cent to 20 per cent. The x axis shows each year from 2010 through until 2015. Shows that overall, communications sector businesses had higher exit rates than the average for all industries between 2010 and 2015. In 2015, no large communications sector firms exited (compared with 2.8 per cent in the wider economy), while small and medium businesses had an exit rate of 15.3 per cent (compared with 12.4 per cent across the wider economy).

Note: Excludes post.

Source: ABS 8165.0 – Counts of Australian Businesses, including Entries and Exits, 'June 2007 to June 2011' to 'June 2011 to June 2015', Businesses by Main State by Industry Class by Employment Size Ranges.

Data link: Higher Higher exit rates than average

Overall, communications sector businesses had higher exit rates than the average for all industries between 2010 and 2015. In 2015, no large communications sector firms exited (compared with 2.8 per cent in the wider economy), while small and medium businesses had an exit rate of 15.3 per cent (compared with 12.4 per cent across the wider economy).

Dominated by smaller firms

This is a combined bar chart and scatter chart. The left y-axis shows the count of businesses by industry subdivision, from 0 to 30,000 and corresponds to the bar chart. The right y axis shows the percentage change in the number of businesses in each industry subdivision between 2011 and 2015 and corresponds to the scatter chart. The x axis shows the breakdown for each subsector (telecommunications services; postal and courier pick-up and delivery service; publishing (except Internet and music publishing) broadcasting (except Internet); motion picture and sound recording activities. Shows that the postal and courier pick-up and delivery services subdivision has the largest numbers of firms, at 20,455 in 2015. This reflects the reliance of the sector on small contractors operating on behalf of organisations such as Australia Post and major courier and delivery companies. 62 per cent of firms in this sector were non-employing and 37 per cent employed 1 to 19 people. Medium and large firms, employing 20 to 199, and over 200 people, respectively, collectively made up less than 1 per cent of establishments in the postal and courier subdivision. The motion picture and sound recording activities, publishing, and internet services subdivisions are similarly dominated by micro and small firms.

Note: Includes post.

Source: ABS 8165.0 – Counts of Australian Businesses, including Entries and Exits, 'June 2007 to June 2011' to 'June 2011 to June 2015', Businesses by Main State by Industry Class by Employment Size Ranges.

Data link: Dominated by smaller firms

The postal and courier pick-up and delivery services subdivision has the largest number of firms, at 20,455 in 2015. This reflects the reliance of the sector on small contractors operating on behalf of organisations such as Australia Post and major courier and delivery companies. 62 per cent of firms in this sector were non-employing and 37 per cent employed 1 to 19 people. Medium and large firms, employing 20 to 199, and over 200 people, respectively, collectively made up less than 1 per cent of establishments in the postal and courier subdivision. The motion picture and sound recording activities, publishing, and internet services subdivisions are similarly dominated by micro and small firms.