Australia’s mobile services market is dominated by three nationwide mobile network operators – Telstra, Optus, and TPG Telecom. These companies control the majority of subscribers, network infrastructure, and industry revenue, while several mobile virtual network operators rely on their networks to deliver services.
The market is undergoing a major transition as telecom operators increase investment in 5G network infrastructure and focus on monetizing higher mobile data usage. Rising demand for video streaming, social media, cloud services, and connected applications is pushing operators to introduce premium data plans and expand network capacity. As a result, average revenue per user (ARPU) is gradually improving across the sector.
Telstra maintains market leadership
Telstra remains the largest mobile operator in Australia, with roughly 40 percent to 42 percent market share and around 20.7 million mobile subscribers. The company generates more than $10 billion in annual mobile-related revenue, supported by its extensive network coverage and strong brand reputation.
Telstra continues to command one of the highest ARPU levels in the market. Its postpaid mobile ARPU is about A$53.62, while prepaid ARPU stands near A$28.25. The company’s strategy focuses on premium connectivity and enterprise services, allowing it to maintain higher pricing compared with competitors.
To strengthen its network leadership, Telstra plans to invest about A$800 million over four years to expand and upgrade its mobile infrastructure. The investment includes densifying urban network sites, deploying AI-driven network automation, and enabling satellite-to-smartphone messaging capabilities through partnerships with satellite providers.
Telstra is also expanding 5G coverage to reach more than 95 percent of Australia’s population from 91 percent of the population as of February 2026. Telstra’s mobile network covers more than 99.7 percent of the Australian population.
Optus expands 5G and regional coverage
Optus is the second-largest mobile operator in Australia with around 10.5 million mobile subscribers and approximately 28 percent market share. The company reported operating revenue of about A$8.2 billion in the fiscal year ending March 2025.
Optus has a blended mobile ARPU of roughly A$31 per month. The company continues to increase mobile service revenue through subscriber growth and rising mobile data consumption.
A key element of Optus’ strategy is expanding its 5G network to compete more effectively with Telstra’s premium positioning. The operator plans to deploy about 1,500 5G sites by 2028 and more than 2,400 by 2030, with a strong focus on improving regional connectivity.
Optus is also strengthening its market position through its MVNO brand amaysim, which serves approximately 1.5 million subscribers and helps expand its presence in the value segment.
TPG Telecom strengthens challenger strategy
TPG Telecom, which operates the Vodafone mobile brand in Australia, is the third-largest mobile operator in the country. The company serves around 5.4 million Vodafone subscribers and about 5.8 million mobile customers across all its brands.
TPG Telecom reported about A$4.7 billion in service revenue and close to A$2 billion in EBITDA. The company has also recorded improvements in ARPU, with postpaid ARPU rising about 4.9 percent year over year and prepaid ARPU increasing about 6.1 percent.
The operator’s strategy focuses on cost efficiency, competitive pricing, and partnerships. Its network-sharing agreement with Optus has expanded coverage and improved service availability in regional areas. TPG Telecom is also streamlining operations and concentrating more on mobile services following the sale of certain fixed network assets.
Data growth and 5G adoption reshape the market
Australia’s mobile services market is expected to continue expanding through 2030 as 5G adoption accelerates and data consumption rises. According to GlobalData, mobile services revenue is projected to grow at a compound annual growth rate of 4.1 percent, increasing from $10.2 billion in 2025 to $12.5 billion by 2030.
The growth will be largely driven by mobile data services. While mobile voice revenue is forecast to decline at a CAGR of 2.1 percent due to falling voice ARPU and the shift toward OTT communication platforms, mobile data revenue is expected to increase at a CAGR of 5.2 percent during the same period, Neha Mishra, Telecom Analyst at GlobalData, said.
Average monthly mobile data usage is projected to rise significantly, growing from 16.4 GB in 2025 to 27.4 GB by 2030. The increase will be fueled by higher consumption of online video, social media content, and other bandwidth-intensive applications on smartphones.
5G will remain the dominant mobile technology in Australia throughout the forecast period as telecom operators continue expanding and modernizing their networks. For example, Optus partnered with Nokia in 2025 to strengthen and expand its 5G infrastructure, particularly in regional areas.
As 5G coverage expands and mobile data demand accelerates, competition among Australian operators will revolve around premium data plans, network capacity upgrades, and differentiated digital services. Investments in coverage, speed, and network performance will be critical for operators seeking to maintain market leadership and sustain ARPU growth.
BABURAJAN KIZHAKEDATH