Product Type: Market Research Report
Published by: IBISWorld
Published: October 2009
Product Code: R538-30361Description Industry Risk Ratings Synopsis
This Industry Risk Ratings report from IBISWorld evaluates the inherent risks associated with the Wired Telecommunications Carriers in Australia industry. Industry Risk is assumed to be 'the difficulty, or otherwise, of the business operating environment'.
The report looks at the operational risk associated with this industry. Three types of risk are recognized in our analysis. These are: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk).
This approach is new in that it analyses non-financial information surrounding each industry. Industries are scored on a 9-point scale, where 1 represents the lowest risk and 9 the highest. The Industry Risk score measures expected Industry Risk over the coming 12-18 months.
Industry Definition
This industry covers those businesses that primarily provide voice and data services via the use of landlines, microwaves or satellite linkups. These services include fixed wire telephony services (as opposed to wireless or mobile telephony services), wired network services and cable services (including ISDN and ATM frame relay), as well as the provision of traditional services such as payphones, telexes, telegraphs and telephone exchange operations. This industry does not include the provision of internet access services. IBISWorld accounts for the provision of Voice over Internet Protocol (VoIP) services in the Internet Service Providers industry (J7124).Industry participants operate and maintain their own switching and transmission facilities used in the provision of such services or may actually own a fixed line telephone network system consisting of wires (copper) or cable (fibre optic). They may then sell spare capacity to other telecommunication carriers or resellers.
Report Contents
Risk Overview
The Risk Overview chapter includes sections on Industry Definition and Activities, Industry Risk Score and Risk Rating Analysis. The Industry Definition and Activities section provides a detailed definition of the activities carried out by operators in this industry as defined in NAICS. A list of the primary activities of the industry is also included. The Industry Risk Score section provides the Overall Industry Risk Score as well as the Risk Scores for each of the three types of risk covered that combine to form the Overall Industry Risk Score. These three types of risk are Structural Risk, Growth Risk and External Sensitivity Risk. The Risk Rating Analysis section discusses the underlying factors contributing to the Overall Industry Risk Score.
Structural Risk
The Structural Risk chapter looks at risk arising from within the industry itself and provides a detailed discussion of the industry’s level of exposure to seven key indicators. These key indicators are Barriers to Entry, Competition, Industry Exports, Industry Imports, Level of Assistance, Life Cycle Stage and Volatility of Industry. The Overall Structural Risk Score is a weighted aggregation of these seven key indicators. Each of the key indicators is discussed in detail in this section.
Growth Risk
The Growth Risk chapter looks at risks arising from the expected future performance of the industry. The Overall Growth Risk Score is determined by amalgamating the scores for Recent Industry Growth and Forecast Industry Growth. Detailed analysis is provided discussing the reasons for the growth scores of both.
Sensitivity Risk
The Sensitivity Risk chapter looks at risks arising from forces (sensitivities) external to the industry. The Overall External Sensitivity Risk Score is determined by identifying the most significant (up to 6) external factors and weighting them to represent how significant each sensitivity is to the performance of the industry. Examples of External Sensitivities are Exchange Rates, Interest Rates, Commodity Prices and Government Regulations. There is also a detailed analysis of the affect each of the sensitivities has on the industry, including charts and data tables where appropriate.
Industry Risk and Industry Risk Scoring Methodology
This chapter provides an overview of how IBISWorld defines Industry Risk and discusses the methodology used to arrive at an Industry Risk Score. There is also a table that provides a definition of the seven levels of Industry Risk.
J7121 - Wired Telecommunications Carriers in Australia
C - Manufacturing in Australia
D - Electricity, Gas and Water Supply in Australia
G - Retail Trade in Australia
H - Accommodation, Cafes and Restaurants in Australia
K - Finance and Insurance in Australia
M - Government Administration and Defence in Australia
J7123 - Telecommunications Resellers in Australia Table of Contents RISK OVERVIEW Industry Definition & Activities
Industry Risk Score
Risk Rating AnalysisSTRUCTURAL RISK Barriers to Entry
Basis of Competition
Domestic and International Markets
Industry Assistance
Life Cycle
Industry VolatilityGROWTH RISK Recent Growth Analysis
Forecast Growth Analysis
SENSITIVITY RISK Population Growth Rate
Real GDP Growth
Legislative Compliance Requirements - Wired Telecommunications Carriers
Industry Systems and Technology - Telecommunication Services - Wired Telecommunications Carriers
Competition from Substitutes - Telecommunication Services - Wired Telecommunications Carriers
INDUSTRY RISK AND INDUSTRY RISK SCORING METHODOLOGY What is Industry Risk?
The Industry Risk Scoring Methodology
Risk Rating Score Definition
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