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The Demographic Environment Of Telstra

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Demographic The Demographic environment relates to the structure of populations (Oxford Dictionaries | English, 2017). The factors that contribute to the demographic environment relevant to this report are location and density of the population. The telecommunications coverage in rural and regional areas in Australia has monopolistic characteristics. Telstra has a competitive advantage over Optus with 99.3% coverage of the population compared to Optus with a 98.5%, this is equivalent to an estimated 192,000 more potential customers. Although Telstra has this competitive advantage they claim that the revenue received from their rural base stations does not cover the cost of development and maintenance.3. The Australian competition and consumer commission commenced an inquiry looking into Telstra’s rural monopoly in September 2016(4). They concluded that giving service providers roaming capabilities off the Telstra network may have an adverse effect on price levels and there was no evidence that there would be a decrease in Telstra’s pricing through more competition. Currently rural and regional customers benefit from the high competition in metropolitan areas because the industry has consistent Australia wide pricing schedules for their consumer services (5). This demographic macro environmental has given Optus an opportunity to invest in regional areas. Optus chief executive officer Allan Lew recently announced that Optus will invest 1 billion dollars into 500 new base

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