According to BBG Communications, the telecommunications sector in Australia is saturated by telecom provider Telstra. But despite this, space is also a playing ground for other telephone carriers which include Optus, AAPT and, Soul, Vodafone and Hutchison 3G. The main line telephony network in Australia is primarily connected through optical fibre networks, with households tapped to the network through copper lines that are linked in local exchanges. For mobile telephony, Australia runs on the GSM platform, like those in Europe and majority of its neighboring countries in the Asia-Pacific. In 2003, 3G mobile phone services were introduced, adding another plus to the generally considered good domestic and international telecommunications services in the country.
In 1982, a Davidson Enquiry on Australia’s telecommunications services sector, made a recommendation to end Telecom Australia's monopoly. In the following year, Aussat Pty Ltd, another government agency, had been established to operate domestic satellite telecommunication and broadcasting services. But Aussat's charter did not allow it to be a direct competitor to Telecom. A case in point is its charter’s prohibition on interconnecting public switched traffic with Telecom's network. Aussat's viability as a telecommunications player was greatly undermined by difficulties in raising capital, tepid government support and spiraling operation costs.
It wasn't until 1985 that Australia's first geostationary communications satellite was operational; by late 1990, however, it was saddled with debts amounting to about $400 million.
The Australian Telecommunications Commission was restructured, giving way to the Australian Telecommunications Corporation. The new entity traded as Telecom Australia, in 1989. It was also the same year which saw the last domestic telegram handled by Telecom, as responsibility for telegram operations was handed over to Australia Post.
There were proposals floating for a merger of Aussat and OTC, but all were rejected in favor of the disposal of the satellite operator to a non-government entity that would be allowed to compete with Telecom.
Immediately after, Optus Communications - a private sector entity owned by a consortium that included BellSouth - was given Australia's second general carrier licence. Optus proceeded to purchase the Satellite assets with many of the Non Satellite Assets remaining with the Government as part of Telstra. Cable & Wireless, privatized after several decades of UK government ownership, took a controlling stake in Optus in 1998 before control passed to SingTel in 2001.
Optus was initially allowed to cater the national long distance and international telephone calls service in the Australian telecommunications market. The restrictions on players that can enter the general telephone market until 1997 and 'pro-competition' mechanisms under the Trade Practices Act 1974, among which guaranteed access to Telecom's existing infrastructure on reasonable terms, meant to ensure Optus’ viability.
Competition in long distance corporate voice and data service operations was so steep. It was also felt by Telstra versus AAPT which was active from 1991, MCI Communications, later absorbed by the ill-fated WorldCom, was an early major shareholder of AAPT but got out in 1994. New Zealand's Todd Corporation took a 24.5% stake in AAPT in 1992. In 1995 AAPT launched a mobile phone service, using Vodafone as its network supplier, acquired a 50% share of the Australian ISP connect.com.au Pty Ltd and bought NewsNet ITN. In the same year SingTel acquired a 24.5% shareholding in AAPT.
AAPT went on to muscle up. In 1996, it bought 40% of Cellular One Communications, followed by QNET Communications. In the same year it gained a carrier licence, offering long distance services to the residential market and building communications networks for the South Australian and Victorian governments. Subsequently, it moved to 100% of CorpTEL Communications, its AAPT Sat-Tel satellite joint venture, connect.com.au and Cellular One. US-operator Primus acquired Axicorp in 1997, gaining a carriers license and expanding into internet services.
