Increased mobile phone service competition may hurt Telstra, as the telco giant braces for customers demanding more portable streaming content.
The average revenue Telstra derives from each mobile user is declining, with voice and data services affected.
"It is early days, but the recent competitive dynamics may have some impact," Telstra's executive director of mobile Warwick Bray told an investor briefing.
"Yes, there is more competition and we'll need to respond with great, new products."
Consumers are also expected to ditch their desktop and laptop computers in favour of tablets and smart phones.
They will increasingly want portable streaming content with the same speed as workplace computers.
"Technology is blurring the lines between fixed and mobile as well as personal and work life," Mr Bray said.
He said the increased competition was affecting Telstra's average revenue per user (ARPU).
Video content, both for content streaming and calls, makes up half of all network traffic now but that is forecast to rise to 72 per cent by 2019.
The group managing director of networks Mike Wright said video streaming calls would become more common as network speeds increased.
"We do see a growing component of video calling," he said.
Telstra is expecting the faster 5G network, with speeds of 10GB a second, to be standard in five years.
Its ageing 2G network is being phased out by the end of next year.
