Vodafone New Zealand

Synopsis

Vodafone NZ is just managing to remain as the country’s largest mobile network operator providing voice, data and value-added mobile services. It has had more than 50% of the mobile market since 2003, but since 2010, market share is now hovering around 48% as the new mobile operator 2degrees gained a foothold in the market since commencing back in 2009. By late 2011 BuddeComm estimates that its market share is still around 48% with final subscriber numbers for end-2011 around the same number as at end-2008.

The company also provides fixed-line voice and data services following its acquisition of ISP, ihug. Vodafone NZ operates a 3G HSPA network and a 2G network both with 97% population coverage. The company is also pursuing a wholesale strategy to support mobile virtual network operators as well as providing wholesale fixed-line voice and broadband products via local loop unbundling.

The company has MVNO agreements with several companies including providing 3G services to TelstraClear on a wholesale basis and a roaming agreement with 2degrees in the New Zealand market. In late 2011 MVNO CallPlus is changing from Vodafone to the WCDMA service from Telecom.

Vodafone and Telecom have an agreement to roll out rural services in the Rural Broadband Initiative using fibre and wireless services. Vodafone was allocated Zone 4 community coverage and will see the rural mobile footprint coverage increase by just over 5% under the agreement.

In this report we provide an overview of the financial and operations of the company with analysis in text, tabular and easy-to-read chart format. We also provide brief analysis of Vodafone’s market strategy in relation to the government’s plan for the Ultra-Fast Broadband Network/Rural Broadband Initiative.

Companies mentioned

Companies mentioned in this report include – iHug, 2degrees, Telecom, Chorus, Vocus Communications, TelstraClear, Orcon, Compass, M2, TeamTalk, CallPlus, Vodafone, First Mobile, BellSouth NZ, MySky, Kordia, Axia.

Hot topics mentioned

Hot topics mentioned in this report include – HSPA, WCDMA, 2G, 3G, ADSL2+, ULL, CDMA, Ultra-Fast Broadband Network (UFB), Rural Broadband Initiative (RBI).

Table of Contents

• 1. Synopsis
• 2. Company information
  • 2.1 Company overview
  • 2.2 Global and Oceania operations
• 3. Company analysis
  • 3.1 The price of success
  • 3.2 Mobile separation
• 4. The network
  • 4.1 2G network
  • 4.2 3G network
    • 4.2.1 Overview
  • 4.3 The Red Network – fixed-line and naked broadband ULL
  • 4.4 International networks
    • 4.4.1 Vocus Communications partnership
    • 4.4.2 Pacific Fibre – and the second submarine cable
• 5. Products and services
  • 5.1 Retail
  • 5.2 Business
  • 5.3 The company and the UFB/RBI
    • 5.3.1 Overview
• 6. Wholesale, roaming and partnerships
  • 6.1 Overview
  • 6.2 TelstraClear
  • 6.3 M2, Compass and Orcon
  • 6.4 2degrees
  • 6.5 Digital Mobile
  • 6.6 First Mobile
  • 6.7 Partnership with Kordia
• 7. Financial and operating results
  • 7.1 Year ending March 2011
  • 7.2 Financial statistics
  • 7.3 Year ending March 2010
  • 7.4 Subscriber statistics
• 8. Company history
  • 8.1 Brief timeline – 1992 - 2011
• 9. Related reports

• Table 1 – Vodafone NZ revenue and annual change – 1996 - 2011
• Table 2 – Vodafone NZ annual profit and annual change – 2002 - 2011
• Table 3 – Vodafone NZ financial overview – 2009 - 2011
• Table 4 – Vodafone NZ average monthly ARPU – pre/postpaid and total – 2003 - 2011
• Table 5 – Vodafone subscriber statistics – 1998 - 2012

• Chart 1 – Overview of Vodafone NZ revenue and annual change – 1996 - 2011
• Chart 2 – Overview of Vodafone NZ key financial statistics - 2008 – 2011
• Chart 3 – Overview of Vodafone NZ subscribers and annual change – 1998 - 2012

• Exhibit 1 – Vodafone New Zealand Ltd at a glance – 2011
• Exhibit 2 – Background on Vodafone UFB / RBI