2016 New Zealand - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

New Zealand’s Ultra-Fast Broadband network approaches half-way point

New Zealand’s telecom sector is being transformed by the continuing deployment of the key national infrastructure, the UFB. This ambitious undertaking is fundamental to the country’s broadband landscape, and is underpinning the emerging digital economy as well as the burgeoning digital media sector. As the overall market is being bolstered by the fixed-line and mobile broadband segments, the fixed-line voice market (voice calls and local access) continues to lose overall share of telecom services revenue.

The uptake of mobile broadband is supported by the expansion of mobile technologies based on LTE and by the Rural Broadband Initiative rollout which is adding a large number of mobile cells to new or underserved areas. A February 2016 survey showed that New Zealand retains the second highest overall LTE data speed, behind Singapore. There have been considerable gains made in LTE services, with effective competition between Spark, Vodafone NZ and 2degrees. All three now also operate in the fixed-line sector, thus supporting their bundled services strategies.

UFB is scheduled to be completed by 2020, and by early 2016 about 540,000 premises had been connected. This infrastructure will enable the residential and business segments to make far better use of the potential for IP-delivered services and content, and will help the country maintain its position at the forefront of the digital future.

This report provides analyses of the New Zealand telecoms market. It covers the mobile voice and data sectors, including operating and financial statistics for the three MNOs as well as an assessment of their strategies as they exploit their presence in the fixed-line market to compete more effectively. The report also reviews the digital economy and digital media markets, includes a snapshot of social media usage, as well as updates and data on e-government, e-health and e-learning developments.

Key developments:

• 2015 Spark pays $9 million for a 70MHz block of spectrum in the 2.3GHz band;
• Vodafone New Zealand commercialises dual-band CA LTE service;
• Spark and Vodafone deploy 700MHz LTE wireless broadband in rural areas;
• 2degrees acquires Snap to enter the fixed-line market;
• Vodafone begins upgrade to DOCSIS3.1 technology;
• Orcon sold to CallPlus;
• ComCom increases price for UCLL and UBA access;
• ComCom sets the Telecommunications Development Levy for 2014/15;
• VideoEzy closes on-demand videostreaming platform;
• Report update includes Statistics New Zealand data to June 2015, telcos’ financial and operating results to H12016, regulator’s market updates, recent market developments.

Companies mentioned in this report:

Spark New Zealand, Chorus, Vodafone, 2degrees, TelstraClear, Orcon, Snap, CallPlus, Paymark, Trade Me, TVNZ, Fairfax, Groupon, Ziln TV, CityLink, Vector, Fyx, NOW, Airnet, WorldxChange Communications, Maxnet, Vocus, Skinny, Clear Mobitel, Black+White, Compass, Gemalto.