New Zealand Telecommunications Q3 2019
Vodafone's sale of its New Zealand arm to a consortium of infrastructure investors highlights the competitive nature ofthe country's mobile market, which has provided very low returns to the UK telecoms group. We expect pressures, in light ofslimming organic growth opportunities, to remain elevated up to 2022, when 5G networks are set to be commercialised. Thegovernment's national broadband projects, namely the Ultra-fast Broadband (UFB) effort and the Rural Broadband Initiative (RBI) willboost connectivity; in urban areas, wireline technologies will proliferate, and in rural areas, the wider technological flexibility adoptedby the RBI will see greater uptake of wireless technologies. Improved coverage of mobile services and further governmentinvestment into the mobile black spot programme will accelerate the decline of wireline voice connections.
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