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New Zealand - Telecoms, Mobile, Broadband and Forecasts


Attention: There is an updated edition available for this report.

1. Key Statistics
2. Telecommunications Market
2.1 Overview of New Zealand’s telecom market
2.2 Market analysis
2.2.1 Vodafone’s own little oil spill
2.2.2 Minister seized the reform opportunity
2.2.3 Termination result is win for competition
2.2.4 Where does this leave Telecom NZ?
2.3 For details of the Telecom New Zealand’s major activities, see chapter REF _Ref279743300 \r \h M2 Telecommunications
2.3.1 Overview
2.3.2 Black+White
2.4 Southern Cross Cable Network
2.4.1 Background information
2.4.2 Cable life extended to 2025
2.4.3 AARNet contract extended to 2020
2.5 Telecom Corporation
2.5.1 TelstraClear and the 2nd tier players
2.5.2 Writing on the wall for dominant Vodafone
2.5.3 MTRs - a cash cow
3. Regulatory Environment
3.1 Local loop unbundling (LLU) and Unbundled Bitstream (UBS) overview
3.1.1 LLU versus UBS
3.1.2 Unbundled Bitstream Access (UBA)
3.1.3 Wholesale bitstream services
3.2 LLU and UBS market developments
3.2.1 Developments - 2008 - 2010
3.3 Telecommunications Service Obligations (Kiwi Share)
3.3.1 Background
3.3.2 Telecommunications Development Levy - 2010 - 2017
3.3.3 TSO proposed reform - 2009
3.3.4 Cost comparison
3.4 Telecommunications Relay Service (TRS)
3.4.1 Overview
3.5 Telecommunications Dispute Resolution (TDR)
3.5.1 Scheme overview
3.5.2 Mobile update - mid to late 2010
3.5.3 Mobile services reforms overview - 2009
3.6 Number Portability (NP)
3.6.1 Overview
3.6.2 Statistics
3.7 Wholesale access
3.7.1 Overview
3.8 Telecom Corporation, chapter REF _Ref279748711 \r \h M2 Telecommunications
3.8.1 Overview
3.8.2 Black+White
3.9 Southern Cross Cable Network
3.9.1 Background information
3.9.2 Cable life extended to 2025
3.9.3 AARNet contract extended to 2020
3.10 Telecom Corporation
3.10.1 Operational separation
3.10.2 Telecom wholesale enters the market
3.11 For more information on Telecom NZ, see chapter REF _Ref279748793 \r \h M2 Telecommunications
3.11.1 Overview
3.11.2 Black+White
3.12 Southern Cross Cable Network
3.12.1 Background information
3.12.2 Cable life extended to 2025
3.12.3 AARNet contract extended to 2020
3.13 Telecom Corporation
3.13.1 Telecom wholesale loyalty offers under investigation
3.13.2 Reselling services under investigation
3.13.3 Fair Trading Act prosecutions
4. Fixed Network Market
4.1 Local access and fixed voice overview
4.1.1 Fixed-line voice market
4.1.2 Smaller players gaining only limited traction
4.1.3 Payphones
4.2 The VoIP market
4.2.1 Residential VoIP adoption will be slow and protracted
4.2.2 Market size and estimates
4.2.3 Residential sector
4.2.4 Business sector
4.3 Fixed-Mobile Convergence (FMC)
4.3.1 Introduction
4.3.2 Service bundling
4.3.3 Dual-mode services
4.3.4 Network convergence
5. Major Operators
5.1 CallPlus
5.1.1 Company information
5.1.2 Slingshot
5.1.3 MVNO operations
5.2 Kordia
5.2.1 Company information
5.2.2 Company divisions
5.2.3 The network
5.2.4 Digital media
5.2.5 Financial results
5.3 M2 Telecommunications
5.3.1 Overview
5.3.2 Black+White
5.4 Southern Cross Cable Network
5.4.1 Background information
5.4.2 Cable life extended to 2025
5.4.3 AARNet contract extended to 2020
5.5 Telecom Corporation
5.5.1 Overview
5.5.2 Company information
5.5.3 Company divisions
5.5.4 Telecom’s network
5.5.5 Subsidiary and associate companies
5.5.6 Products and services
5.5.7 Environmental developments
5.5.8 Brief company history
5.5.9 Financial results
5.6 TelstraClear
5.6.1 Network
5.6.2 Wholesale and partnerships
5.6.3 Business and consumer products and services
5.6.4 Financial results
5.6.5 Operating results
5.6.6 Company history to 2010
5.7 Vodafone
5.7.1 Company overview
5.7.2 Global and Oceania operations
5.7.3 Company analysis
5.7.4 The network
5.7.5 Products and services
5.7.6 Wholesale and roaming
5.7.7 Financial and operating results
5.7.8 Company history
5.8 WxC (Worldxchange Communications)
6. Telecommunications Infrastructure
6.1 Ultra-Fast Broadband network
6.1.1 Overview
6.1.2 Key details of the government’s plans
6.1.3 First UFB winners announced in New Zealand
6.1.4 BuddeComm high-level analysis
6.1.5 Broader economic and social benefits
6.1.6 Crown Fibre Holdings (CFH)
6.1.7 The role of Telecom
6.2 UFB moving into 2011
6.2.1 Synopsis
6.2.2 Key issues
6.2.3 Trans-sector approach still missing
6.2.4 Need for a more national approach
6.2.5 Regional deployment
6.2.6 Remote New Zealand
6.2.7 Telecom
6.2.8 Transition period
6.3 Next Generation Networks (NGN) and Fibre-to-the-Home (FttH)
6.3.1 Market overview
6.3.2 Network access technologies
6.4 Kordia, chapter REF _Ref279755682 \r \h CallPlus
6.4.1 Company information
6.4.2 Slingshot
6.4.3 MVNO operations
6.4.4 Local and Regional network initiatives
6.4.5 Regional Backbone network initiatives
6.4.6 Fibre-enabled communities
6.4.7 Other network developments
6.4.8 Telecom’s Next Generation network (NGN)
6.4.9 Telstraclear’s network
7. Broadband Market
7.1 Fixed broadband market
7.1.1 Overview of the New Zealand fixed broadband market
7.1.2 Fibre-based services
7.1.3 The ISP market
7.1.4 Broadband statistics and forecasts
7.1.5 Major broadband service providers
7.2 For more information on Kordia, see chapter REF _Ref279755658 \r \h CallPlus
7.2.1 Company information
7.2.2 Slingshot
7.2.3 MVNO operations
7.3 For details of the company’s major activities, see chapter REF _Ref279743300 \r \h M2 Telecommunications
7.3.1 Overview
7.3.2 Black+White
7.4 Southern Cross Cable Network
7.4.1 Background information
7.4.2 Cable life extended to 2025
7.4.3 AARNet contract extended to 2020
7.5 Telecom Corporation
7.6 Wireless broadband market
7.6.1 Overview
7.6.2 WiFi
7.6.3 WiMAX
7.6.4 Satellite
7.6.5 Major wireless broadband providers
7.7 For more information on Kordia, see chapter REF _Ref279755658 \r \h CallPlus
7.7.1 Company information
7.7.2 Slingshot
7.7.3 MVNO operations
8. Digital Economy
8.1 The digital economy - a key market driver
8.2 Policies and infrastructure
8.2.1 E-government
8.2.2 The Ultra-Fast Broadband network - moving forward
8.2.3 Missing - trans-sector policies - BuddeComm analysis
8.2.4 Previous government initiatives - Digital Strategy 2.0
8.2.5 New Zealand’s current broadband network
8.3 Digital economy in New Zealand
8.3.1 Overview
8.3.2 E-commerce in New Zealand
8.3.3 E-health
8.3.4 E-learning
8.3.5 Smart meters/smart grids
9. Digital Media
9.1 IPTV (DSL TV)
9.1.1 IPTV in New Zealand
9.1.2 TVNZ
9.1.3 Ziln TV
9.2 Mobile TV
9.2.1 Overview
9.2.2 Vodafone
9.2.3 Telecom NZ
9.3 Social networking
10. Mobile Communications
10.1 Spectrum market and regulatory overview
10.1.1 Background information
10.1.2 Management Rights Regime
10.1.3 Impact of new technologies on spectrum usage
10.1.4 Licensed versus unlicensed spectrum
10.1.5 The Radiocommunications Act 1989
10.1.6 Managed Spectrum Parks (MSP)
10.1.7 Market developments - 2010
10.1.8 Market developments - 2009
10.1.9 Spectrum auctions
10.1.10 Unlicensed spectrum
10.2 Major mobile operators
10.2.1 Telecom Mobile
10.3 For details of the Telecom’s major activities, see chapter REF _Ref279743300 \r \h M2 Telecommunications
10.3.1 Overview
10.3.2 Black+White
10.4 Southern Cross Cable Network
10.4.1 Background information
10.4.2 Cable life extended to 2025
10.4.3 AARNet contract extended to 2020
10.5 Telecom Corporation
10.5.1 Vodafone New Zealand
10.5.2 2degrees Mobile
10.5.3 Mobile Virtual Network Operators (MVNOs)
10.6 Analysis
10.6.1 The mobile termination rate debate continues
10.6.2 Fibre-to-the-Home and the role of the mobile
10.7 Statistics
10.7.1 Operating statistics
10.7.2 Revenue analysis
10.7.3 Revenue statistics
10.7.4 Number portability
10.8 Mobile data
10.8.1 International mobile roaming (IMR)
10.8.2 Analysis of data charges and bill-shock
11. Forecasts
11.1 Market overview of the industry of the future
11.1.1 Media market
11.1.2 Total overhaul of the telecoms industry
11.1.3 Infrastructure market
11.1.4 The retail market
11.1.5 The trans-sector market
11.2 The fixed broadband market
11.2.1 Setting the scene
11.2.2 Fixed broadband market forecasts
11.3 The mobile market
11.3.1 Overview of changes
11.3.2 Mobile market scenarios
12. Glossary of Abbreviations
List of Tables, Charts and Exhibits
Table 1 - Country statistics New Zealand - 2010
Table 2 - Telecom revenue statistics - 2008 - 2010
Table 3 - Telephone network statistics - 2010
Table 4 - Internet statistics - 2010
Table 5 - Broadband statistics - 2010
Table 6 - Mobile statistics - 2010
Table 7 - Broadcasting statistics - Pay TV and FTA TV - 2010
Table 8 - Rate of annual change of subscribers by market sector - 2008 - 2010
Table 15 - M2 Group financial data and annual change - 2008 - 2010
Table 9 - New Zealand network versus EU termination charges - 1997; 2000; 2005; 2010 - 2014
Table 10 - Annual cost of TDL - 2010 - 2017
Table 11 - TSO qualified revenue and TRS TSO charges - 2007 - 2009
Table 12 - Telecom wholesale lines - 2007 - 2010
Table 15 - M2 Group financial data and annual change - 2008 - 2010
Table 15 - M2 Group financial data and annual change - 2008 - 2010
Table 13 - Local access, calling revenues and annual change - 2003 - 2010
Table 14 - VoIP plans and calling rates by major provider - December 2010
Table 15 - M2 Group financial data and annual change - 2008 - 2010
Table 16 - Environmental KPIs - 2008 - 2010
Table 17 - AAPT operations expenses - 2008 - 2010
Table 18 - TelstraClear half-year financial results and annual change - 2008 - 2009
Table 19 - Vodafone NZ revenue and annual change - 1996 - 2010
Table 20 - Vodafone NZ annual profit and annual change - 2002 - 2010
Table 21 - Vodafone NZ average monthly ARPU - pre/postpaid and total - 2003 - 2010
Table 22 - Vodafone NZ financial overview - 2009 - 2010
Table 23 - Vodafone NZ subscriber statistics - 1998 - 2012
Table 24 - Estimated number of ISPs, users, subscribers and penetration rate - 2000 - 2011
Table 25 - Internet subscribers by market share - 2009 - 2010
Table 26 - Internet subscriber revenue market share by segment (historic) - 2006 - 2009
Table 27 - Internet subscribers by download speed (historic) - 2007 - 2009
Table 28 - Internet subscribers by download plan data - 2007 - 2010
Table 29 - Total residential broadband subscribers by major provider - 2006 - 2010
Table 30 - Annual change of residential broadband subscribers by major provider - 2006 - 2010
Table 31 - Broadband subscribers - wireless and fixed-line access - 2006 - 2011
Table 32 - Broadband subscribers by technology - 2007 - 2011
Table 33 - Broadband penetration - wireless versus fixed-line access - 2005 - 2011
Table 15 - M2 Group financial data and annual change - 2008 - 2010
Table 34 - Woosh Wireless subscribers - 2005 - 2010
Table 35 - Woosh Wireless financial overview - 2004 - 2009
Table 36 - Budget allocation for UFB investment - 2009 - 2011
Table 15 - M2 Group financial data and annual change - 2008 - 2010
Table 37 - Telecom and Vodafone network termination rates - 2009 - 2014
Table 38 - Mobile subscribers, annual change and penetration rate - 1995 - 2012
Table 39 - Mobile subscribers per major operator - 2001 - 2012
Table 40 - Annual change in mobile subscribers per major operator - 2002 - 2012
Table 41 - Market share of mobile subscribers per operator - 1995 - 2012
Table 42 - Percentage of prepaid customers per major operator - 2005 - 2011
Table 43 - Telecom Mobile and Vodafone annual call minutes (historic) - 2006 - 2009
Table 44 - Mobile market revenue by operator - 1997 - 2011
Table 45 - Mobile market revenue growth by operator - 1998 - 2011
Table 46 - Mobile revenue market share by operator - 1997 - 2011
Table 47 - Size of fixed trans-sector market - 2020
Table 48 - Size of mobile trans-sector market - 2020
Table 49 - Telecommunications services revenue by market - 2010; 2015; 2020
Table 50 - Telecommunications services revenue share by market - 2010; 2015; 2020
Table 51 - Forecast fixed-broadband subscribers - 2010 - 2012; 2015; 2020
Table 52 - Forecast mobile subscribers - 2010 - 2012; 2015; 2020
Chart 1 - UCLL connections - 2008 - 2010
Chart 2 - Annual cost of TSO - 2001 - 2009
Chart 3 - Sprint payments from TRS/TSO - 2004 - 2010
Chart 4 - Monthly porting of local and mobile numbers - 2008 - 2010
Chart 5 - Fixed access lines - 2006 - 2012
Chart 6 - Overview of Kordia’s key financial data - 2006 - 2012
Chart 7 - Kordia revenue by division - 2009 - 2010
Chart 8 - Telecom New Zealand share price trending - 2003 - 2010
Chart 9 - Telecom Group quarterly key financial highlights - Q1 2009/10 - Q1 2010/11
Chart 10 - Telecom Group operating revenue by segment - Q1 2009/10 - Q1 2010/11
Chart 11 - Telecom Group operating revenue by major service - Q1 2009/10 - Q1 2010/11
Chart 12 - Telecom Group expenses - Q1 2009/10 - Q1 2010/11
Chart 13 - Telecom Group financial operating highlights - 2007 - 2011
Chart 14 - Telecom Group financial operating highlights by annual change - 2008 - 2011
Chart 15 - Telecom Group operating revenue annual change by segment - 2009 - 2010
Chart 16 - Telecom Group operating revenue by segment - 2008 - 2010
Chart 17 - Telecom Group operating revenue by major service - 2008 - 2010
Chart 18 - Telecom Group expenses - 2008 - 2010
Chart 19 - Telecom capital expenditure - 1999 - 2011
Chart 20 - AAPT operations operating revenue by service - 2008 - 2010
Chart 21 - AAPT operations operating percentage of revenue by service - 2010
Chart 22 - TelstraClear key financial highlights - 2006 - 2010
Chart 23 - Market percentages of ISPs by size - 2007 - 2010
Chart 24 - Percentage of broadband subscribers by download data limits - 2010
Chart 25 - Broadband subscribers - annual change by technology - 2008 - 2011
Chart 26 - Telecom broadband connections and revenue - 2005 - 2011
Chart 27 - Usage of government online services - 2009
Chart 28 - E-readiness and digital rankings of New Zealand - 2007 - 2010
Chart 29 - The rise and fall of renewable energy use in New Zealand - 1987 - 2025
Exhibit 1 - Regulatory timeline - scheduled UBA and other services launch by service variant
Exhibit 2 - Understanding wholesale bitstream offers around the world
Exhibit 3 - Kordia at a glance
Exhibit 4 - Telecom Corporation New Zealand at a glance
Exhibit 5 - Telecom’s five-year strategic plan historic overview
Exhibit 6 - AAPT historical background information
Exhibit 7 - Subsidiary companies
Exhibit 8 - Associate companies
Exhibit 9 - Vodafone New Zealand Ltd at a glance
Exhibit 10 - Next Generation Networks - defined
Exhibit 11 - Telecom and the roadside cabinet program - a brief overview
Exhibit 12 - Background information on IPSTAR deployment in New Zealand
Exhibit 13 - Compass Communications at a glance - 2010
Exhibit 14 - Compass Communications - brief company history
Exhibit 15 - Woosh at a glance
Exhibit 16 - Brief history timeline of e-government strategies in New Zealand
Exhibit 17 - Historical overview of IPTV developments
Exhibit 18 - Managed Spectrum Park Round 1 applicants versus allocations by TLA areas
Exhibit 19 - 2degrees Mobile at a glance - 2010

This report covers trends and developments in telecommunications - mobile communications, ultra-fast broadband network and regulatory developments in New Zealand. Subjects include:

  • Key players in the market including the incumbent operator;
  • Regulatory changes affecting the market;
  • Planned spectrum changes to the analogue/digital TV and mobile frequencies;
  • Key telecommunications statistics;
  • An overall market snapshot with statistics and selected market forecasts;Market analysis and descriptive commentary of current and future market changes.


Fibre rollouts commence, bringing fast broadband benefitsBuddeComm’s New Zealand - Telecoms, Mobile, Broadband and Forecasts annual publication provides a detailed overview including statistics and analysis of the regulatory, infrastructure, fixed voice and digital media sectors of the New Zealand telecommunications market. Selected market forecasts and an overview of the key market players are also provided.

New Zealand telecoms reforms are continuing to forge ahead - with issues such as termination rates and on-net pricing discussed internally. The trans-Tasman roaming prices are being discussed on both sides of the Tasman.

The Ultra-fast broadband network is coming to fruition with rollouts commencing by two successful applicants - Ultra Fast Fibre and Northpower - both were announced in late 2010. Another region is still under negotiation with Alpine Energy and the CFH. Services are expected to be available in 2011 and then progressively until 2015 when this rollout is completed. The rollouts cover seven of the 33 CFH regions and cover nearly 500,000 people and more than 12,000 business premises, so uptake will be important for the continued success of the nationwide rollout.

Also announced in late 2010 was the next round of UFB priority negotiations for the remaining 25 regions. Telecom New Zealand was selected to negotiate for all of the 25 remaining regions while Enable Networks in under negotiation for two regions and the Flute Joint Venture for one region.

Fixed mobile broadband uptake grew by more than 30% during 2010 fuelled by wider availability of equipment and cheaper plans, while mobile broadband subscribers held steady. New Zealand has a comprehensive terrestrial-based broadband access availability with over 95% of dwellings, which compares favourably with other OECD countries. In 2010, according to OECD data, New Zealand had a broadband penetration rate of 23% which ranked 18th. With the UFB rollout BuddeComm expects a ranking rise as fibre is rolled out and fibre-usage penetration increases.

While all the telco markets continued to expand in 2010, the annual change in growth has dropped across all but the mobile sector due to the competition in that marketplace. In the mobile sector the newcomer 2degrees is continuing to see its subscriber numbers rise. A record number of subscribers are porting their numbers away from Telecom and Vodafone to the MVNOs and 2degrees. 2degrees has expanded its network with the launch of a 3G network and opened branded customer shops. The closure of Telecom’s CDMA network in 2012 may see further subscribers move to the other networks with Telecom losing further market share as subscribers weigh up the other offers available.

The telecom markets may now see increases in product uptake as studies are showing that consumer and business expectations are on the rise, as is the online advertising market. Also, finally after two years in decline the real growth rate of GDP has turned positive. Other economic trends are shifting positively in 2010, although the rise in GST from 12.5% to 15% may dampen economic activity in 2011.

Market highlights:It has been a long time coming as Vodafone slips below 50% market share of the mobile market in 2010;The rollout of roadside cabinets passes the halfway mark providing faster ADSL and VDSL2;Telecom brings forward the wholesaling of the 3G 850MHZ mobile network;Mobile subscribers pass the five million mark at least temporarily;The see-sawing fixed-line market increases once again;The pay TV market hits 50% household penetration;The wireless broadband market that saw massive uptake over the last two years slows down.New Zealand - Key telecom parameters - 2009 - 2010

Year (Jun) 2009 2010 Annual change
Measure
Broadband      
Total broadband subscribers (million) 1.120 1.304 16%
Broadband penetration 37% 38% 2.7%
Fixed Lines      
Fixed telephone lines in service (million) 1.87 1.88 1%
Mobile      
Mobile subscribers (million) (Sep) 4.74 4.99 5.3%
Mobile penetration (%) 110% 114% 3.6%
(Compiled by BuddeComm, various industry sources)

For those needing detailed overviews, statistics and forecasts, as well as objective analysis on all aspects of the New Zealand telecoms industry, this report provides essential reading and gives in-depth information on:

An overall market overview with statistics and forecasts;
Operating overview of the key players in the market including financial overviews;
Fixed and wireless broadband;
Overview on smart grids and smart meters;
The Ultra-fast broadband network and Rural Broad Initiative;
Telecommunications infrastructure;
Regulatory developments;
Digital media and the digital economy;
Fixed network voice and VoIP markets; Mobile communications and regulatory issues covering spectrum developments. Data in this report is the latest available at the time of preparation and may not be for the current year.

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