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New Zealand - Telecoms, Mobile, Broadband and Forecasts

New Zealand - Telecoms, Mobile, Broadband and Forecasts

UFB connecting over half a million homes while industry pushes for universal 1Gb/s service

New Zealand’s Ultra-Fast Broadband/Rural Broadband Initiative (UFB/RBI) is continuing to make steady progress. This significant infrastructure development, scheduled to be completed by about 2020, will provide the necessary network capabilities to propel the country’s digital economy, enabling key sectors such as e-government, e-commerce and digital media to flourish across the country. By late 2014 about 536,000 premises were connected to the UFB, with some 55,000 premises having signed up for services. About 1.2 million premises will be connected when the project is complete. Rolling out the UFB, undertaken by Chorus and other local operators, has helped to drive investment in telecom infrastructure, which increased from $1.24 billion in 2010/11 to $1.58 billion in 2012/13, before falling to $1.48 billion in 2013/14.

New Zealand has experience steady growth in fixed broadband penetration in recent years. The overall number of broadband subscribers grew by just under 10% in 2013, maintaining the momentum seen since 2010. The principal growth areas have been in the mobile broadband and fibre sectors. The number of fibre subscribers will continue to increase substantially over the coming years as the ultra-fast broadband service for urban dwellers sees increased uptake among consumers.

The uptake of mobile broadband has been bolstered by the expansion of mobile technologies based on LTE, offered by all three network operators. It has also been supported by the RBI rollout, which will add a number of mobile cell sites to rural areas. By late 2014 Vodafone NZ reported that more than 500,000 subscribers were on its LTE-enabled plans, and that LTE-capable devices accounted for a third of all device sales during the previous 12 months.

New Zealand’s mobile market continues to undergo significant developments. Mobile penetration, at around 120-125%, is growing steadily as operators provide add-on packs attracting increased usage at a lower cost. The award of digital dividend spectrum has placed 2degrees at some disadvantage, given that it can make use of only half of the 700MHz allocation secured by Spark. Competition among players has also driven down prices, while a range of messaging OTT services have lowered the volume SMS and MMS traffic, and with it the revenue derived from MNOs. At the same time, operators are having to adapt their business models and invest in network upgrades to keep pace with growing consumer demand for mobile data services.

Key developments:

Spark secures the remaining spectrum block in the 700MHz band,
expands the reach of LTE,
signs MoU with Huawei to upgrade its 3G network and provide CA technology; Vodafone sees slight rise in customer base,
doubles data allowance for RBI customers; Census showing continuing shift from landline telephone to mobile; Dunedin named as New Zealand’s ‘Gigatown’; Vocus Communications acquires FX Networks,
secures Spark’s 10% interest in the Sea-Me-We 3 Perth-Asia cable; Orcon sold to CallPlus; Northpower Fibre completes fibre network build,
passing over 19,000 premises; Google trials high-altitude balloon-based WiFi; 50GB data plans adopted by half of all broadband subscribers; fibre broadband connections increased 90% in the year to June 2014; report includes ComCom’s 2013 Monitoring Report,
Statistics New Zealand data to June 2014,
operator data updates,
recent market developments.

Companies mentioned in this report:

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

Data in this report is the latest available at the time of preparation and may not be for the current year


  • EXECUTIVE SUMMARY
  • THE MARKET MOVING INTO 2015
    • COMPETITIVE LANDSCAPE
      • New Zealand's 2nd tier players still under pressure
      • Is consolidation needed for future survival
      • Fibre will provide more and better access to services
    • THE UFB AND RBI
      • UFB analysis
        • Table Telecom services revenue and investment statistics - 2008 - 2014
        • Table Estimated cost of building the UFB
    • MOBILE MARKET
      • Will TelstraClear's new owner add value to the market
        • Table Spark mobile subscribers - 2001 - 2014
        • Table Vodafone mobile subscribers - 2007 - 2014
        • Table 2degrees mobile subscribers - 2009 - 2014
    • DEVELOPMENTS IN CLOUD SERVICES AND BIG DATA
      • Growth in crowdsourced data collection
      • Big data and the growth in M2M
    • CONSUMER PRICES
      • Higher price points leads to lower uptake
  • STATISTICAL OVERVIEW OF THE MARKET
    • KEY STATISTICS
      • Table Country statistics - 2014 (e)
      • Table Telecom services revenue and investment statistics - 2008 - 2014
      • Table Telephone network statistics - 2014 (e)
      • Table Internet statistics - 2014 (e)
      • Table Broadband statistics - 2014 (e)
      • Table Mobile statistics - 2014 (e)
      • Table Broadcasting statistics - Pay TV and FTA TV - 2014 (e)
      • Table Local access lines by sector - 2006 - 2014
    • LOCAL ACCESS AND FIXED VOICE OVERVIEW
      • Fixed-line voice market
        • Table Local access lines and local service and calling revenues - 2002 - 2014
        • Table Fixed-line voice traffic use per connection - 2008 - 2014
        • Table Fixed-line retail revenue - 2006 - 2014
      • Smaller players operate in niche markets
      • Payphones
    • VOIP MARKET
      • Market overview
      • Market size and estimates
      • Residential sector
        • Table VoIP plans and calling rates by major provider
      • Business sector
    • FIXED-MOBILE CONVERGENCE (FMC)
      • Introduction
      • Service bundling
      • Dual-mode services
      • Network convergence
      • International cable updates
      • Other developments
    • SMART GRID DEVELOPMENTS
  • REGULATORY OVERVIEW
    • HISTORY
    • UBA, UCLL, LLU AND UBS ACCESS MARKET DEVELOPMENTS
      • Determination on wholesale services
        • Table Regulated UCLL and UBA pricing - 2014
      • Minor changes post Spark and Chorus demerger
        • Table Regulatory timeline - scheduled UBA and other services launch by service variant
    • MOBILE REGULATION DEVELOPMENTS
      • Mobile Termination Rates (MTRs)
        • Table Spark and Vodafone network termination rates (Cents per minute) - 2011 - 2014
      • Micropayments using PayforitNZ approved
    • SPECTRUM MARKET
      • Background information
      • Spectrum and auctions
      • Analogue Switchover (ASO)
        • Table Anticipated ASO timetable
    • TELECOMMUNICATIONS SERVICE OBLIGATIONS (KIWI SHARE)
      • Background
      • Telecommunications Development Levy - 2010 - 2017
        • Table Annual cost of TDL - 2010 - 2017
      • TDL changes
    • TELECOMMUNICATIONS RELAY SERVICE (TRS)
      • Overview
      • Cost of the TRS
        • Table Sprint payments from TRS/TSO - 2004 - 2014
    • TELECOMMUNICATIONS DISPUTE RESOLUTION (TDR)
      • Scheme overview
    • NUMBER PORTABILITY (NP)
      • Overview
      • Statistics
  • MARKET FORECASTS 2015, 2020
    • MARKET OVERVIEW
      • Media market
      • Total overhaul of the telecoms industry
      • Infrastructure market
      • The retail market
      • The trans-sector market
        • Table Size of fixed trans-sector market - 2020
        • Table Size of mobile trans-sector market - 2020
        • Table Telecommunications services revenue by market - 2010; 2015; 2020
        • Table Telecommunications services revenue share by market - 2010; 2015; 2020
    • THE FIXED BROADBAND MARKET
      • Setting the scene
      • Fixed broadband market forecasts
        • Table Forecast DSL subscribers - 2008 - 2015; 2020
    • THE MOBILE MARKET
      • Overview of changes
      • Mobile market scenarios
        • Table Forecast mobile voice subscribers - 2008 - 2015; 2020
  • MOBILE COMMUNICATIONS
    • MOBILE MARKET OVERVIEW
    • MAJOR MOBILE OPERATORS
      • Spark Mobile
        • Table Spark mobile service revenue - 2009 - 2014
        • Table Spark mobile subscribers - 2001 - 2014
      • Vodafone New Zealand
        • Table Vodafone mobile subscribers - 2007 - 2014
        • Table Vodafone company revenue - 2012 - 2014
      • 2degrees Mobile
        • Table 2degrees Mobile at a glance
        • Table 2degrees mobile subscribers - 2009 - 2014
        • Table 2degrees key financial performance figures - 2008 - 2013
    • MOBILE VIRTUAL NETWORK OPERATORS (MVNOS)
      • TelstraClear
      • Black+White
      • CallPlus/Slingshot
      • Compass
      • Orcon
    • MOBILE MARKET ANALYSIS
      • 700MHz Spectrum auction
    • STATISTICS
      • Operating statistics
        • Table Mobile data traffic - 2010 - 2014
        • Table Mobile data use per connection - 2010 - 2014
        • Table Mobile voice traffic - 2006 - 2014
        • Table Mobile voice traffic use per connection - 2006 - 2014
        • Table Mobile subscribers, annual change and penetration rate - 2001 - 2014
        • Table Annual change in mobile subscribers per major operator - 2002 - 2013
        • Table Historic - Market share of mobile subscribers per operator - 1995 - 2004
        • Table Market share of mobile subscribers per operator - 2005 - 2013
        • Table Spark and Vodafone prepaid versus postpaid subscribers - 2005 - 2013
        • Table Market share of prepaid subscribers by MNO - 2009 - 2013
      • Historic statistics
        • Table Mobile subscribers per major operator (historic) - 2001 - 2007
        • Table Mobile subscribers, annual change and penetration rate (historic) - 1995 - 2000
      • Revenue analysis
        • Table Spark and Vodafone network termination rates - 2009 - 2014
      • Mobile revenue statistics
        • Table Mobile market revenue - 2006 - 2014
        • Table Annual change in mobile market revenue by MNO - 2008 - 2013
        • Table Mobile revenue market share by MNO - 2008 - 2013
        • Table Mobile market revenue by MNO (historic) - 1997 - 2007
        • Table Annual change in mobile market revenue by MNO (historic) - 1998 - 2007
        • Table Mobile revenue market share by MNO (historic) - 1997 - 2007
      • Number Portability (NP)
      • Smart device market
    • MOBILE MESSAGING
      • Short Message Service (SMS)
        • Table SMS messages sent - 2009 - 2015
        • Table SMS revenue - 2009 - 2015
    • MOBILE CONTENT AND APPLICATIONS
      • Mobile data growth
      • International Mobile Roaming (IMR)
        • Table Frequencies of mobile network operators in Australia and New Zealand - 2013
      • NFC payments
      • Joint venture for Trusted Service Manager (TSM)
      • Machine-to-Machine (M2M)
  • THE BROADBAND MARKET
    • STATISTICS, OVERVIEW AND PROVIDERS
      • Market overview
        • Table Fixed-broadband penetration by access method - 2007 - 2014
        • Table Fixed-broadband connections by data cap (per month) - 2011 - 2014
        • Table Fixed-broadband subscribers - 2006 - 2015
        • Table Dial-up internet subscribers - 2011 - 2015
        • Table Average data consumption- 2011 - 2015
        • Table Proportion of broadband subscriptions by data rate - 2012 - 2013
        • Table Unbundled lines - 2007 - 2014
        • Table DSL and cable broadband subscribers - 2011 - 2015
        • Table Wholesale broadband lines (excl. Spark) - 2006 - 2014
      • The ISP market
        • Table Estimated number of ISPs and internet penetration rate - 2000 - 2014
        • Table Internet users and subscribers - 2000 - 2014
        • Table ISP share of broadband subscribers - 2012 - 2013
        • Table Internet subscribers by market segment - 2006 - 2014
        • Table Market share of ISPs by size - 2007 - 2014
        • Table Proportion of internet subscribers by download speed - 2011 - 2014
        • Table Internet subscriber numbers by download speed (historic) - 2007 - 2009
        • Table Internet subscribers by download speed (historic) - 2010 - 2012
        • Table Internet subscribers by upload speed (historic) - 2010 - 2012
        • Table Internet subscribers by download plan limits - 2010 - 2014
        • Table Proportion of internet subscribers by download plan limits - 2011 - 2014
      • Broadband statistics and forecasts
        • Table Estimates of retail broadband subscribers by major provider - 2010 - 2013
        • Table Annual change of residential retail subscribers by major provider - 2009 - 2013
        • Table Fixed-broadband subscribers by platform - 2005 - 2013
        • Table Broadband penetration - wireless versus fixed-line access - 2005 - 2014
        • Table Spark retail broadband subscribers - 2011 - 2014
        • Table Spark broadband subscribers (retail and wholesale) - 2011 - 2014
      • Major broadband service providers
        • Table Orcon company acquisitions - 2000 - 2010
    • FIBRE DEVELOPMENTS
      • Table Wireless broadband subscribers - 2011 - 2014
    • WIFI DEVELOPMENTS
      • Table Wireless broadband subscribers - 2011 - 2014
    • MOBILE BROADBAND
      • Table Mobile broadband revenue - 2009 - 2014
      • Table Mobile broadband traffic - 2010 - 2014
      • Table Mobile broadband subscribers - 2011 - 2014
    • SATELLITE BROADBAND DEVELOPMENTS
    • ULTRA-FAST BROADBAND MARKET
      • The UFB and RBI
        • Table Brief overview of UFB deployment by area
        • Table Brief overview of RBI deployment
      • BuddeComm analysis
      • Overview of involved parties
        • Table Overview of UFB rollout by premise type and users available - 2013 - 2019
    • WIRELESS BROADBAND
      • Overview
        • Table Fixed wireless broadband penetration - 2005 - 2014
        • Table Mobile handset internet connections - 2011 - 2014
      • WiFi
      • WiMAX
      • Satellite
      • Major wireless broadband providers
        • Table Compass Communications at a glance
        • Table Kordia at a glance
        • Table Woosh at a glance
        • Table Woosh Wireless subscribers - 2005 - 2013
        • Table Woosh Wireless key financial results overview (historic) - 2004 - 2011
        • Table Woosh Wireless capex versus opex - 2009 - 2011
        • Table Zenbu subscribers, WiFi zones and data throughput - 2007 - 2012
  • DIGITAL ECONOMAY AND DIGITAL MEDIA
    • THE DIGITAL ECONOMY - A KEY MARKET DRIVER
    • POLICIES AND INFRASTRUCTURE
      • E-government
      • The Ultra-Fast Broadband network - getting connected
        • Table Budget allocation for UFB investment - 2009 - 2013
      • New Zealand's current broadband network
    • DIGITAL ECONOMY IN NEW ZEALAND
      • Overview of the indicators
    • E-COMMERCE
      • Overview and statistics
        • Table Estimated New Zealand population shopping online - 2008 - 2014
      • Daily-deal coupon sites still growing in popularity
        • Table Top 5 e-commerce sites in New Zealand by popularity - 2011 - 2013; 2015
      • Trade Me
      • Global newcomers to e-commerce in New Zealand
      • Online music
    • E-HEALTH
      • Overview
      • Personal health care records
      • E-learning
    • SMART METERS/SMART GRIDS
      • Overview
      • Renewable energy use target set for 2025
      • Electric vehicles trials and wireless chargers
      • Pilots and trials
      • Smart meters finally getting smart
      • Smart grids starting to roll out
      • Auckland network smart meters
      • Google PowerMeter installed in New Zealand
      • Smart networks
      • Smart homes
      • Time shifting of power usage
    • DIGITAL MEDIA
      • IPTV (DSL TV)
      • Mobile TV
      • Social networking
        • Table Information, e-commerce or social media websites in New Zealand in top 20 - 2011 - 2012; 2015
        • Table Overview of Facebook users in New Zealand - 2009 - 2014
  • MAJOR OPERATORS
    • SPARK NEW ZEALAND
      • Company overview
        • Table Spark New Zealand at a glance including key highlights
      • Background information on the demerger of Chorus and assets
      • Recent developments - free WiFi, 4G, data roaming reduced
      • Rebranding
      • Operations statistical information
        • Table Fixed lines in operation by division - 2008 - 2014
        • Table Annual change in fixed lines by division - 2009 - 2014
      • Company divisions
        • Table Spark Digital revenue by type -line subscribers by type - 2010 - 2014
        • Table Spark Digital fixed-line subscribers by type - 2011 - 2014
        • Table Spark mobile monthly ARPU - pre/postpaid voice and data - 2009 - 2014
        • Table Annual change in monthly ARPU by market sector - 2010 - 2014
      • Products and services
        • Table Spark fixed lines and market share - 2010 - 2014
      • Subsidiary and associate companies
        • Table Overview of subsidiary companies - 2014
        • Table Overview of associate companies - 2014
      • Environmental developments
        • Table Environmental KPIs - 2009 - 2014
      • Company history
      • Financial results FY2014
      • Financial results FY2013
        • Table Spark key financial operating highlights - 2009 - 2014
        • Table Spark key financial operating highlights by annual change - 2009 - 2014
        • Table Spark revenue by service division - 2011 - 2014
        • Table Spark expenses - 2010 - 2014
        • Table Spark capital expenditure - 1999 - 2014
        • Table AAPT operations revenue by service - 2011 - 2014
        • Table AAPT operations expenses - 2009 - 2014
    • VODAFONE NEW ZEALAND
      • Company overview
        • Table Vodafone New Zealand at a glance
      • Global and Oceania operations
      • TelstraClear purchased by Vodafone
      • Company analysis
      • The networks
      • Products and services
      • Wholesale, roaming and partnerships
      • Financial results
        • Table Historic - Vodafone NZ revenue and annual change - 1996 - 2004
        • Table Vodafone NZ revenue and annual change - 2005 - 2014
        • Table Vodafone NZ annual profit and annual change - 2003 - 2014
      • Operating results
        • Table Historic - Vodafone subscriber statistics - 1998 - 2004
        • Table Vodafone subscriber statistics - 1998 - 2014
        • Table Vodafone prepaid versus postpaid subscribers - 2006 - 2014
        • Table Vodafone fixed-line broadband subscribers - 2011 - 2014
      • Company history
    • OVERVIEW OF THE 2ND TIER TELCOS
      • New Zealand's 2nd tier players squashed
      • CallPlus
        • Table CallPlus at a glance
      • M2 NZ Limited
        • Table M2 Telecommunications Group Limited (M2) at a glance
        • Table M2 NZ Limited key financial statistics overview - 2009 - 2011
      • Southern Cross Cable Network
        • Table Major submarine cable networks landing in Zealand
        • Table Cost of accessing the protected circuits of the SX cable - 2000 - 2013
      • WxC (WorldxChange Communications)
  • BROADCASTING - FTA, PAY TV, DIGITAL TV AND RADIO - INSIGHTS AND STATISTICS
    • OVERVIEW
      • Table Broadcasting statistics overview - FTA TV - 2014
    • FREE-TO-AIR TV
      • Television New Zealand (TVNZ)
        • Table Television New Zealand (TVNZ) at a glance
        • Table TVNZ Ondemand streams - 2011 - 2014
        • Table Overview of TVNZ key financial parameters - 2011 - 2014
      • Maori TV
      • MediaWorks NZ
      • Prime Television New Zealand
      • New Zealand Racing Board
    • DIGITAL FTA TV
      • Freeview
        • Table Television and Radio available as Freeview services
        • Table Freeview household viewers and penetration rate - 2009 - 2014
      • Digital TV changeover
        • Table Digital TV conversion from analogue - shutdown by region - 2012 - 2013
        • Table Percentage of digital TV households by region - 2011 - 2013
        • Table Digital TV breakup by service provider/technology -- 2010 - 2013
    • PAY AND CABLE TV (DIGITAL)
      • Market overview
        • Table Pay TV broadcasting statistics - 2008 - 2014
      • Igloo
      • SKY Network Television
        • Table SKY Network Television at a glance - 2013
        • Table SKY Network Television financial overview - 2010 - 2014
        • Table SKY Network Television operational overview - 2010 - 2013
        • Table SKY Network Television operational overview - 2010 - 2014
        • Table SKY Network Television viewing hours overview - 2010 - 2014
        • Table Historic - SKY Network Television total UHF, DBS, other subscribers - 1993 - 2004
        • Table SKY Network Television total UHF, DBS & other subscribers - 2005 - 2013
        • Table SKY Network Television average monthly ARPU - 2005 - 2008; 2013 - 2014
        • Table Historic - SKY Network Television revenue, annual change - 1997 - 2004
        • Table SKY Network Television revenue, annual change - 2005 - 2014
        • Table SKY Network Television - brief company history - 1990 - 2014
      • TelstraClear (separate report)
    • IPTV
      • Overview
      • Quickflix
      • Lightbox TV
      • TiVo
    • DIGITAL RADIO
      • Digital Audio Broadcasting (DAB)
      • Digital radio trials

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