Telco report highlights growth of mobile and video streaming services
The Commerce Commission has today released its latest annual telecommunications monitoring report analysing the state of
New Zealand’s telecommunications markets.
Telecommunications Commissioner Dr Stephen Gale said the industry continues to change rapidly, with data consumption
accelerating and mobile calling set to overtake that on fixed lines.
“New Zealand is well served, when we compare ourselves internationally, with regard to the ability for people to
participate in the digital world – that is, to access government services, internet banking, news and social networking.
The World Internet Project reports 91% of New Zealanders consider themselves active internet users,” Dr Gale said.
“Our cheapest broadband services, at $75 per month, are 5% below OECD averages and fixed wireless broadband is available
at $55 per month in 4G areas. We are also world leaders in affordable, low-user pay-as-you-go mobile plans.”
“Contributing to economic growth, we now have numerous retail service providers marketing ultra-fast broadband on fibre.
The prices for our higher-speed higher-data fibre services are close to OECD averages and well below those in
Australia.”
As of 31 March 2016, ultra-fast fibre was available to 922,000 premises with 197,000 connected.
In the copper broadband retail market, prices are more dispersed. Wholesale broadband prices are $4 less now than 18
months ago, but the most popular voice and broadband retail bundles are generally more expensive than at that time,
albeit with higher data caps.
“The trend, globally and in New Zealand, has been for consumers to get increasingly more data for their dollar whether
via mobile or broadband plans. We wouldn’t have expected copper broadband retail bundles to be more expensive now than
they were in 2014, given the drop in wholesale costs. We are keen to better understand the drivers behind this price
rise and will keep an eye on competition in this particular market. It will pay for consumers to shop around,” Dr Gale
said.
New paid video streaming services took off in popularity from March 2015, with various retailers and Chorus reporting
significant increases in data traffic to these sites. The increased traffic noticeably slowed some broadband services at
peak times, which led to extra investment in capacity to resolve the issue.
Other highlights in the report include:
• Mobile pricing continues to be competitive. For example, a bundle with unlimited calls and 2GB of data could be
purchased in February 2016 for $59 per month, compared to $69 in August 2014
• Average broadband data consumed per connection jumped 50% in 2015, from 32GB per month to 48GB. Mobile data use
increased 70% to reach 390MB per month over the same period
• Industry investment was up to a new record of $1.77 billion in 2015
• Mobile revenue is set to exceed fixed line this year, increasing to $2.54 billion and dropping to $2.57 billion
respectively in 2015
• Total telecommunications retail revenue reduced for the third consecutive year to $5.11 billion in 2015, down
from $5.17 billion the previous year.
The Commission is seeking feedback on the Annual Monitoring Report so that we can ensure it remains relevant and useful.
A link to a survey is included in the report and all readers’ views are welcome.
Background
Today's report is the ninth annual telecommunications market monitoring report produced by the Commission. The
Commission is required under section 9A of the Telecommunications Act 2001 to monitor telecommunications markets and the
performance and development of these markets.
A lot of the data for the annual monitoring report is collected from an annual telecommunications industry questionnaire
administered by the Commission. The aggregated results from this questionnaire will also be published shortly on our
website, although some data may be withheld on commercial sensitivity grounds. The questionnaire covers the period 1
July 2014 to 30 June 2015.
ENDS