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Telcowatch: Tracking NZ mobile market share

Published: Fri 24 Jan 2020 01:13 PM
Telcowatch says Vodafone is New Zealand's mobile market leader.
There's not much in it. Vodafone is one percent ahead of Spark on 36 percent.
The two were neck and neck for most of last year.
While the lead is real, it's not dramatic.
Nor is it the whole picture. The way Telcowatch measures the market means that Spark's Skinny business is counted separately from its parent company.
Adding that back into Spark's figure puts the company well ahead of Vodafone with a 41 percent market share.
However you crunch the numbers both Spark and Vodafone have a clear lead on 2degrees. The third mobile carrier's market share is stable at 23 percent. That makes it a little over half the size of Vodafone and Spark.
That's a respectable showing for the youngest mobile carrier which entered a market that was almost at saturation point. And there is no question 2degrees has reshaped the market.
It probably suits everyone concerned to count Skinny as a seperate business.
Yet Skinny is definitely a Spark brand.
When Skinny started it was more distinct from its parent than it now is.
Today Skinny's product alignment can be seen as rounding out Spark's offerings. It's a no-frills version. In supermarket terms it is PaknSave to Spark's New World.
The two share the same network infrastructure. Skinny employees may be loyal to the brand, but they are Spark employees. Spark's management decides Skinny's strategy.
Skinny remains the smallest of the four brands. In December its market share was 5.6 percent. It has been between roughly five and six percent for the last couple of years.
The most interesting aspect of the recent report from Telcowatch is not the interplay between Spark and Vodafone, but the way Skinny has been growing its market share at the expense of the parent company.
Over the last year Skinny is the best performer in terms of market share growth. It has grown gradually.
It's not hard to understand why. Despite all the fuss about 5G, the mobile phone market is mature. There's less differentiation between brands and less of a premium in Spark's brand when compared to Skinny.
There is, however, a considerable price difference. Slowly, but surely, customers are waking up to this. You can buy what amounts to the same mobile experience for less money. The big surprise is that more people have yet to realise this.
Telcowatch: Tracking NZ mobile market share was first posted at billbennett.co.nz.
Digitl
New Zealand technology news
Bill Bennett publishes technology news and features that are directly relevant to New Zealand readers.
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