Telco sector revenues were flat last year. IDC forecasts a slow recovery.
IDC: Telco recovery will be slow
IDC says telecommunications sector revenue was flat last year despite the impact of the Covid pandemic. Across the
sector revenues for connectivity services declined 0.1 percent in the year to June 2021.
The research company forecasts a slow post-Covid recovery. It expects a compound annual growth rate of 1.6 percent
between now and 2025.
IDC says future growth will be "driven by forecast improvements in mobile service revenue and broadband despite declines
in legacy voice, fixed data and access revenue.
“As Covid related restrictions ease IDC foresees a greater level of normalcy for the industry will resume beyond
Monica Collier, IDC Associate Research director says the industry is reinventing itself after the pandemic with a
fast-evolving shift in strategies. She sees an increased focus on collaboration, partnering and investment.
“There is increasing activity around joint ventures, partnerships, infrastructure sharing, increasing network
utilisation and new investment opportunities. The industry has historically seen assets such as network infrastructure
as a competitive differentiator, but it is now eyeballing the wider opportunities available,” she says.
IDC notes the increasing role of non-traditional players in the sector. Senior market analyst telecommunications, Wiji
Gedera says “Sky’s recent broadband market entry is another in a line of broadband entrants from other industries. These
non-traditional participants are all about churn reduction and they aren’t feeling the margin pinch like the telco
Starlink would be another non-traditional retailer.
Collier says she expects to see fresh thinking and different perspective from these competitors and that will keep the
New Zealand market on its toes.
High Court rules on broadcasters paying TDL
A new High Court judgement could see broadcasters contributing to the $10 million annual Telecommunications Development
The TDL is, in effect, a tax on larger telecommunications companies. Each pays a proportion depending on their share of
the market. Adding broadcasters to the list of payers will reduce the cost to telcos.
The 2018 amendments to the Telecommunications Act removed the exemption for broadcasting from the definition of
telecommunications. The Commerce Commission took Optus, Kordia, Sky TV and TVNZ to the High Court which has agreed their
networks can be used for telecommunications.
Telcowatch shows Spark ahead in mobile
Spark topped New Zealand’s mobile market share in the third quarter of 2021. It has a 36 percent market share, a mere
sliver in front of Vodafone which is on 35 percent.
Adding in Spark’s Skinny subsidiary’s 7 percent market share gives Spark a clear lead. Meanwhile 2degrees remains in
third place with a 22 percent market share.
Figures from Telcowatch show little in the way of quarter-on-quarter change
. If there is any noticeable change it is that Spark has opened the gap with Vodafone.
Telcowatch is a quarterly snapshot of New Zealand’s mobile market based on numbers from Datamine. The company monitors
2.9 million active mobile devices. It does not include machine to machine devices or smart meters.
Orcon broadband free to Covid-hit businesses
Orcon is offering six months free broadband to companies hit by a downturn in business due to the Covid pandemic. The
deal is worth about $500 to each company. Orcon says it is contract-free, obligation-free and available now. The offer
is open to any small business which has qualified for the Resurgence Support Payment, Wage Subsidy or Small Business
Cash Flow Loan Scheme.
Vodafone expands mobile coverage
Vodafone says it added seven new mobile sites during September. It added three Rural Connectivity Group
sites to its network and upgraded 10 existing sites. In the same period it added CAT-M1 IoT technology to 263 RCG
The new towers were mainly in the Bay of Plenty covering Te Puke South, Kawerau Town, Whakatane North West, Ohope Beach
Opotiki Town. Elsewhere there are new towers at Massey University’s main campus in Palmerston North and at Kuriwao Hill
Skinny offers six months free broadband
In a bid to woo new business, Spark’s Skinny subsidiary is offering six months free broadband for anyone signing for a
TCF trumpets price falls as inflation leaps
Statistics NZ released figures on Monday showing inflation hit 4.9 percent in the recent quarter. That’s the highest
rate in a decade.
A press release from the Telecommunications Forum timed to coincide with the figures shows prices in the
telecommunications sector are heading in the opposite direction.
In the last year prices for telecommunications equipment has dropped 2.6 percent while prices for services have fallen
0.9 percent. In the last decade equipment prices have fallen 18 percent while service costs are down 10 percent.
In other news…
A report from Spark’s Qrious unit examines the state of artificial intelligence in New Zealand
. It warns that four out of five organisations have not reached what it calls “AI maturity” and risk being left behind.
Microsoft has awarded Vodafone NZ its Gold security competency status. That’s a way of showing the telco is prepared to help Kiwi
companies stay safe online.
The NZ Herald reports Air New Zealand customers have been on the wrong end of email scams involving Airpoints.
Apple launched new MacBook Pro models.
Auckland-based network business Fastcom has acquired IT services provider Sietec NZ and its subsidiaries.
Katherine Hayward is Vodafone’s new head of customer experience. She was recently at Bank of New Zealand.