Rants, Raves, Reviews


Telecom Annual Result

By Gary R, in , posted: 3-Aug-2007 16:30

The Telecom annual result was posted today for the 06/07 period. You can read the full release here

What struck me was the revenue for mobile data at $218m which is a increase of 27.5% over the previous year. Generally mobile data also ncludes SMS, music downloads and WAP so it is difficult to say exactly what the 3G data revenues were. What it does go to show is that mobile data is very much mainstream now. My company sells an EVDO router and we have definitely seen an increase in people purchasing this product for general internet access in areas where DSL is not available. The recent ComCom price determination for LLU at around $32 per line in rural areas is certainly going to also help with the growth and adoption of mobile data as a primary Internet access technology for people living outside the cities.

According to the financial report mobile voice revenues were down .8% but overall revenue growth in mobile was 5.4%, this was obviously helped along by the surge in mobile data. With total mobile revenues at $816m mobile data makes up 26.7% of the total.

Apparently DSL is starting to flatten out so I wonder if mobile data will one day be a bigger revenue stream than DSL? For the first time that I have seen, the total broadband connections of 635,000 includes not just DSL but also mobile broadband.






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Comment by Grant17, on 3-Aug-2007 17:30

"we have definitely seen an increase in people purchasing this product for general internet access in areas where DSL is not available."

In the last few days, my wireless internet in the Bay of Islands has been knocked off the air by a lightning strike. Currently I'm in Auckland while a staff member is on holiday so I'm not sure whether it is the router that has been taken out or the Airspan wireless transceiver.

Either way, it's going to be out of action for a few days after I return so it's just as well I have the Telecom EVDO network to fall back on while I organise replacement equipment. DSL is not an option as I am too far from the nearest roadside cabinet. If it wasn't for EVDO, I would be up the proverbial creek without a paddle.

I'm finding that it's just so handy to have the Sierra Wireless 595 card.

Tried it again yesterday in the Auckland Domain and was surprised that no Rev.A coverage is available yet. However, Rev.0 gets the job done for me, and I guess that the Rev.A upgrade for that area can't be too far away.


Comment by sbiddle, on 4-Aug-2007 17:44

I can't believe all the analysts who are recommending dumping Telecom shares. If anything the future of Telecom is brighter now than it has been for the past few years and there are far more positives than negatives.


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Gary R
Wellington
New Zealand


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