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Telecommunication market in New Zealand to grow by 5% in 2005.
Posted on 25-Jan-2005 18:53. | Tags Filed under: News.

According to Research and Markets, three players (Telecom's Xtra, TelstraClear, and ihug) will continue to dominate New Zealand's ISP market. The number of Internet users in 2004 reached 2.45 million, which represents only a 7% increase on the previous year. By late 2004, New Zealand had an estimated 900,000 Internet dial-up subscribers and 450,000 hosts. New and existing subscribers are beginning to move from dial-up to broadband as broadband prices are starting to become more competitive with entry-level prices of NZ$39.95 for 256Kb/s services.

According to a new report entitled "2005 New Zealand - Telecoms, Mobile and Broadband ", the broadband service provider market is dominated by Telecom New Zealand, with a number of players offering some resistance including ihug, TelstraClear, ICONZ and Wave Internet. Competition is mainly coming from the reselling of their Telecom's ADSL services. In late 2004, there were 165,000 broadband subscribers in New Zealand, approximately 10,000 of these were cable broadband subscribers. Competition however in broadband services still remains a problem with most competitors of Telecom merely offering a re-selling of their ADSL service. The CBDs of the major centres - Auckland, Wellington and Christchurch - are well served by a variety of broadband technologies. However, outside of these areas services are more limited.

Wireless broadband is increasingly being seen by New Zealander's as a serious alternative to fixed broadband services, usage is increasing steadily from a low base. Wireless broadband is a niche, not a mainstream market. In areas where fixed networks are economically viable, wired will always win over wireless. Woosh Wireless is currently rolling out a national network and already provides its services in Auckland, Wellington CBD and Invercargill CBD. By late 2004, there were less than 15,000 wireless Internet users in New Zealand, Woosh Wireless had close to 10,000 of these users.

The current mobile market is a duopoly of Vodafone New Zealand and Telecom Mobile. The pair operate the only cellular networks in the country. Vodafone took the number one spot in mobile subscribers in New Zealand last year and in late 2004 had 56% of the subscriber market. On the other hand, Telecom launched their 3G service (branded as T3G), from the end of 2004.

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