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New Zealanders spend more on mobile than fixed voice or broadband
Posted on 5-Apr-2012 10:18 | Tags Filed under: News

New Zealanders spend more on mobile than fixed voice or broadband
According to IDC's latest Telecommunications tracker Q4 2011, New Zealand households and businesses spent more on their mobiles than they did on both fixed voice and broadband combined in 2011. Mobile revenues grew 10% over 2010, outstripping growth in fixed broadband of 4% and countering a decline in fixed voice of -5% over the same period.

Mobile continues to be an increasingly important element of communication; not only in New Zealanders' lives but also in a telecommunication operators search for revenue growth. As noted by Glen Saunders Senior Analyst IDC.

"2011 was a year marked by significant industry change which has set the scene for even more rapid and complex developments that will impact customer mobile purchasing decisions and usage over the next 12 18 months. As we enter the UFB world the role of mobile will change and IDC is expecting convergence of the fixed and mobile worlds to be the result"

On the same day the Commerce Commission released its third mobile monitoring report, showing a continuation of the narrowing between the costs of on and off-net calls and texts indicated in early reports. The Commerce Commission says this has resulted in an increase in calling and texting between mobile networks.

Between November 2011 and January 2012, cross-network traffic increased by 2.0% for mobile calls and by 2.9% for text messages. At the same time, the price difference between on and off-net services decreased by 3.4% for mobile calls and by 3.0% for text messages. Since October 2009, cross-network texts have increased from 8.6% to 29.2%, while cross-network calls have increased from 11.4% to 20.4%.

IDC says the growth in mobile is married to an increasing diversity in the way New Zealanders connect. Q4 2011 marked the first quarter that mobile voice calls accounted for less than 50% of all mobile revenues. Fuelled by increasing smart device penetration and a wider array of available mobile applications, mobile data is providing strong growth for operators.

"This is a significant point in the market's development that is being driven by affordable smartphones, better value from all mobile companies and of course a change in the way Kiwis now do things, with more and more being done on mobile screens" says Glen Saunders.

As operators attempt to move with the shifting market, competition is increasing in the mobile space, helping to fuel further growth with a greater variety of bundles and devices for end-users.

During 2011 2Degrees continued make inroads into its competitors customer base gaining market share in terms of connections, while both Vodafone and Telecom recorded a decline. However, to date 2Degrees growth has largely been confined to the lower revenue, pre-paid market, as gains in connection share have been significantly stronger than gains in revenue.

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