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freitasm

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#138172 23-Dec-2013 10:08
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Just received:


Commerce Commission releases latest retail price benchmarking for telco services

The Commerce Commission has released its third report benchmarking New Zealand retail prices for fixed-line phone and broadband services against international prices. A report benchmarking retail prices in New Zealand’s mobile markets will be published in early 2014.

Retail price benchmarking gives an indication of the competitiveness of New Zealand telecommunications markets by comparing prices paid for telecommunications services by New Zealand customers with the prices paid by customers in other OECD countries.

Most customers now buy broadband together with phone services. Prices for a bundle with 60GB of data have dropped 14 percent over the past two years. However, these bundles are still priced 30 percent higher than the OECD average.

For broadband bought without phone services – called naked broadband – New Zealand's pricing for average data consumption is more competitive. For customers with a 60GB broadband plan prices have dropped 41 percent in two years and are 4 percent less than the OECD average, however, these prices are only available to subscribers with an on-account mobile.

The pricing of residential fixed-line voice services purchased without broadband continues to be considerably higher than the OECD average for the average customer. However, competition from mobile and other services appears to have stopped Telecom from further raising its standard residential line rental, which has stayed at $50 a month since June 2011.

For heavy phone users, the story is better. Prices for this group have reduced by about a third since 2011 to a little under the OECD average. The key reason for this is Telecom’s introduction of unlimited national calling for $10 more than the standard line rental.

You can view the report, as well as previous ones, on the Commission's website at: www.comcom.govt.nz/regulated-industries/telecommunications/market-monitoring-2/telecommunications-market-reports




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freitasm

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  #956428 23-Dec-2013 10:16
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Some excerpts from the report:

"Full speed for a residential fibre broadband service is considered to be 100Mbps, and such a service would be expected to come with a generous amount of data of at least 150GB."

"On average, New Zealand broadband subscribers use 23GB of data per month, making the 30GB medium usage basket most representative of New Zealand consumers. A third of all broadband subscribers now have data caps of 50GB or more, or have no data cap at all."

"New Zealand prices for broadband plus voice bundles were always above the average of the benchmarked set of countries, although only 10% above average price for the 30GB DSL and cable basket, and also for 30GB 30Mbps fibre basket."



"New Zealand does worse in the high user 150GB broadband plus voice basket chart, shown in Figure 2, ending up close to the bottom. Again, the New Zealand benchmark was given by a Telecom plan – this time the 150GB Everyday Local Calling broadband plan at $99 (in Auckland, Wellington and Christchurch). Similarly, the Australian benchmark was again an Internode plan, while the closest plan from Telstra was Elite Liberty 200GB with a price of $NZ PPP 122."

"New Zealand’s prices for naked broadband are more competitive, being below average for the 30GB and 60GB baskets. However, the particular plans benchmarked were Vodafone plans not available to everyone. The 30GB basket used the Vodafone Choice naked DSL plan that offered 50GB over a copper line for $55 (a $30 discount) for customers with an on-account Vodafone mobile plan. An updated version of this plan is still available, and Telecom now offers a similar discount for naked broadband for customers with a mobile plan."

I suggest you folks read the report.





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