The Total Telecoms Market in New Zealand Grew by 1.1% in the 12 Months to June 2007 to $7.54 Billion
DUBLIN, Ireland--(Business Wire)--Research and Markets
(http://www.researchandmarkets.com/reports/c77861) has announced the
addition of "2008 New Zealand - Telecoms Overview and Analysis" to
their offering.
For those needing detailed overviews, statistics and forecasts, as
well as objective analysis on all aspects of the New Zealand telecoms
industry, this report provides essential reading and gives in-depth
information on:
- An overall market overview, statistics and forecast
- Key players in the market
- Telecommunications infrastructure
- Regulatory developments
- Fixed network voice and VoIP markets
2008 New Zealand - Telecoms - Overview and Analysis publication
provides a detailed overview, including statistics, forecasts and
analysis, of the regulatory, infrastructure, fixed network voice and
VoIP sectors of the New Zealand telecommunications market, as well as
an overview of the key market players.
The telecoms industry in New Zealand has undergone significant
changes over the last year. While the results of these changes will
not have a significant impact on the market in the short term, they
will profoundly alter the telecoms market over the next five years.
Until late 2007, it was envisaged that the most important and positive
development was the change in attitude of the incumbent from one that
has historically provided resistance to regulatory change, to one that
is prepared to work together with the industry in a more mutually
beneficial way. Unfortunately the industry got a rude awakening in
late 2007 when Telecom launched its cabinetisation program, without a
clear transition plan for the rest of the industry.
The total telecoms market in New Zealand grew by 1.1% in the 12
months to June 2007 to $7.54 billion. Predictions that the total New
Zealand telco market will grow around 0.9% in 2007/08 and 2.8% in
2008/09. Telecom maintains a stranglehold on the local access market
in fixed-line voice and broadband.
The bundling of voice, data and video services (triple play) and
mobile services (quadruple play) are likely to develop on a more large
scale fashion in New Zealand in 2008 and 2009. We expect the local
access voice market to fall further over the next few years, as phone
call prices and volumes continue to drop and more people give up their
traditional home phone line and move to alternative access networks
such as mobile and VoIP as well as products based on data and IP-based
solutions.
Over time, the new environment will open up lots of new
opportunities for everybody involved. These include the value-added
infrastructure opportunities such as data centres, content hosting,
network management, etc. But equally a range of innovative customer
services can be built on the new wholesale products and perhaps more
importantly open networks will create a great new environment for
digital media, e-health, tele-education and smart grid applications in
which there will now be much wider scope for a variety of
organisations to participate.
In the meantime however, the outlook for competition is bleak.
There still are no attractive wholesale products and prices here are
set to increase. Vodafone/ihug is behaving as yet another monopolist
and TelstraClear has retracted to the Trans Tasman and corporate
market, showing very little industry leadership.
Annual change of total telecom market revenue by service - 2005 -
2009
Revenue source 2005 2006 2007 2008 (e) 2009 (e)
Voice 1.1% -1.8% -2.0% -4.0% -3.1%
Data, Internet & value added services 7.4% 8.2% 4.2% 2.5% 8.0%
Mobile 13.5% 8.6% 0.4% 3.2% 2.9%
Pay TV 10.9% 12.3% 12.6% 10.0% 9.0%
Other 2.8% 3.2% 1.6% 1.4% 6.7%
Total market 5.9% 4.1% 1.1% 0.9% 2.8%
Key highlights - Key players in the market
Telecom will undergo a period of transformation over the next one
to two years, as it transitions to its NGN and makes the necessary
adjustments required to implement Operational Separation. We therefore
forecast negative revenue growth of around 1% in 2007/08.
However, with the very low level of any real competition the
company will be able to maintain its position in the market with
relative high margins.
Without a new coherent overall strategy in place, TelstraClear has
drifted into a very dangerous position. The company must change its
business model and move further and deeper into marketing and sales,
utilizing the wholesale products that will increasingly become
available.
Vodafone has introduced a triple-play fixed voice, mobile and
Internet service to the market, as well as putting into place its
Fixed-to-Mobile Convergence strategy. This is great for consumers but
is undermining competition.
Kordia's purchase of Orcon, gives Orcon the opportunity to target
the small business segment with higher-end Internet, wireless access,
and voice services. Orcon will also have opportunities to move into
new areas such as IPTV, while Kordia now has the opportunity to
leverage a retail-focused ISP.
CallPlus is considering both WiMAX and ULL as technologies that
can meet its requirements. This will enable it to intersperse
MSANs/DSLAMs with WiMAX based on the economics in particular areas,
thus building independent infrastructure.
Maxnet anticipates an increased range of wholesale DSL access
options and better pricing from 2008 onwards, and will continue to
roll out new Telecom wholesale services as they become available.
Telecommunications infrastructure
The progressive introduction of ADSL2+ broadband will eventually
enable the delivery of new services on top of Telecom's broadband
infrastructure. Services delivered, by the company itself, over its
NGN in 2008 should include VoIP, video calling, converged fixed/mobile
offerings, Interactive television and VoD. This faster access will
also be critical for the growth of digital media services.
However it will take a couple of years for these services to
become widespread and it will not be until 2012 that Telecom's NGN
network will have been completed.
For the past few years the industry has seen a significant rise in
the use of wireless technologies in competition to the more
traditional copper and fibre optic-based solutions. A number of niche
fibre optic networks have also been established, but their overall
impact has been negligible.
For more information, visit
http://www.researchandmarkets.com/reports/c77861
Research and Markets
Laura Wood
Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com
Copyright Business Wire 2007
