Consumers of broadband and mobile services get better value

Media Release

Issued 18 May 2017
Release No. 105

Consumers of broadband and mobile services get better value for money

New Zealand consumers are receiving increased value for money across a range of telecommunications services, the Commerce Commission’s latest annual telecommunications monitoring report has found.

Telecommunications Commissioner Dr Stephen Gale said the industry continues to change rapidly, with the continued strong growth in data consumption highlighting the importance consumers place on participating in the digital world.

“Around 74% of households now have a fixed-line broadband connection and there are 5.8 million mobile devices. Nearly all phones sold now are smartphones with internet connectivity,” Dr Gale said.

“The cost of internet use has dropped over the last year with up to four times the data included at the same price points. 100GB in a fixed-line voice and broadband plan can now be bought for $65, $10 less than a year before. At the high end, a 100Mbps fibre voice and broadband plan with unlimited data costs $90 per month, 19% less than the equivalent in Australia.

“Average broadband speeds have also been increasing thanks to a significant boost in fibre uptake, with fibre connections growing from 197,000 to 368,000 in just one year. Those moving to fibre generally get all the speed they need, while congestion is also reducing on the copper network.”

Mobile services are also very accessible in New Zealand. An entry level mobile plan with 50 minutes of calling and 100MB of data – enough for messaging and on-line banking etc – is priced at $13 per month.

“Broadband and mobile service prices in New Zealand compare favourably internationally and it is pleasing to see our telco firms being responsive to the public’s consumption habits in terms of the pricing plans they have in the market. However, telecommunications consumers report a high level of problems and we believe there is plenty of room for improvement in customer service,” Dr Gale said.

Other highlights in the report include:

· As at March 2017 the ultra-fast broadband fibre network is now passing 1.1 million homes and businesses, with 368,000 connected

· The average monthly household broadband data consumption increased from 48GB to 69GB, and is growing at 46% per year

· Mobile calling—now averaging 146 minutes per person per month—has overtaken fixed line calling

· Industry investment reduced to $1.59 billion from a record high of $1.77 billion in 2015

· Mobile revenue increased to $2.68 billion in 2016, surpassing that of fixed line at $2.53 billion

· Total telecommunications retail revenue increased for the first time in four years to $5.22 billion in 2016, up from $5.11 billion in 2015 and $5.17 billion the previous year.

The full report can be found on the Commission’s website. An infographic is also available here.

Background
Today's report is the tenth annual telecommunications market monitoring report produced by the Commission. The Commission is required under section 9A of the Telecommunications Act 2001 to monitor telecommunications markets and the performance and development of these markets.

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