eCommerce News New Zealand logo
The latest digital commerce news for Kiwi businesses
Story image

Kiwis are switched on when it comes to telecommunications

By Ryan Morris-Reade
Thu 17 Mar 2022

The Commerce Commission says New Zealanders are switched on when it comes to telecommunications.

It says they know what they want when it comes to telecommunications, and they like new technology and the ability to use it flexibly.

"Kiwis are enthusiastic adopters of telecommunications technology," says Telecommunications Commissioner, Tristan Gilbertson. 

"In 2021, we have seen that they increasingly expect telecommunication products and services to offer high levels of flexibility alongside functionality and connectivity."

The Commerce Commission's 15th Annual Telecommunications Monitoring Report shows an increasing uptake of uncapped mobile plans and steady increases in fixed and mobile data usage. The report shows that the average amount of data used on a fixed-line connection rose from 284 GB to 330 GB per month and from 3.29 GB to 4.21 GB per month for mobile connections.

The report found that the number of copper connections dropped by 30% last year. And that most consumers coming off copper have moved to fibre, but that some are moving to wireless broadband. New Zealand has one of the highest levels of wireless broadband uptake in the OECD, with 15% of broadband connections now using this technology.

"In 2020, we noticed that COVID-19 lockdown restrictions were accelerating the growth in fixed broadband data usage," says Gilbertson. "While we have seen this trend continue, it has eased this year, with a shift towards products that enable greater flexibility in Kiwis' work, study, play, and stay connected."

In 2021, there were big jumps in the number of residential and business consumers choosing uncapped endless mobile plans, up 143% and 165% respectively on the previous year. Mobile is moving in the same direction as fixed broadband, where 79% of households are on unlimited data plans.

"We have all had to adapt our routines and lifestyles to deal with the range of disruptions and challenges created by the pandemic," says Gilbertson. "Telecommunications can go a long way to help us adapt, so the findings and trends we have seen in our monitoring report this year reflects the shifting priorities of our purchasing choices."

The Annual Telecommunications Monitoring Report measures and identifies trends in the competition, development and performance of New Zealand's telecommunications markets. The report also includes fixed broadband and mobile market share figures, largely unchanged from 2020.

The Commission says it is looking to improve the format and contents of the Annual Telecommunications Monitoring Report, ensuring that it remains relevant and fit for purpose. A consultation process to seek views will kick off later this year.

Key developments in 2021:

Mobile roaming revenue continued to fall due to travel restrictions: Ongoing border closures restricting travel led to total mobile roaming revenue dropping to $15.6 million in 2021, down 86% from 2019. Revenue from domestic customers roaming overseas fell 90% from 2019, while revenue from subscribers of overseas networks roaming in New Zealand fell 72% from 2019.

The popularity of uncapped mobile plans rose: In 2021, 42% (or 739,000) of residential on-account subscribers purchased uncapped 'endless' mobile bundles, up from 18% in 2020. Similarly, 26% (or 348,000) of business on-account subscribers purchased uncapped mobile bundles in 2021, up 10% in 2020.

Entry-level mobile plan prices dropped: The cheapest offer for an entry-level mobile plan of 50 minutes of calling and 500MB of data decreased by $2 in 2021 to $15 per month. Similarly, the cheapest offer for a mobile plan of 188 minutes of calling and 2GB of data decreased by $1 in 2021 to $27.

Fixed-line broadband data usage growth eased: Data usage by both fixed and mobile connections has continued to increase over the year. The average amount of data consumed on a fixed-line broadband connection increased from 284GB to 330GB per month. The average amount of data consumed on a mobile connection increased from 3.29GB to 4.21GB per month. However, the growth in fixed-line broadband data usage eased to 16%, compared to 2020, where growth was 37%.

Formal copper migration started: Chorus began formally withdrawing copper services where fibre is available in March 2021 by issuing the first notices under the Copper Withdrawal Code. As of 30 June 2021, Chorus had yet to withdraw any copper services but had issued 1,100 first notices and 128 further notices under the Copper Withdrawal Code.

At the same time, Spark has started progressively shutting down its Public Switched Telephone Network (PSTN) and moving customers off copper products.

The ongoing trend of customers choosing to move off copper services, combined with the start of formal withdrawal, has seen total copper broadband connections drop 30% to 308,000 in the year to 30 September 2021.

Commission 111 Contact Code came into force: From 1 February 2021, retail service providers (RSPs) have been required to tell new customers and remind existing customers that their home phones may not work in a power cut. RSPs had until 1 August 2021 to make extra support available to customers who meet the Commission 111 Contact Code criteria of a 'vulnerable consumer'.

Half of all mobile consumers remain with their provider for more than five years: A statistically significant consumer survey undertaken for the Commission found that fixed broadband customers switched providers more frequently than mobile customers. 52% of mobile customers have been with their current provider for more than five years, compared with 43% of fixed broadband customers. 

Related stories
Top stories
Story image
Microsoft
Microsoft previews Power Platform website design offering
Microsoft has announced the preview of Power Pages, the fifth product in its Power Platform family, designed for low-code makers and professional developers.
Story image
Digital Transformation
Harnessing digital innovations to maximise loyalty programmes and improve CX
When it comes to the retail sector, merchants have never had access to so many different client touchpoints and data to understand their customers better.
Story image
Infosys
Consumer relationships with digital services continues to change
Two years of pandemic-induced reliance on technology for work has altered our relationship with digital apps and services, new research has found.
Story image
Artificial Intelligence
Gartner reveals top three tech trends for banks this year
Gartner says generative artificial intelligence, autonomic systems and privacy-enhancing computation are gaining traction in banking and investment services.
Story image
Forrester
commercetools named a Leader in B2B Forrester report
commercetools has been named a Leader in The Forrester Wave: B2B Commerce Solutions, Q2 2022 report, receiving the highest scores possible in 10 criteria.
Story image
CRM
Zendesk announces new conversational CRM solutions
“The last few years have made it obvious that digital is the front door, convenience is paramount and relationships are anchored in conversations."
Story image
Cybersecurity
More than 40% of banks worried about cloud security - report
Publicis Sapient's new report finds security and the lack of cloud skills and internal understanding of business benefits are big obstacles for banks moving to the cloud.
Story image
Veryfi
Veryfi announces Mobile Receipt Capture for D2C marketing apps
Veryfi has announced a new enhancement to its portfolio, with Mobile Receipt Capture for direct-to-consumer marketing apps.
Story image
Machine Learning
Moloco launches updates to Cloud Demand-Side Platform
The latest updates focus on improving performance through intelligent budget allocation, automating workflows through smart campaign UI/UX, and ad creation.
Story image
Microsoft
FIS Modern Banking Platform now available on Microsoft Azure
FIS says the partnership will expand its digital online banking to markets like New Zealand, the United Kingdom and Thailand
Story image
Chorus
Chorus enhances West Coast infrastructure for upgraded telecoms
Chorus has announced the completion of a 250km infrastructure project set to provide the West Coast with upgraded and enhanced telecommunications.
Story image
Phishing
Google reveals new safety and security measures for users
Google's new measures include automatic two step verification, virtual cards and making it easier to remove contact information on Google Search results.
Story image
Fintech
Incumbent banks must embrace data-centric capabilities
Retail banks are lagging in their ability to offer true omnichannel experiences, as customers pivot to competitors that offer more personalised experiences.
Story image
Artificial Intelligence
Laybuy launches new AI chatbot Hugo using Ambit tech
Laybuy partners with fellow New Zealand company Ambit to launch conversational AI in a bid to support its international growth.
Story image
Adyen
Adyen expands partnership with Afterpay as BNPL payments increase
Adyen has expanded its partnership with AfterPay allowing more of Adyen’s merchants in more countries worldwide to use the BNPL provider.
Story image
SAS
New SAS service overcomes subscription fatigue for media companies
SAS has launched SAS 360 Match which helps media companies move towards a AVOD model to generate revenue as subscribers cancel.
Story image
Manhattan Associates
Shortening the click-to-customer cycle through smart technologies
Speed of delivery without accuracy is a dealbreaker for consumers. How can retailers operating in an omnichannel environment overcome the challenge of click-to-customer cycle times.
Story image
Omnichannel
Lexmark launches A/NZ first with retail publishing solution
Lexmark, a global imaging and IoT solutions leader, launched its Publishing Platform for Retail (PPR) in Australia and New Zealand.
Story image
Online shopping
A/NZ shoppers plan to spend less, be more selective
For retailers, 2022 is set to be a year of introspection as shoppers across Australia and New Zealand indicate they plan to spend less.
Story image
Lightspeed
Lightspeed launches all-in-one marketing platform in A/NZ
ECommerce provider, Lightspeed has launched a new all-in-one marketing solution, Lightspeed Marketing & Loyalty in Australia and New Zealand.
Story image
Customer experience
Research unveils precarious customer loyalty for retailers
New research has found customers are reassessing established brand loyalties as their priorities and behaviours shift.
Story image
CRM
Freshworks launches new CRM with Shopify availability
Freshworks has launched a new customer relationship management (CRM) solution, which has also been made available on the Shopify apps store.
Story image
Amazon Web Services / AWS
AWS granted OIO consent for billion dollar NZ Region project
AWS has announced that the Overseas Investment Office (OIO) has granted consent for the advancement of the new billion-dollar AWS Asia Pacific (Auckland) Region project.
Story image
HP New Zealand
HPE NZ sees $8 million decline in latest financial report
HPE New Zealand has seen a decline of over NZD$8 million in the sale of its goods year-over-year, according to its latest financial report.
Story image
CrescoData
SPS network now available to CrescoData eCommerce customers
CrescoData, a Pitney Bowes Company and PaaS business in the commerce space, says its customers can now connect to the SPS Commerce Retail Network.
Story image
Gaming
Mastercard users can now use rewards points in gaming
Mastercard has launched Mastercard Gamer Xchange (MGX), allowing APAC consumers to convert their rewards points into gaming currency.
Story image
Vodafone
Vodafone NZ buys remaining stake in retail joint venture
Vodafone New Zealand has purchased the remaining 50% stake in the specialist joint venture (JV) with private equity company Millennium Corp.
Story image
Pinterest
Pinterest partners with WooCommerce and launches app
The new app gives businesses of all sizes the power to turn their product catalogues into shoppable product pins on Pinterest
Story image
Open banking
A look at the rewards and risks of open banking - report
RiskBusiness says its report on open banking finds that while it holds much potential, financial services firms need to ensure they have robust, risk processes.
Story image
Customer experience
Dell Technologies expands edge innovations for retailers
Dell Technologies has announced the expansion of its edge solutions to help retailers quickly generate more value and deliver enhanced customer experiences.
Story image
First Table
First Table set to revive restaurant commerce in NZ with platform launch
A new restaurant booking platform has launched in New Zealand, giving Kiwi diners the opportunity to save and book at a variety of restaurants around the country.
Story image
Xero
More solutions updates and developments from Xero announced
Xero has announced a raft of new globally available solutions, features and product updates for the month of May, along with future developments soon to be rolled out.
Story image
Phishing
Retail and wholesale at significant risk of phishing attacks
New research from Zscaler has found that many retail and wholesale environments are at significant risk, with a 400% increase in phishing attacks being reported in the last 12 months.
Booster
Booster Innovation Fund. A fund of Kiwi ingenuity – for Kiwi investors.
Link image
Story image
Mobility
Hands-on review: STM laptop bags
The advent of hybrid working has meant we need laptop bags. We got our hands on two of the most popular laptop bags from STM.
Story image
Microsoft
Spark launches Microsoft Dynamics 365 upgrade across enterprise
Spark and Microsoft NZ have recently collaborated to launch Microsoft Dynamics 365 across the entire Spark business enterprise.
Story image
SaaS
Forrester Research names BigCommerce a Strong Performer
BigCommerce has announced it has been named a Strong Performer by Forrester Research in both the Forrester Wave: B2C Commerce Solutions, Q2 2022 and the Forrester Wave: B2B Commerce Solutions, Q2 2022 reports.
Story image
Marketplacer
Marketplacer and True Woo partner for wellness marketplace
Marketplacer has announced the completion of a new holistic online marketplace for True Woo, offering a range of products and services targeted at individuals seeking ways to improve their wellbeing.
Story image
Cryptocurrency
Prominent cryptocurrency trader hit by 'perfect storm'
A leading local crypto currency trading platform, BitPrime, says a "perfect storm" has hit its finances, forcing it to put a halt on operations.
Story image
Fintech
Visa chooses NZ startup for APAC Accelerator Programme
Visa has selected New Zealand payments startup Cymonz for the 2022 cohort of its Visa Accelerator Programme in Asia Pacific.
Story image
Climate change
Record growth for NZ startups as conscious investment trend emerges
New Zealand has a reputation for efficiency and innovation, and has strong potential to be a leader in climate tech.
Story image
Artificial Intelligence
SAS unveils AI experience to improve kids' batting abilities
SAS has created The Batting Lab, an interactive experience using AI, computer vision and IoT analytics to help kids improve their baseball and softball swings.
Story image
Sustainability
The AI Forum helps NZ pave the way with AI sustainability practices
Non-profit organisation The AI Forum is helping Kiwis learn about addressing climate change issues through the use of AI technology.
Story image
Amazon Web Services / AWS
Databricks strengthens AWS partnership with new Lakehouse offering
Customers will experience faster onboarding and unified account administration to make building a Databricks Lakehouse on AWS easier.