Story image

Let's be known for punching above our weight - IDC releases annual telco report

11 Oct 17

IDC’s annual telecommunications report for 2017 has been released and it paints a picture of New Zealand as the land of digital opportunities.

The report, New Zealand Telecommunications: The Streets are Paved with Glass, highlights how telecommunications retailers are shifting from the connectivity provider to an all round digital services provider.

"New Zealand has the second fastest fibre subscription growth rate in the OECD (Organisation for Economic Co-operation and Development) countries. Getting ahead of the rest of the world in infrastructure terms removes some of the so-called tyranny of distance for New Zealand,” explains Monica Collier, research manager for telecommunications, IDC New Zealand.

"In digital terms, New Zealand has had the equivalent of a brand-new motorway network rolled out all over the country,” adds Collier.

Main findings from the report include:

The highly competitive retail side of telecommunications has meant the average price for a residential 100/20 Mbps fibre with uncapped data, has fallen from NZD$119.07 per month to NZD$87.78 this year (across 16 tracked retail providers).

Retailers are offering customers sign-up perks, free months, account credits, streaming video subscriptions, and free TVs and gaming consoles.

The reports states that although this is great news for the end user, the retail telecommunications industry increasing input prices means margins are getting tighter.

With around 92 retailers, IDC believes the industry can expect some consolidation over the next 12 months.

With over 80% of the Ultra-Fast Broadband 1 build complete, Chorus and the Local Fibre Providers are shifting their focus from build to grow.

According to the report, one in three households with access to fibre has connected and the race is on between Chorus and the LFCs and private fibre providers to win connections into business premises.

To conclude, Collier summarises the opportunity in telecommunications for 2017, “New Zealand has a reputation for being easy to do business with, having an innovative culture and high-quality education.”

“Having this superb digital infrastructure across the country means New Zealand can get ahead of other nations and take a slice of the growing digital marketplace.”

“We are famous for being clean and green, being strong in agriculture and tourism and having a world champion rugby team. Perhaps we can leverage some of those strengths, use the new infrastructure, and in the future become known for punching above our weight in the global knowledge economy."

To punch above their weight, IDC suggests telecommunications companies develop strategies and a deliberate approach to monetising data growth driven by our digital infrastructure.

Dimension Data nabs three Cisco partner awards
Cisco announced the awards, including APJ Partner of the Year, at a global awards reception during its annual partner conference.
WatchGuard’s eight (terrifying) 2019 security predictions
The next evolution of ransomware, escalating nation-state attacks, biometric hacking, Wi-Fi protocol security, and Die Hard fiction becomes reality.
Rimini Street hits NZ shores with new subsidiary
The third-party support provider for Oracle and SAP has opened a new Auckland-based office and appointed Sean Jones as NZ senior account executive.
Why the adoption of SAP is growing among SMEs
Small and medium scale enterprises are emerging as lucrative end users for SAP.
Exclusive: How the separation of Amazon and AWS could affect the cloud market
"Amazon Web Services is one of the rare companies that can be a market leader but remain ruthlessly innovative and agile."
HPE extends cloud-based AI tool InfoSight to servers
HPE asserts it is a big deal as the system can drive down operating costs, plug disruptive performance gaps, and free up time to allow IT staff to innovate.
Digital Realty opens new AU data centre – and announces another one
On the day that Digital Realty cut the ribbon for its new Sydney data centre, it revealed that it will soon begin developing another one.
A roadmap to AI project success
Five keys preparation tasks, and eight implementation elements to keep in mind when developing and implementing an AI service.