Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Census data shows telcos losing out to data users

Census data shows telcos losing out to data users

By Suze Metherell

Feb. 4 (BusinessDesk) – New Zealanders are following the global trend of abandoning landlines in favour of mobile phones and online communication, leaving telecommunication companies racing to find new revenue streams, said Paul Brislen CEO of Telecommunications Users Association of New Zealand.

The 2013 census shows that 81 percent, or 1.3 million New Zealand households had access to a fixed-line telephone, down from 88 percent in the 2006 census. Those with a mobile phone rose to 79 percent, or 1.2 million households, from 71 percent.

“Now people think the home phone only rings when someone is selling you something, so you are paying for something you don’t use,” Brislen said.

The latest survey shows 73 percent, or 1.1 million households had interest access, compared to 58 percent access seven years earlier. Brislen said more New Zealanders were turning to options like naked DSL or choosing line rentals which didn’t include a voice connection from their internet provider.

“Telecom is the only PSTN (public switched telephone network), which is the basic phone service line in New Zealand, they are getting nervous as that is a big revenue stream for them, and people are leaving landline use,” he said. “They still make well over $1 billion from line rentals if that tailed off they’d be really very concerned.”

Mobile phone use had reached market saturation, said Brislen, as “everyone who wants one has now got one” but it was now “a turning point for phone companies” as technology removed traditional revenue streams.

“Revenue is becoming an issue for the telecommunications, especially the mobile guys, because ‘over the top’ services are replacing the text and voice charges.”

Over the top services include iMessages or VOIP, Voice over Internet Protocol like Skype or Viber, where devices communicate using data.

Brislen said companies are at risk of becoming “a dumb pipe” or solely at data provider looking to cut costs and establish a way to differentiate themselves from their competition, as increasingly now it was “all about data”.

According to census figures 1.6 percent or 24,135 households still had no access to telecommunication systems, a drop of 15 percent on the past census. All regions saw household telecommunication access increase, except for the Marlborough region which saw a 2.3 percent decrease in access.

Fax access also dropped off sharply, down 41 percent on the 2006 figures, with less than 14 percent of New Zealand households now having access to a fax.

The next big thing they’re talking about in terms of mobile technology is the internet of things, Brislen said, where “anything with a power cord can have a chip put in it connecting it to the internet over wi-fi or mobile”.

He said cars will soon be able to report to mechanics when they’re due for a service, and that international telecommunications company Ericsson expects to see more than 50 billion connected devices by 2020.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news