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

 

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news