Report shows consumers are getting more for their money

Telco report shows that consumers are getting more for their money

Issued 21 May 2014
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The Commerce Commission today released its latest annual telecommunications monitoring report analysing the state of New Zealand’s telecommunications markets.

“A trend which has become more obvious this year is that telecommunications services are delivering more to consumers for less cost. Spending on telecommunications services is about the same in real terms as it was 10 years ago, but consumers are getting far more – data, texts and calling minutes – for their money, particularly in the mobile market,” said Dr Stephen Gale, Telecommunications Commissioner.

“We’ve also seen a steady increase in online activity by New Zealanders. This demand is driving improvements in both personal and business communications as well as education, health and entertainment. Online services that are large and growing include internet banking, social networking, online purchasing and health services,” said Dr Gale.

There were a number of other key findings of the report.

• Industry investment increased significantly from a recent low of $1.24 billion in 2010/11 to $1.58 billion in 2012/13. This increase was largely driven by the ultra-fast broadband fibre network roll-out.
• Fixed broadband connections continued to grow from 1.24 million to 1.32 million in the year to 30 June 2013. Now, about 85% of households have broadband, up from 65% three years earlier.
• Fixed-line calling volumes continue to fall, while mobile calling volumes are increasing. Total mobile minutes grew to 83 minutes per person per month, while fixed-line calling declined to 401 minutes per household per month.
• Total retail telecommunications revenues suffered a slight fall in 2012/13 to drift back to $5.21 billion from $5.25 billion in the prior year. Data revenues continue to rise while voice related revenues continue to fall.
The report can be found at www.comcom.govt.nz/regulated-industries/telecommunications/monitoring-reports-and-studies/monitoring-reports

An info graphic is attached to this media release for further information.

Background
Today's report is the seventh annual telecommunications market monitoring report produced by the Commission. It is part of the Commission's on-going monitoring of the evolution of competition in the telecommunications sector in New Zealand.

Telecommunications markets are complex and a range of indicators have to be analysed to provide an indication of the overall state of competition.

A lot of the data for the annual monitoring report is collected from an annual telecommunications industry questionnaire administered by the Commission. The aggregated results from this questionnaire are also published, although some data is withheld on commercial sensitivity grounds.

This report is released under section 9A of the Telecommunications Act 2001, which requires the Commission to monitor telecommunications markets and make available reports, summaries, and information resulting from carrying out these functions.

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