Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 


NZ lags global shift from fixed to mobile phone

According to the 2013 census, an increasing number of New Zealanders have switched from fixed-line phones to mobile for everyday communications.

In 2013 85.5 percent of households had a landline telephone. That's down from 92 percent in 2006. On the flip side of the equation 84 percent of households have home access to a mobile phone compared with 74 percent in the earlier census.

While there's a clear move, New Zealand is well behind overseas trends. In 2011 27 percent of European homes were without a fixed line - that's up from 18 percent in 2006. In Italy 32 percent of homes are mobile-only. Many third world countries don't have widespread fixed line home phones, but do have mobile networks.

There's something of a framing issue here. New Zealand's slow shift from fixed lines to mobile could be seen as Telecom NZ successfully defending its market in the face of mobile competition - something that overseas telcos have failed to do.

While monthly fixed cost of a landline telephone in New Zealand is relatively high by international standards, it comes with unmetered local calls unlike in many other markets. And the local call areas are relatively large - Auckland, one-third of the population - is a single call area.

The value of this bundle is questionable - consumers in other markets would have to make a huge number of calls at typical metered rates for their total telephone costs to climb above Telecom NZ's line rental charges.

As a trend, households shifting from fixed line to mobile challenges Telecom NZ's profitably - the company earns a sizeable slice of its revenue from the fixed-line network and uses it as leverage to win internet and other business. Over the medium term this is threatened by the UFB network where fibre broadband accounts are often sold as 'naked internet' that is without a conventional voice telephone account.

[digitl 2014]

digitl on Google+

© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Gordon Campbell: On The Looming Conflict Over The Iranian Nuclear Deal

Iran and the Trump administration are on a collision course over Iran’s testing of ballistic missiles, which Iran maintains are a valid part of its domestic defence planning. The US, via Trump’s national security adviser Michael Flynn, has put Iran “on notice” and imposed fresh sanctions. Undaunted, Iran has continued to test more missiles. More>>

John Quiggan: On Australia’s Flirtations With Trumpism

After the cataclysm of Trump’s election, quite a few US-based friends asked me about moving to Australia. I had, as they say, good news and bad news. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news