Menu
New Zealand telco market grows by two percent

New Zealand telco market grows by two percent

The local telecommunications market grew by two percent to June 2008, and Australian telco research site BuddeComm is predicting further growth next year.

According to its latest Telecoms Overview and Analysis publication, the total market grew to $7.1 billion in the 12 months to June 2008. The site predicts the local market will grow around 2.3 percent in 2008/09 and 3.5 percent in 2009/10; although these growth rates could be up to one percent lower, depending on the global financial crisis.

The fixed-line voice market (voice calls and local access) revenues continue to decline, says the report, and has been losing overall share of the telecomms services market for some year. The fixed network voice market declined by four percent in 2007/08 to $2.53 billion.

BuddeComm predicts it will decline a further five percent in 2009/09 and six percent in 2009/10 as phone call prices and volumes continue to drop and more people give up their traditional home phone line.

The report also says data and broadband continue to be a strong market driver although broadband revenues dropped significantly compared with what was anticipated, due to weaker than expected results from Telecom.

BuddeComm also says Telecom's competitors now have more opportunity to enter the market. “Smaller competitors now have more attractive wholesale arrangements coming into place, and this will put further pressure on prices, which have historically been far too high due to Telecom’s overwhelming market dominance,” says the report.

“Despite these opportunities, there is no doubt that a weakened economy due to the financial crisis will lead to further consolidation in the telco sector, especially among the smaller fixed-line telcos/ISPs.”

According to the report, TelstraClear has been unable to gain market traction and its Australian owner Telstra will in the future show "less interest in the telco in a worsening financial crisis, as any potential investment funds earmarked for New Zealand, are diverted back to home soil".


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags buddecomm

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments