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Wednesday 7 January 2015

Fiber-Optic Broadband Initiatives and LTE Expansion to Accelerate Data Services Growth New Zealand

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‘New Zealand: Fiber-Optic Broadband Initiatives and LTE Expansion to Accelerate Data Services Growth,’ a new Country Intelligence Report by Pyramid Research, offers a precise, incisive profile of New Zealand’s mobile and fixed telecommunications and mobile markets based on comprehensive proprietary data and insights from our research in the New Zealand market.
Published annually, this presentation-quality, executive-level report provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband and mobile sectors, as well as a review of key regulatory trends.
Summary
In 2014, New Zealand will generate an estimated overall telecom service revenue of $4.3bn or 2.3% of GDP, an increase of 2.0% over the previous year. Although mobile voice is expected to be the largest revenue segment, the prime growth contributor will be the mobile data segment.
Overall service revenue will grow moderately at a CAGR of 1.0% over the 2014-2019 period, and the overall revenue split will be inclined toward mobile services (52.4% in 2019), due to revenue growth in mobile data services. 2014 saw LTE network launches or upgrades from all three of the nation’s mobile operators.
The top two operators, Spark and Vodafone New Zealand, which provide fixed, mobile and pay-TV services, account for 69.2% of total telecom service revenue in 2014. Incumbent Spark is the market leader in fixed voice and Internet segments, and the mobile segment is led by Vodafone New Zealand. Operators continue to explore new opportunities through new services launches as well as strategic partnerships and acquisitions.
Adoption of 3G technologies is expected to peak at 98.0% in 2015, after which we expect a decline as subscribers switch to LTE services. Market leader Vodafone New Zealand launched the country’s first 4G LTE services in the 1800MHz band in Auckland in February 2013. Pyramid Research expects total LTE subscriptions to reach 3.7m by 2019, owing to the strong commitment by operators to increase their 4G coverage.
The total number of fixed access lines is expected to increase marginally over 2013-2014 to reach 3.2m. Overall growth in the xDSL and FTTx segments was negated by the continued decline in the PSTN segment. High-speed broadband access services will witness increased demand. Fixed wholesale access pricing regulation is a key factor in the market and will impact fixed operators’ offers in 2015. Pyramid Research expects fiber to be the fastest-growing segment over the forecast period, growing from 6.3% of total lines in 2014 to 26.4% in 2019, driven by the government’s broadband initiatives and operators’ broadband plans.
Over the next five years, operators should seize opportunities in the LTE and FTTx space by offering data packages and bundled services over fiber for multiplay offerings. Vendors should position themselves for providing device and content services, the demand for which should increase in the coming years as the adoption of LTE services increases.

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