2020 Industry Report Key Trends in New Zealand Telecommunications - TCF.org.nz
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Key Trends in New Zealand Telecommunications 2020 Industry Report
About the TCF
The New Zealand Telecommunications Forum
(TCF) plays a vital role in bringing together
the telecommunications industry to resolve
regulatory, technical and policy issues.
In doing so, we enable the best possible outcomes
for New Zealand consumers. The TCF also
provides a range of services for consumers.
TCF Auckland Office
Building C, Level 1
14 — 22 Triton Drive
Albany
Auckland 0632
Phone: 09 475 0203
info@tcf.org.nz
www.tcf.org.nz
Facebook: @letstalktelco
Twitter: @TCFNZ
LinkedIn: TCF (New Zealand
Telecommunications Forum)
Contents
Foreword 02
Four key trends in New Zealand telecommunications: 04
Telecommunications is an essential enabler 05
The growing impacts of the digital divide 10
The relentless demand for data 14
Need for ongoing investment and industry sustainability 17
New Zealand Telecommunications Forum Activities 20
Key Industry Statistics 24
Our members 25
The information in this document is presented in good faith using the information available at the time of preparation (June 2020).
The TCF appointed an independent research company (Network Strategies) to undertake industry research sourced from publicly
available information. Unless otherwise referenced, all of the data in report is from the Network Strategies research. Full details on
data sources and references are listed in the full Network Strategies research report, a copy of which is available from the TCF.
While the TCF has made every effort to ensure the accuracy of this report, it takes no responsibility for any errors or omissions in
relation to the information contained herein. The TCF will not be liable to any person or organisation for any damage or loss which
may occur in relation to taking, or not taking, action in respect of any information or advice withing this report.
Front cover image: ©Visual Energy/photonewzealand. Inside front cover image: ©Paul Sutherland Photography
02 2020 TELECOMMUNICATIONS INDUSTRY REPORT
Introduction
By Geoff Thorn, Chief Executive
New Zealand Telecommunications Forum
An internet connection, a laptop, tablet or In this report we explore the current state
smartphone, a video conferencing app and of the industry and consider the future. We
an entertainment platform. For many of us, discuss four interconnecting trends:
that’s all the technology we actually needed • telecommunications is an essential enabler;
to keep earning, learning and enjoying life • the growing impacts of the digital divide;
when our country went into lockdown. • the relentless demand for data; and
During those seven weeks in Alert Levels 4 • the need for ongoing investment to
and 3 when we were confined to our ‘bubbles’, ensure industry sustainability.
almost every outside interaction – with the During COVID-19, our fixed and mobile networks
exception maybe of going to the supermarket – proved to be world-class in terms of capacity,
was enabled by an internet connection. Digital speed and reach. This is due to a decade of
activity surged as business operations moved investment, as well as the industry’s ability
from the office to the home, and education to work together in a way that is underpinned
shifted from the classroom to the living room. by a regulatory model designed to promote
It was a significant test for the competition and innovation. While the industry
telecommunications sector, and collectively the is proud of what has been achieved, we are
industry stepped up to meet unprecedented levels most excited about what lies ahead.
of demand. The importance of what the industry
does gave new meaning to the phrase ‘essential
services’ and cemented widespread recognition
that telecommunications is vital to the nation’s
wellbeing. Previous investment by the industry
- totalling about $15 billion over the past decade Geoff Thorn, CEO
– meant the country’s telecommunications New Zealand Telecommunications
infrastructure had the capacity and resilience to Forum (TCF)
serve New Zealanders well in this time of crisis.
What matters now is what comes next.
The COVID-19 pandemic has transformed
the way in which New Zealanders use digital
technologies, with the lockdown experience
awakening the possibilities for future changes
to the way we work, learn and play. It also
highlights the need to ensure that no New
Zealander is left behind, and that despite
the economic difficulties we anticipate many
households will face in the short to medium
term, we continue to bridge the digital divide.
KEY TRENDS IN NEW ZEALAND TELECOMMUNICATIONS 03
Four Key Trends in New Zealand Telecommunications
KEY TRENDS IN NEW ZEALAND TELECOMMUNICATIONS 05
1 Telecommunications
is an essential enabler
also seen huge changes. Ten
The COVID-19 pandemic showed since March 2020, especially during
just how important internet lockdown, have seen massive and years ago, most mobile users
access is to enabling people to unprecedented changes in both the communicated by voice and
earn, learn and live well. Although scale and the way New Zealanders SMS, and mobile data use was
the lockdown caused major use telecommunications services. modest. The evolution of 4G
impacts right across the New The lockdown experience has the technology since its New Zealand
Zealand economy, the situation potential to accelerate and entrench launch in 2013 has seen mobile
would have been far worse if some far-reaching changes. data become more widely used.
whole sectors of the working According to the international
population were not able to rely THE DECADE PRE industry organisation GSMA, we
on their fixed and mobile services COVID-19 now rank third in the world - after
to continue to be productive. Fibre has, in less than a decade, Australia and Singapore – for
COVID-19 is shaping up as surpassed copper to become mobile connectivity. It is an ideal
a defining moment for digital the dominant fixed broadband setting for the move to 5G, which
connectivity in New Zealand. Prior technology in New Zealand. The first is being progressively rolled out
to the pandemic reaching our phase of the Ultra-Fast Broadband since its introduction in late 2019.
shores, the telecommunications rollout was completed in December In line with international trends,
sector had experienced a decade 2019. By March 2020, almost 1.7 traditional voice services – in
during which demand for both fixed million (82%) New Zealand premises both fixed and mobile – have been
and mobile services increased had access to fibre1 and of these, declining. Residential telephone
relatively progressively – and while 966,773 (58%) were taking a fibre calls have become just a small
demand growth often exceeded service – that’s more than double fraction of total network capacity,
initial forecasts, the industry the initial take-up expectation when with many users opting for ‘over
ensured investment kept pace with the UFB rollout began in 2012. the top’ voice applications that
the expanding needs of consumers As with fixed line, mobile use data services instead of
and businesses. But the few months infrastructure and services have traditional telephony services.
UFB rollout progress and connections
1,800,000
1,350,000
Homes and businesses
900,000 Premises passed
Premises connected
450,000
0
7 18 18 8 8 19 19 9 9 20
01 20 20 01 01 20 20 01 01
r2 h e r2 r2 h e r2 r2 20
be ar
c un be be ar
c un be be rc
h
m J em m J em m a
ce M
pt ce M
pt ce M
De Se De Se De
Source: MBIE, Crown Infrastructure Partners
1. https://www.crowninfrastructure.govt.nz/wp-content/uploads/CIP-Quarterly-Report-March-2020.pdf
06 2020 TELECOMMUNICATIONS INDUSTRY REPORT
Voice traffic, fixed and mobile
16
12
Chargeable fixed voice
Minutes (billions)
Residential local calls
8
Mobile voice
4
0
/16
12
/10
/19
/11
/14
/15
/18
/13
/17
11/
10
15
18
14
09
16
13
12
17
20
20
20
20
20
20
20
20
20
20
Source: Commerce Commission
Note: In 2018/19, the Commerce Commission ceased collecting data on residential local (non-chargeable) call minutes.
MARCH TO JUNE 2020 overall data traffic has dropped but, at the time of writing, has
When New Zealand went into back, the graph below depicts moved to near to normal levels.
lockdown on 25 March 2020 two upload traffic which demonstrates Throughout the lockdown,
things became rapidly apparent that people are continuing to telecommunications companies
– demand for data skyrocketed, use productivity applications worked hard to support New
and voice calling surged. such as video conferencing. Zealanders by maintaining high
Overall data usage went up The jagged lines in this graph network resilience and connectivity,
at all hours, but in particular represent half hour breaks – in ensuring essential services
during the workday. Chorus usage line with the way video conference premises could get connected to
statistics show that during Alert calls are often scheduled. fibre, and boosting mobile cell tower
Level 4 its networks experienced Meanwhile, traditional voice capacity where it was needed.
an increase in daytime traffic calling came back into vogue – it Whatever sustained changes to
of up to 85% and an increase in was up to 70% higher compared consumer and business behaviour
evening traffic of up to 40%. While to the pre-COVID-19 baseline eventuate, the industry proved
Network Traffic - Upstream
Network Traffic - Upstream
0.30 0.29 Tbps
0.28
0.26
0.24
0.22
0.20
Traffic (Tbps)
0.18
0.16
0.14
0.12
0.10
0.08 2 March 2020 1 April 2020 4 May 2020 25 May 2020 10 June 2020
0.06 3 March 2020 2 April 2020 5 May 2020 26 May 2020 16 June 2020
9 March 2020 14 April 2020 6 May 2020 27 May 2020 23 June 2020
0.04
16 March 2020 16 April 2020 11 May 2020 2 June 2020 25 June 2020
0.02 Pre-COVID 19 Alert Level 4 Alert Level 3 Alert Level 2 Alert Level 1
0.00
12:00AM 4:00AM 8:00AM 12:00PM 4:00PM 8:00PM 12:00AM
Source: Chorus
Keeping connected at sea
Vodafone came to the rescue of
seafarers on ships in Lyttelton
Harbour during the lockdown,
ensuring they could be connected
to their loved ones.
Most ships don’t have wireless
internet, which means seafarers
would usually make shore visits to the
Lyttelton Seafarer’s Centre to use their
free WiFi. Due to lockdown restrictions,
crews could not leave their vessels.
Vodafone worked with the Lyttelton
Port Company to supply temporary
wireless broadband modems to
the ships, which connected to a
Rural Broadband Initiative (RBI)
mobile site, to bridge the distance
digitally for these sailors.
Voice calls volumes on 23 March,Lockdown
the day the Prime Minister announced
announcment voice calling (23 March)
New Zealand would be moving to Alert Level 4, versus a normal calling day
Normal voice calling (22 March)
Lockdown announcment voice calling (23 March)
Volume of voice calls
Normal voice calling (22 March)
Volume of voice calls
06:00 09:00 12:00 15:00 18:00 21:00 23:00
Time
Source: Spark
during COVID-19 that it is well and 87% of the population will able to experience data speeds
positioned to support such rapid, have access to fibre services. up to ten times faster with 5G,
fundamental shifts in society. Currently most New Zealanders can compared to 4G. 5G will deliver more
06:00 09:00 12:00 15:00 18:00 21:00 23:00
Ongoing significant investment in access speeds of up to one gigabit efficient solutions, such as real-time
new technologies will mean it can per second (1Gbps), but the next Time for businesses, and
data analysis
continue to meet the needs of New generation of fibre connectivity, usher in a whole range of exciting
Zealanders in the long term as well. already available in many areas, new technologies including virtual
In fixed line, investment in fibre boosts speeds to up to 10Gbps. learning applications, connected
connectivity continues at pace. In mobile, New Zealand operators appliances and eventually the
When the full UFB programme are busy upgrading their networks much-heralded driverless car.
completes by the end of 2022, to 5G technology. This will enable We’re well positioned to ensure
almost 400 communities and towns them to cater to the growing New Zealand businesses remain
in New Zealand will be connected demand for mobile data with users competitive on the world stage.
08 2020 TELECOMMUNICATIONS INDUSTRY REPORT
Broadband provides life-
line for Waipuna Hospice
Trustpower internet customer fibre network, enabled by funding
Waipuna Hospice, situated at from the DHB and Trustpower.
Te Puna just outside Tauranga, This fibre connection was
provides specialist palliative invaluable to Waipuna Hospice
care for patients living with a during lockdown. Although it was
life-limiting illness and support necessary to close the inpatient
services for them and their unit, and home visits were more
families. The hospice cares for restricted in frequency, it was
around 1,000 patients and their vital that the hospice was able
families each year. The hospice’s to continue to provide palliative
focus is on ‘Hospice at Home’, care and support to over 240
supporting patients and their patients and their families. Like
families so they can remain in many companies and organisations,
their own homes as long as they Zoom video conferencing was the
can. Last year their nurses made solution for the hospice team to
more than 14,320 home visits. keep in touch with patients and
When fibre was initially rolled each other. There was a steep
out in the Western Bay of Plenty, learning curve both for staff and
Waipuna Hospice’s rural position patients, most of whom were
meant that, although they are using video calling for the first
only a few minutes’ drive from time, but the hospice’s fast, stable
Tauranga’s CBD, they were not on fibre connection meant their
the roll out. Trustpower worked with vital work providing care in the
the hospice and the District Health community could continue, despite
Board to connect the hospice to the the challenging circumstances.
Trustpower worked with the Waipuna Hospice and the District
Health Board to connect the hospice to the fibre network
which proved to be vital during the COVID-19 lockdown.KEY TRENDS IN NEW ZEALAND’S COMMUNICATIONS 09
Text service delivering
the pizza
The use of automated text services we set about ensuring we could
rose during Alert Levels 4 and 3 as do so safely, including setting
they enabled organisations to send up a contactless pick-up and
rapid-response notifications and delivery system. Within 24 hours
messages to staff and customers. Vodafone was able to get us going
Vodafone set up Sal’s Authentic with a text service that meant we
New York Pizza chain with their would be able to communicate
Ready Messenger and multiTXT efficiently with customers regarding
text service to complement their orders and make sure they
their online ‘click & collect’ adhered to the government
service during Alert Level 3. restrictions around distancing and
Sal’s Pizza Managing contactless operations,” he says.
Director, Nick Turner, says the “Our ‘click & collect’ service
multiTXT service was helpful in provides our customers with a
communicating safety protocols text when their order is ready.
and customer order confirmations They show their order confirmation
under Level 3 restrictions. text at the door, making sure we
“Once we knew we were going are getting the right order to the
to be able to operate at Level 3, correct person every time.”10 2020 TELECOMMUNICATIONS INDUSTRY REPORT
2 The growing impacts
of the digital divide
With more activity taking place of the benefits of being connected to the cell sites. This is a public
online, more attention is being are also factors impacting private partnership between RCG
placed on those without ready digital inclusion. The 2019 Digital and the Crown, funded by the
access to online services. The Inclusion and Wellbeing report mobile operators themselves,
digital divide impacts people to the Department of Internal and Crown funding from the
in different circumstances for Affairs2 noted that “those with industry-wide Telecommunications
different reasons – anything internet access tend to have Development Levy and the
from geographical location, higher wellbeing and richer social Provincial Growth Fund.
economic disadvantage, age, to capital outcomes (e.g. voting) To date, the RCG has built more
a lack of knowledge, confidence than those without access.” than 100 cell towers in some of
and trust in technology. New Zealand’s most isolated
Whatever the reason, for “Solving the digital rural areas, and across rugged
households a lack of connectivity terrain where it can be difficult
means reduced access to: divide requires more to get coverage to. By March
• social connections with family,
friends and community,
than a broadband 20203, the new infrastructure
has provided broadband access
• services such as banking, connection.” to almost 46,000 households and
social services, libraries, businesses, and mobile services
job search and other The telecommunications industry to over 443km of state highway
important mechanisms, is in a unique position to support and 36 tourism hotspots, where
• education in schools, virtual Government on potential ways previously, coverage was poor
learning opportunities and to address how digital solutions or non-existent. By December
online learning for adults, can bring positive change to the 2023, the infrastructure built
• employment opportunities, groups and communities that by the RCG across New Zealand
including the ability to search are currently missing out. will see at least 84,000 rural
and apply for jobs, and homes and businesses, 1400km
• healthcare, with doctors able RURAL CONNECTIVITY of state highway and 168 tourist
to provide online consultations. The program of infrastructure destinations gain mobile and high-
The digital divide has been a investment to connect people in speed wireless broadband coverage.
challenge for many years and rural and remote geographical The UFB programme has been
although much is being done locations is ongoing. Rural coverage expanded to cover 87% of the
to close the gap, the increasing is being enhanced through the population by 2022, while all mobile
prevalence and importance of Rural Broadband Initiative Phase operators have coverage to over
online services means the negative 2 (RBI2) and the Mobile Black 97% of the population (of which
impact on those who don’t have Spot Fund (MBSF). Cell sites 95% is within 4G coverage areas).
the necessary access, skills and under both the RBI2 and MBSF These programmes are
confidence is greater than ever. are being deployed by the Rural deploying essential infrastructure
The digital divide is not an easy Connectivity Group (RCG) – a that will enable more Kiwi
problem to solve as it requires more joint venture between 2degrees, households and businesses
than a broadband connection. Cost, Spark and Vodafone – with all to access better broadband
motivation and an understanding operators having equal access services, now and in the future.
2. http://motu-www.motu.org.nz/wpapers/19_17.pdf
3. https://www.crowninfrastructure.govt.nz/wp-content/uploads/CIP-Quarterly-Report-March-2020.pdfKEY TRENDS IN NEW ZEALAND TELECOMMUNICATIONS 11 ©Paul Sutherland Photography
KEY TRENDS IN NEW ZEALAND TELECOMMUNICATIONS 13
AFFORDABILITY Zealanders in these tough times – experiencing financial hardship
One of the most vulnerable groups including working with the Ministry because of the pandemic.
in terms of the digital divide of Education on its distance learning It is important to note that for
are those on low incomes, who many New Zealanders the cost of
struggle to afford many goods and their telecommunications services
services that most of us take for
“The digital divide is lower than ever. In the twelve
granted. There are also others who has been a challenge months between December 2018 –
will experience a sudden fall in 2019, telecommunications costs as
income due to job loss or business
for many years.” measured by the Consumer Price
failure because of COVID-19. Index fell by 1.9%. By comparison
In response to COVID-19, the education package, supporting the cost of other utilities rose
industry engaged with Government customers by removing data caps – electricity increased by 1.4%,
and other stakeholders to ensure it where possible, and not charging gas by 2.5% and property rates
is responsive to the needs of New late fees or disconnecting those and related services by 4.9%.
Consumer price index: telecommunications vs utilities
1,400
1,050
Index of CPI component
700
Local authority rates and payments
Electricity
Gas
350
Telecommunication services
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Year ending December
Source: Statistics New Zealand14 2020 TELECOMMUNICATIONS INDUSTRY REPORT
3 The relentless
demand for data
New Zealanders’ appetite for data increased dramatically over
has grown steadily as the cost the past decade, with average
has decreased over the past ten monthly usage per connection
years - enabled by the evolution reaching 2.69GB in 2018/19.
in network technology in both Already at record levels, data
fixed and mobile networks, and usage surged during the COVID-19
fuelled by increasing smartphone
lockdown, rising above the brief
penetration and new applications.
peak experienced as the Rugby
In 2018/19 the average fixed
World Cup was watched via
broadband connection used
broadband streaming in late 2019.
208GB per month – just five
years earlier, the average was The graph from Chorus on the
32GB per month, representing next page illustrates the rise in
a compound annual growth fixed data usage following the
rate (CAGR) of just over 45%. move to Alert Levels 4 and 3, and
Meanwhile, mobile data the continued increased demand
usage by New Zealanders has for data during Alert Level 2.
Average data usage per fixed broadband connection
300
broadband connection (GB per month)
250
Average data usage per fixed
200
150
100
50
0
10 /11 11/
12 /13 /14 /15 /16 /17 /18 /19
9/ 10 12 13 14 15 16 17 18
20
0 20 20 20 20 20 20 20 20 20
Source: Commerce CommissionKEY TRENDS IN NEW ZEALAND TELECOMMUNICATIONS 15
Average monthly data usage per mobile connection
3.0
Data usage (GB per month)
2.0
1.0
0.0
/10 11 12 /13 /15 /16 /17 /18 /19
9 10/ 11/ 12 /14 14 15 16 17 18
20 13
200 20 20 20 20 20 20 20 20
Source: Commerce Commission
New Zealand has the fastest
uptake of fibre-optic broadband
in the developed world.
Network Traffic - Downstream
Network Traffic - Downstream
3.0
2.8 2.64 Tbps
2.6
2.4
2.2
2.0
Traffic (Tbps)
1.8
1.6
1.4
1.2
1.0
0.8
0.6 2 March 2020 1 April 2020 4 May 2020 25 May 2020 10 June 2020
3 March 2020 2 April 2020 5 May 2020 26 May 2020 16 June 2020
0.4 9 March 2020 14 April 2020 6 May 2020 27 May 2020 23 June 2020
0.2 16 March 2020 16 April 2020 11 May 2020 2 June 2020 25 June 2020
Pre-COVID 19 Alert Level 4 Alert Level 3 Alert Level 2 Alert Level 1
0.00
12:00AM 4:00AM 8:00AM 12:00PM 4:00PM 8:00PM 12:00AM
Source: ChorusMoea Minhinnick with her moko and
their new Skinny Jump modem
Getting Waiuku whānau
connected during lockdown
When the nation goes into lockdown to whānau. Through this initiative, training on how to use the modem
but your local community isn’t HTTM were able to provide a and internet connectivity.
connected, what do you do? Health subsidised broadband service to “But once they were connected,
Through The Marae in Waiuku help bridge the digital divide in New and they knew how to reach their
acted quickly to get whānau Zealand by providing an affordable moko/mokopuna nui, some people
connected to loved ones, health internet connection at home to even cried, it was massive. The
professionals and schools using those who currently go without. other big thing is affordability,
Skinny Jump subsidised broadband. Skinny Jump is a not-for-profit and many whānau had been using
Health Through The Marae (HTTM) is the result of collaboration between mobile phone data which was
is a small non-profit Māori health Spark, the Spark Foundation, more expensive, but Skinny Jump
provider delivering a range of Skinny and a network of community broadband is very affordable.”
free services including GP, mental organisations around New Zealand. Piri said that the broadband
health, podiatry, social services The service provided is $5 for 30GB connectivity will make a
and gym facilities to the marae of data (with the option to renew up huge difference to the future
whānau and wider community. for whānau in Waiuku.
HTTM supports a range of
vulnerable whānau and understands
“Broadband “Accessing health care remotely
via virtual consultations will make
first-hand the need for better connectivity will a big difference, whānau can stay
internet connectivity within their in the comfort of their own homes,
community. This was especially
make a huge be surrounded by other whānau
evident during the country’s difference to the members during consultation and
COVID-19 lockdown period when they won’t have to travel as much.
many local whānau endured future for whānau.” That’s particularly important for
financial and emotional hardship moko living with kaumātua. Now
and many were without an internet to five times a month) and comes that homes have WiFi and tamariki
connection at home. Additionally, with a free Wireless Broadband have the resources, they are able
with schools and workplaces closed, modem. Skinny Jump provided a to continue learning online. We’re
for these Kiwis this meant they lifeline during the lockdown for also working with our rangitahi
couldn’t work or study from home, local elderly and vulnerable whānau (youth) who will support and teach
further compounding inequality members in Waiuku by providing an their elders the basics of email
within these communities. essential communication service and internet use. Local whānau
HTTM worked closely with Digital to get whānau connected. are good at traditional crafts such
Inclusion Alliance Aotearoa (DIAA) Piri Minhinnick of HTTM said that as weaving, so we’re looking at
who helped them with the application a lot of whānau in Waiuku both supporting whānau to develop a web
process for Skinny Jump delivery elderly and vulnerable needed page to sell their products online.”KEY TRENDS IN NEW ZEALAND TELECOMMUNICATIONS 17
4
Significant investment during
Need for ongoing investment
and industry sustainability
and fibre broadband connections and private investment in New
the past decade has helped to experienced no significant decrease Zealand has exceeded $1.5 billion
ensure the telecommunications in download speeds during and by 2018 New Zealand ranked
networks have been able to lockdown, despite unprecedented the fourth highest country in
withstand the toughest test – demand on broadband the OECD in terms of investment
the entire country in lockdown, networks 4. Telecommunications proportional to GDP. We were
relying on telecommunication Commissioner Stephen Gale said: exceeded only by the Slovak
services for business, education “Chorus and other providers Republic, Australia and Slovenia.
and entertainment. Fixed reported record levels of online Annual investment by the
line and mobile networks are activity. But despite that increase, telecommunications industry has
complementary and enable the latest report from our consistently surpassed 20% of
ubiquitous connectivity wherever independent testing partner, annual revenue during the past
people might find themselves. SamKnows, shows that copper decade, peaking in 2009/10 and
The Commerce Commission’s and Fibre 100 plans continued 2014/15 (driven in part by 3G
Measuring Broadband New Zealand to perform well, with average and 4G mobile technology roll-
report released in May 2020, download speeds unaffected.” outs) but steadily growing again
shows that, on average, copper Since 2012/13, annual public over the past three years.
Telecommunications investment as a percentage of revenues
30%
25%
Investment (% of revenues)
20%
15%
10%
5%
0%
/10
/19
/14
/15
/16
/18
/13
/17
11
2
0/
1/1
18
14
09
16
13
15
12
17
1
1
20
20
20
20
20
20
20
20
20
20
Source: Commerce Commission, Network Strategies
4. https://comcom.govt.nz/news-and-media/media-releases/2020/independent-tests-show-nzs-broadband-performed-well-during-COVID-19-lockdown18 2020 TELECOMMUNICATIONS INDUSTRY REPORT
New Zealand telecommunications investment
2,000
1,500
Other investment
Investment ($, millions)
Mobile access network
IT systems
1,000 Wireless networks
Core and backhaul network
Fixed access network
Copper (non-fibre) access network
Fibre for access network
500
0
2009/10 2011/12 2013/14 2015/16 2017/18
Source: Commerce Commission
New Zealand telecommunications
sector investment is 4th highest in
OCED as percentage of GDP
Evolution of mobile networks
12 700
600
10
Theoretical download speed
500
8
Latency (ms)
(Gbit/s)
400
6
300
4
200
2 100
0 0
1G 2G 3G 4G 5G
(1980s) (1990s) (2000s) (2010s) (2020s)
Theoretical download speed Latency
Source: ITUKEY TRENDS IN NEW ZEALAND TELECOMMUNICATIONS 19
Predicted global M2M connections by key verticals, CAGR 2018-2023
Connected car
Connected cities
Energy
Connected home
Connected health
Connected work
Retail
Manufacturing & supply chain
0% 5% 10% 15% 20% 25% 30% 35%
CAGR 2018-2023 (%)
Source: Cisco
Whether it is fibre roll-out increasing deployment of video of economic activity, it is a
or the deployment of new applications on M2M devices, plus significant New Zealand employer
technologies, continued investment the rise in applications requiring with around 12,000 full time
in infrastructure and innovation greater bandwidth and lower employees working directly for
will remain a hallmark of the New latency – such as telemedicine telecommunications companies,
Zealand telecommunications sector. and smart car navigation systems and tens of thousands of suppliers
A key driver for ongoing – will result in M2M traffic and sub-contractors employed
investment is technological change,
and the need to continually “Continued investment in infrastructure
upgrade network capability. A good
example of this is the upgrade
and innovation is a hallmark on the New
from 4G to 5G technology which Zealand telecommunications sector.”
will enhance the user experience
through higher speeds, greater increasing at a greater rate than throughout the sector. The
capacity and lower latency. the number of connections. dramatic changes brought about
Another example of the next Cisco forecasts that globally M2M by the COVID-19 pandemic have
evolution in technology is the connections will comprise 50% of emphasised the need for all sectors
Internet of Things (IoT), enabled all networked devices by 2023, up to play their part in maintaining
by Machine to Machine (M2M) from 33% in 2018. Connected car social and economic cohesion.
connections. Traditionally M2M applications (fleet management, While individual companies
traffic has been much lower than in-vehicle entertainment, have their own corporate social
that from other devices such emergency calling) will be the responsibility initiatives, collectively
as smartphones and personal fastest growing component. the industry runs programmes
computers but this is set to The telecommunications aimed at supporting consumer
change. Cisco notes that the sector is not only a key driver wellbeing and the environment.20 2020 TELECOMMUNICATIONS INDUSTRY REPORT
New Zealand
Telecommunications
Forum activities
The New Zealand BLACKLISTING generally it is the more vulnerable
Telecommunications Forum (TCF) Mobile providers around New who are the victims. These scams
plays a vital role in bringing Zealand work together, facilitated can be perpetrated by phone, email
together the telecommunications and social media using a range of
by the TCF, to blacklist all lost and
industry to resolve regulatory, methodologies from romance fraud
stolen devices across all mobile
technical and policy issues. perpetrated over quite a long period
networks in New Zealand.
In doing so, we enable the best of time, through to identity theft
possible outcomes for New Zealand CONSUMER PROTECTION where the victim’s personal details
consumers. The TCF also provides Scams continue to be a problem are transferred to the scammer.
a range of services for consumers. for New Zealand consumers, and The industry has been workingKEY TRENDS IN NEW ZEALAND TELECOMMUNICATIONS 21
collectively to tackle scam calls. as possible can be blocked. barrier for new entrants trying
The TCF’s Code for Scam Calling In addition to blocking scam calls, to capture market share.
Prevention outlines a process the TCF is also working on a range
among the telecommunications of initiatives to block and prevent CONSUMER COMPLAINTS
providers to notify each other scam texts and prevent fraudulent All TCF members are part
of scam call incidents so they sim swaps and number porting. of the Telecommunications
can be blocked across all Dispute Resolution (TDR), a
New Zealand networks. NUMBER PORTABILITY free and independent service
As consumers report scam Number portability is an important whose aim is to help consumers
calls to a variety of different service that is managed and resolve complaints with their
organisations, the TCF has invited facilitated by the TCF. It is telecommunications providers.
a range of agencies, including recognised by regulators as a In 2019, the TDR received 2,922
Netsafe, CERTNZ, Inland Revenue, key facilitator for competition complaints and enquiries, which
the Commission for Financial because without it, consumers amounts to an average of 2.88
Capability and banks, to sign a would be forced to change their complaints and enquiries per 10,000
Memorandum of Understanding number when switching between connections per quarter5. The graph
so they can report scam calls service providers. This would below provides a comparison of
directly to the industry. This be a considerable disincentive New Zealand with Australia and
ensures that as many scam calls for switching and a fundamental Ireland for the final quarter of 2019.
Telecommunications complaints in New Zealand compared
to Australia and Ireland, October to December 2019
20
Complaints per 10,000 connections
15
10
5
0
Mobile Fixed broadband Fixed voice
New Zealand Australia Ireland
Source: Telecommunications Dispute Resolution, Telecommunications Industry Ombudsman, ACMA, ComReg
Notes: 1. New Zealand data includes complaints and enquiries, Australia and Ireland data include complaints only.
2. Ireland fixed broadband data also includes fixed voice complaints
3. New Zealand fixed voice complaints and enquiries for the December quarter is estimated from data for July - December 2019
5. https://www.tdr.org.nz/sites/default/files/field/file_attachment/TDR-Bi-Annual-Report-2019-PT-2-infograph-page.pdf22 2020 TELECOMMUNICATIONS INDUSTRY REPORT
Our not-for-profit RE:MOBILE phone recycling awareness
programme encourages New and encourage the responsible
Zealand consumers to recycle management of e-waste.
their unwanted mobile handsets, Since 2014 the following
with proceeds donated to charity has been achieved:
• over 535,200 mobile handsets
Sustainable Coastlines.
have been collected for
RE:MOBILE is New Zealand’s only
re-use or recycling,
mobile phone recycling scheme
• over $135,000 has been raised
which is accredited by the Ministry
for Sustainable Coastlines,
for the Environment. This industry- with the proceeds enabling
wide programme aims to reduce the more than 10,000 trees and
environmental impact of unwanted plants to be planted along
mobile handsets, increase mobile New Zealand waterways.
Olympian Eliza McCartney as
RE:MOBILE ambassador in 2019KEY TRENDS IN NEW ZEALAND TELECOMMUNICATIONS 23
Au
W Pd
Nd Pt
Al Ag
WHEN YOU RECYCLE YOUR
Pb Cu
MOBILE PHONE WITH RE:MOBILE, MORE
THAN 95% OF THE MATERIALS
THAT MAKE UP YOUR PHONE
Zn
Co WILL BE REUSED.
Li Sn
Ni
A TYPICAL IPHONE IS ESTIMATED TO CONTAIN APPROXIMATELY
0.034G OF GOLD AND 0.34G OF SILVER.24 2020 TELECOMMUNICATIONS INDUSTRY REPORT
Snapshot: New Zealand’s
telecommunications industry
by the numbers
100Mbps
2/3
of customers on fibre connections have services
of 100Mbps or greater
4th
highest level of telecommunications investment
in the OECD proportional to GDP
6 million
mobile connections
>100
celltowers in New Zealand’s most isolated rural areas
have been built by the Rural Connectivity Group
73,096
mobile phones recycled with RE:MOBILE in 2019
5G >10x
faster end-user speeds will be delivered by 5G,
compared to 4G
2022
is when the second phase of the Ultra-Fast
Broadband network will be completed and be
available to 87% of New Zealand premisesKEY TRENDS IN NEW ZEALAND TELECOMMUNICATIONS 25 The TCF comprises the following industry participants:
TCF Auckland Office Building C, Level 1 14 — 22 Triton Drive Albany Auckland 0632 Phone: 09 475 0203 info@tcf.org.nz www.tcf.org.nz Facebook: @letstalktelco Twitter: @TCFNZ LinkedIn: TCF (New Zealand Telecommunications Forum)
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