by Divina Paredes

NZ fast becoming the land of digital opportunities: IDC

Oct 10, 2017
Big DataDigital TransformationMobile

“New Zealand has the second fastest fibre subscription growth rate in the OECD (Organisation for Economic Co-operation and Development) countries. Getting ahead of the rest of the world in infrastructure terms removes some of the so-called tyranny of distance for New Zealand,” says Monica Collier, research manager for telecommunications, IDC New Zealand.

“In digital terms, New Zealand has had the equivalent of a brand-new motorway network rolled out all over the country,” says Collier, as she reports on the highlights of the IDC NZ’s annual telecommunications market report.

“This creates opportunity for New Zealanders to start and run their business anywhere, even in remote towns. They can have digital marketplaces located where it makes sense for each industry whether on the farm or besides the ski-fields.”

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In digital terms, NZ has had the equivalent of a brand-new motorway network rolled out all over the countryMonica Collier, IDC New Zealand.

The report, New Zealand Telecommunications: The Streets are Paved with Glass,notes that with the investment in Ultra-Fast Fibre as well as three 4G mobile networks, New Zealand is fast becoming a land of digital opportunities.

Telecommunications retailers are shifting focus from connectivity provider to digital services provider. Innovative new digital products and services have hit the market, such as 2degrees DataClock and Vodafone’s My Flex Prepay.

“New Zealand has a reputation for being easy to do business with, having an innovative culture and high quality education,” says IDC NZ country manager Peter Wise. “Having this superb digital infrastructure across the country means New Zealand has the opportunity to get ahead of other nations and take a slice of the growing digital marketplace. We’re in a land of opportunity where the streets are paved with glass.”

End users are the clear winners, as IDC reports the highly competitive retail side of telecommunications has meant the average price for a residential 100/20 Mbps fibre with uncapped data, has fallen from NZD$119.07 per month to NZD$87.78 this year (across 16 tracked retail providers).

Innovative ways of commercialising the Internet of Things have shifted IoT from connected crockpot, to serious business opportunitiesIDC NZ

Retailers, meanwhile, are offering customers sign-up perks, account credits, streaming video subscriptions, and free TVs and gaming consoles.

But for the retail telecommunications industry, increasing input prices means margins are getting tighter. With around 92 retailers, IDC believes the industry can expect some consolidation over the next 12 months.

Meanwhile, with over 80 per cent of the Ultra-Fast Broadband 1 build complete, Chorus and the Local Fibre Providers are shifting their focus from build to grow. One in three households with access to fibre has connected and the race is on between Chorus and the LFCs and private fibre providers to win connections into business premises.

“New connections are fiercely fought for, as once an enterprise has a physical connection it is unlikely to consider changing it to another fibre provider,” the report states.

The IDC report says the Internet of Things (IoT) continues to be a hot enterprise topic. A report prepared by IDC for the NZ IoT Alliance finds just nine IoT use cases could bring in $2.2 billion to the New Zealand economy over 10 years.

Spark and Vodafone have also announced they are deploying dedicated low power IoT networks. These networks open opportunities for remote deployments that were previously not feasible.

“Innovative ways of commercialising the Internet of Things have shifted IoT from connected crockpot, to serious business opportunities,” says IDC.

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