Telecom sector revenues were flat last year. IDC predicts a slow recovery.
IDC: telecommunications recovery will be slow
IDC says telecommunications sector revenues were stable last year despite the impact of the Covid pandemic. Industry-wide, connectivity services revenue declined 0.1% in the year through June 2021.
The research company predicts a slow post-Covid recovery. He expects a compound annual growth rate of 1.6% by 2025.
IDC says future growth will be “driven by expected improvements in mobile and broadband revenues despite declining traditional voice, fixed data and access revenues.”
“As Covid-related restrictions ease, IDC predicts that a greater level of normality for the industry will resume beyond mid-2022. “
Monica Collier, associate research director at IDC, says the industry is reinventing itself after the pandemic with a rapidly evolving shift in strategy. She sees an increased emphasis on collaboration, partnership and investment.
“There is growing activity around joint ventures, partnerships, infrastructure sharing, growing grid usage and new investment opportunities. The industry has historically viewed assets such as network infrastructure as a competitive differentiator, but is now looking at the wider opportunities available, ”she said.
IDC notes the growing role of non-traditional actors in the sector. Senior Telecommunications Market Analyst Wiji Gedera said: “Sky’s recent entry into the broadband market is another in line with new broadband entrants from other industries. These non-traditional participants are focused on reducing churn and they don’t feel the squeeze in margins like telecom retailers ”
Starlink is said to be another non-traditional retailer.
Collier says she expects to see new thinking and a different perspective from these competitors and that will keep the New Zealand market on its toes.
The High Court rules on TDL pay broadcasters
A new High Court ruling could see broadcasters contribute to the $ 10 million annual telecommunications development tax.
The TDL is, in effect, a tax on large telecommunications companies. Each pays a proportion according to its market share. Adding broadcasters to the payers list will reduce costs for telecom operators.
The 2018 amendments to the Telecommunications Act removed the broadcasting exemption from the definition of telecommunications. The Trade Commission took Optus, Kordia, Sky TV and TVNZ to the High Court which accepted that their networks could be used for telecommunications.
Telcowatch shows Spark a lead on mobile
Spark topped New Zealand’s mobile market share in the third quarter of 2021. It has a 36% market share, a mere shine ahead of Vodafone which is at 35%.
The addition of the 7% market share of Spark’s Skinny subsidiary gives Spark a clear lead. Meanwhile, 2degrees remains in third place with a 22% market share.
Telcowatch figures show little change from quarter to quarter. If there is one notable change, it’s that Spark has opened the gap with Vodafone.
Telcowatch is a quarterly overview of the New Zealand mobile market based on data from Datamine. The company monitors 2.9 million active mobile devices. It does not include machine-to-machine devices or smart meters.
Orcon free broadband for businesses affected by Covid
Orcon is offering six months of free broadband to businesses hit by a downturn in business due to the Covid pandemic. The deal is worth around $ 500 for each company. Orcon says it’s contract-free, no-obligation, and available now. Offer open to any small business that has qualified for the Resurgence Support Payment, Wage Subsidy, or Small Business Cash Loan Program.
Vodafone expands its mobile coverage
Vodafone says it added seven new mobile sites in September. It added three Rural Connectivity Group sites to its network and modernized 10 existing sites. During the same period, it added CAT-M1 IoT technology to 263 RCG turns.
The new towers were mainly located in the Bay of Plenty covering Te Puke South, Kawerau Town, Whakatane North West, Ohope Beach Central and
Town of Opotiki. Elsewhere, there are new towers at Massey University’s main campus in Palmerston North and Kuriwao Hill in Southland.
Skinny offers six months of free broadband
In an effort to attract new business, Spark’s Skinny subsidiary is offering six months of free broadband to anyone signing a 12-month contract.
TCF trumpet price drops as inflation surges
Statistics NZ released figures on Monday showing inflation hit 4.9% in the last quarter. This is the highest rate in a decade.
A Telecommunications Forum press release scheduled to coincide with the numbers shows prices in the telecommunications sector are heading in the opposite direction.
Over the past year, prices for telecommunications equipment have fallen 2.6 percent while prices for services have fallen 0.9 percent. Over the past decade, equipment prices have fallen by 18% while service costs have fallen by 10%.
In other news …
A report from Spark
Qrious unit examines the state of artificial intelligence in New Zealand. He warns that four out of five organizations have not reached what she calls “AI maturity” and are at risk of being left behind.
Microsoft awarded Vodafone NZ its Gold Security Competency status. It’s a way of showing that the phone company is ready to help keep Kiwi businesses safe online.
The NZ Herald reports Air New Zealand customers have been on the wrong side of email scams involving airline points.
launched new models of MacBook Pro.
Auckland based network company Fastcom acquired the IT service provider Sietec NZ and its subsidiaries.
Katherine Hayward is Vodafonethe new head of customer experience. She was recently at the Bank of New Zealand.
Download 2.0 – Oct 22 – IDC Says Telecommunications Recovery Will Be Slow was first posted on billbennett.co.nz.
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