Telecom's share of market drops slightly

ComCom annual monitoring report shows competition in sector heating up

Telecom’s total share of the local telecommunications market fell to 57 percent last year, a loss of almost two percentage points compared with the 2008-2009 year.

That’s one of the conclusions of the Commerce Commission’s 2009-10 telecommunications monitoring report, released today.

The report, which assesses trends and developments in the telecomm sector each year, is compiled as part of the Commission’s responsibilities under the Telecommunications Act.

Other conclusions from the report are: that 61 percent of households now have fixed-line broadband; that prices for most telecomms services fell, except for fixed-line rentals; and overall revenues from all telecomms services were down slightly on the previous year, with flat mobile revenue and declining earnings from landlines.

Mobile voice call minutes increased to 4.44 billion last year, up from 4.24 billion in 2008-9.

However, local mobile use remains low compared with Australia and the UK, with New Zealanders making an average of 79 minutes of calls per month, compared with 120 in Australia and 198 in the UK.

Newcomer 2degrees won 8 percent of the mobile voice market in 2008-09, but because all its subscribers were prepaid, its overall share of voice traffic was lower.

Mobile data revenue is still dominated by text messaging, but mobile broadband revenue grew significantly with greater use of tablets and smartphones.

The full report has been posted on the Commerce Commission website.

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Tags Commerce CommissionCommerce Commission’s 2009-10 telecommunications monitoring report

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