Telecommunications providers in New Zealand are shifting their focus from pure connectivity to delivering a broader suite of digital services, according to a new research note from IDC.
The findings, published in IDC’s report “Telco Wars: A New Hope,” indicate that consumers should expect an expanding range of digital products and services from telcos as they evolve beyond traditional network offerings.
IDC’s retail price tracking shows that the average monthly price for a typical unlimited fibre plan—featuring roughly 100 Mbps download and 20 Mbps upload—has declined to NZD 83.25. Promotions from providers such as Spark and Vodafone, including free months or account credits for new sign-ups, reduce the effective monthly cost to about NZD 68.40.
Monica Collier, IDC research manager, notes that intense retail competition had previously suggested imminent market consolidation, but the current trend favors strategic partnerships instead of outright consolidation.
“We have seen Vocus and Vodafone collaborate on fibre unbundling, while Spark, Vodafone and 2degrees joined forces to form the Rural Connectivity Group,” Collier explained. “Telcos are partnering at an infrastructure level to gain economies of scale, while continuing to compete in the retail market.”
IDC argues that, when executed well, initiatives such as 5G deployment and fibre unbundling are key enablers that can accelerate the shift from basic connectivity to value-added digital services.
Earlier this month, Berg Insight reported that approximately 3.2 million cellular Internet of Things (IoT) gateways were shipped worldwide in 2017, a 22% increase over the previous year. Berg Insight forecasts the cellular IoT gateway market will grow at a compound annual growth rate (CAGR) of 18.2%, reaching annual shipments of about 8.6 million units by 2023. The research also noted that North American vendors currently lead the market for cellular IoT gateways, routers and modems.
Interested in hearing industry leaders discuss these trends and share practical IoT use cases? Consider attending the IoT Tech Expo World Series events, which host conferences in locations such as Silicon Valley, London and Amsterdam and cover developments across connectivity, IoT deployment, and the expanding role of telcos in digital services.