New Zealand Communication Profile 2012

• Telecom Corporation of New Zealand
• Regulatory Environment and Spectrum
• Ultra-Fast Broadband Network
• Broadband
• Broadcasting - FTA Pay TV & Digital TV
• Digital Economy & Digital Media
• FttH Planning
• Infrastructure - NGNs and FttH

Telecom Corporation of New Zealand

Regulatory Environment and Spectrum

Ultra-Fast Broadband Network

Broadband

The NZ government has committed to partnering with the private sector to accelerate the rollout of close to $3.5 billion for an ultra-fast broadband service to 75% of New Zealanders within the next ten years. The government's $1.5 billion commitment New Zealand will create a booming ICT industry based on the services being able to be developed and delivered using the UFB. Nevertheless the current copper, 3G and cable networks will continue to provide services well into the future. Broadband uptake continued by 14% in 2009 above the OECD average, a trend that is likely to continue through to 2010/11 by which time fibre based services may be more widely available. Vodafone, TelstraClear and Telecom have all invested in VDSL2 technology and are rolling out these networks.

Broadcasting - FTA Pay TV & Digital TV

Although the dominance of Free-to-Air television as a mass communication medium has been unsurpassed for many decades, the industry is now facing challenges from a number of fronts as incumbent broadcasters cling to their lucrative oligopolies. The FTA networks are expected to see intense competition for viewers and advertising in 2009 and beyond. Pay TV penetration stands at around 45% of households, however BuddeComm doesn't see penetration growing much further unless prices come down to more affordable levels.

Digital Economy & Digital Media

Digital economy and digital media companies will play an increasingly important role in the telecommunications markets. In addition governments are realising the benefits of e-government applications, not only to cut costs but to improve processes and information flow. The New Zealand Government's commitment to a $1.5 billion ultra-fast broadband investment initiative with national targets for 97% of New Zealanders to achieve broadband speeds from their homes and businesses of at least 5Mb/s, with 91% having speeds greater than 10Mb/s, should ensure that New Zealand will have the necessary infrastructure for development of e-government, e-commerce and digital media.

FttH Planning

New Zealand is determined avoid difficulties the Australian government has had with regards to its national infrastructure. The construction of a fibre-to-the-home network in New Zealand requires a combined effort from the government and the industry. The government's proposal to provide around $1.5Bn of funding for the proposed network and the formation of local fibre companies to operate infrastructure, is a good starting point. However there is still no substantial evidence that Telecom has fully embraced the new wholesale direction that would be a key ingredient of an open access plan. It will be crucial that any plan from the government to deploy fibre-to-the-home ensures that cabinetisation is part of the roadmap. Sound and unambiguous government policies and effective regulations are required.

Infrastructure - NGNs and FttH

The term Next Generation Network (NGN) is a broad term used to describe a telecommunications network where all the information for both voice and data services is transported in data packets from any point in the network to any other location. New Zealand is currently considering major changes to policy and regulation with respect to the telecommunications industry. This report provides information and analysis of developments relating to NGN's and FttH in New Zealand - excluding the government's national fibre initiative - including details of regional and local initiatives around the country.