A new market research report for the telecoms sector in New Zealand has been released on the website companiesandmarkets.com. The title for the publication is “2009 New Zealand – Telecoms and Overview & Analysis” and the executive summary can be found here.
The report provides a great deal of insight into the telecoms sector in New Zealand. It finds that the total New Zealand market grew by 2% to $7.1 billion for the year up to June 2008. BuddeComm predicts that the total New Zealand telco market will grow around 2.3% in 2008/09 and 3.5% in 2009/10, although these growth rates could be up to 1% lower, depending on the severity of the global financial crisis.
New Zealand and the United Kingdom are the only countries in the world that have enacted functional separation as a regulatory tool. Citing many of the same reasons given on this site, the report states emphatically that implementation of this regulatory measure has benefitted users in New Zealand tremendously:
Even Telecom New Zealand has itself admitted that functional separation has already begun to stimulate competition in New Zealand. Existing participants now have the opportunity to extend their activities, and additional competitors now have more opportunity to enter the market which has previously been dominated far too much by Telecom. Smaller competitors now have more attractive wholesale arrangements coming into place and this will put further pressure on prices, which have historically been far too high due to Telecom’s overwhelming market dominance.
In Fiji, it’s FINTEL’s dominance over the international gateway that most closely resembles our New Zealand counterparts. The first stages of sharing under liberalisation are being implemented. However, until the prescription of functional separation is handed down from regulators, we will not reap the kind of benefit that New Zealand is experiencing now. Interestingly, even the incumbent operator in NZ acknowledges that the regulatory measure has been a positive development. How long before we see these steps being taken in Fiji?