Broadband marketing rules cut confusion

Telecommunications Commissioner notes progress as copper transition enters final stage

Telecommunications Commissioner, Tristan Gilbertson says the industry responded positively to the recently updated Broadband Marketing Guidelines.

The guidelines have been refreshed to address concerns about consumer confusion and the nation enters the last stage of moving away from the copper network.

This includes clearer descriptions of the speeds customers will see when they sign for broadband plans and a standardised ‘exit right’ which will guard against customer lock-in.

Opportunities

Gilbertson says complaints about broadband marketing have since dropped by around a third (36 percent). Despite this, he says a Commerce Commission review of the update found opportunities: “...for improvement in some areas to promote even better comparison and choice.”

“Providers have moved away from the unhelpful and confusing practice of using ‘up to’ theoretical maximum speeds and are instead using independently verified speeds from the Commission’s Measuring Broadband New Zealand (MBNZ) programme which tell consumers what speeds they're likely to get in real life.”

The guidelines say service providers should offer customers the opportunity to exit a plan if the performance does not live up to advertised claims.

Work in progress

There is still work to do here. Gilbertson says the materiality test varies between providers and wants it standardised so all consumers are treated on an equal basis and can more consistently exit without penalty if they run into performance problems.

Elsewhere the review notes that some ISPs use MBNZ speed data when describing their fibre plans, but not for their wireless broadband offering, which can look poor in comparison. He says this leaves a significant information gap for consumers.

“Speeds are very useful to consumers when comparing plans and identifying what’s right for them – so we want to make sure that peak time download and upload speeds are always provided whenever available from MBNZ.

Gilbertson also wants broadband customers to have full access to usage and spend information. This is already standard practice for mobile plans. The information helps customers check they are on the best plan for this needs. While some ISPs already do this, he would like it to be standard practice.

2degrees surges in Telcowatch market share report

2degrees registered a small (1 percent) rise in mobile market share during the third quarter of 2024. Spark and Skinny both saw small falls while One New Zealand’s share remained flat.

The challenger telco’s mobile market share has grown in each of the last four quarters. It now holds a 25 percent share of the total mobile market. This places it in the third spot, behind Spark at 33 percent and One NZ at 35 percent, though it has closed the gap.

The year’s biggest loser is Spark’s Skinny brand which dropped from having 8 percent of the market in the middle of 2023 to 6 percent today. 2degrees was at 23 percent at the time. One NZ has maintained a steady 35 percent market share since mid-2023.

The figures show slow but consistent growth for 2degrees at Spark’s expense. The smaller telco continues to win new customers. The data also suggests that Spark’s low-cost Skinny brand is struggling to maintain its appeal to cost conscious customers. This could the result of Spark’s two-brand strategy losing its potency as it fails to be price competitive at that end of the market.

One NZ’s Starlink coverage moves closer as testing beckons

One New Zealand says it is about to start testing its satellite to mobile service that will give customers connectivity in areas not currently served by its tower network.

The carrier says Starlink parent company SpaceX has obtained the permission to start testing.

CEO Jason Paris referred to Cyclone Gabrielle and the recent Florida Hurricane saying the events are a reminder of the value of having a back-up to the mobile network: “Which can be disrupted by climate-related, fibre and power outages.”

He says New Zealand will be one of the first countries to get satellite to mobile technology. “Like all new technologies we have introduced, there will be a phased rollout plan. We are working with phone manufacturers to bring the service to as many customers as possible.

NGCC appoints Greg Lowe to governance board

Next Generation Critical Communications has appointed former Beca CEO Greg Lowe as an independent member on its executive governance board. The governance board has oversight over the Public Safety Network Te Kupenga Marutau for Fire and Emergency New Zealand, Police, Hato Hone St John and Wellington Free Ambulance.

Southern Cross plans fresh low latency trans-Tasman cable

CommsDay’s lead story this morning reports on Southern Cross’s plan to built a new Tasman Express cable linking New Zealand and Australia. The submarine cable company announced the new link at the CommsDay Wholesale Congress where it also floated the idea of another trans-Pacific cable.

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Some home truths from Heather Wright who writes at iStart and talked to Emily Lynch a New Zealand Trade and Enterprise market research specialist:

One of the biggest myths which appears to have been blown out of the water is the notion that tech buyers are location-agnostic.

“Often we hear this preconception that because tech is such a weightless export, a lot of buyers are location- or origin-agnostic, and we wanted to verify whether this was accurate,” Lynch said during a recent NZTE webinar.

Just over 60 percent of respondents said a technology providers’ country of origin or location mattered to them.

“There was a little bit of nuance to this. Many said they were open to working with international or non-local providers, providing certain criteria were met.”