Overview:

For those needing detailed overviews, statistics and forecasts, as well as objective analysis on all aspects of the New Zealand Ultra-Fast Broadband Network, the broadband and Internet markets, this report provides essential reading and gives in-depth information on:

· An overall market overview with statistics and forecasts;
· Key players in the market;
· Fixed and wireless broadband;
· Internet and ISP markets;
· Digital media and the digital economy;
· The Ultra-fast Broadband Network:
  Competition and regulations;
  Design and deployment strategies;
  An overview and analysis;
  Trans-sector model thinking.
  Smart grids, smart homes and smart meters.

Executive Summary

BuddeComm’s annual publication, New Zealand - Ultra-Fast Broadband provides a detailed overview and analysis of the emerging Ultra-Fast Broadband Network. Statistics and further analysis on the Internet, broadband, Digital Economy, Digital Media and wireless broadband sectors of the New Zealand telecommunications markets are also detailed.

Broadband market

Broadband uptake continued by 14% in 2009 which was above the OECD average, a trend that is likely to continue through to 2010/11, by which time fibre-based services will be more widely available. Information on the key broadband providers as well as broadband statistics and forecasts to 2010 is detailed in the publication.

Wireless Broadband

While DSL continues to be New Zealand’s most common broadband connection type (77%), there is a notable trend toward mobile broadband connections. Over the 15-month period from March 2008 to June 2009, the number of subscribers with cellular, cable or satellite connections climbed by 53% to reach 220,000.

Broadband subscribers – annual change by technology – 2005 - 2010

Notes: ¹ Datacards, cable, and satellite subscribers.

NGNs and FttH

Information and analysis of developments relating to the current NGNs and FttH includes details of regional and local initiatives around the country. Information on VDSL2 including the launch of wholesale services by Telecom in late 2009 is also provided.

Ultra-Fast Broadband Network

The New Zealand Government has given further details on the policies it announced earlier in 2009 regarding its $1.5 billion investment in a national ultra-fast broadband network. The plan has received widespread support. Based on a wholesale-only open network the new infrastructure will set the country up for the new direction that is being taken in telecommunications - from a telephone, and in recent times an Internet network, to essential infrastructure for a range of other economic and social sectors including the development of e-government, e-commerce and digital media.

The government has also 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 commitment to New Zealand will create a booming ICT industry based on the services being able to be developed and delivered using the Ultra-Fast Broadband Network.

In this publication we draw attention to the importance of looking across sectors to create synergy. The New Zealand Government is expected to launch its trans-sector policies for the UFB. We discuss a new approach, which applies across infrastructure projects, and look at the potential synergies between the building of roads, sewerage systems, water and gas pipe networks, as well as telecoms and electricity networks.

Digital Economy and Digital Media

Digital economy and digital media companies are playing an increasingly important role in the telecommunications markets. An overview on the digital economy and digital media markets in 2009, including updates and information on the e-health and e-learning markets. A snapshot of the current status of the smart grid market, smart homes and smart meter debate is provided with information on renewable energy products and where the market may trend in 2010. Information on the latest offerings in the mobile TV market is highlighted.

1. Broadband Market

1.1 Overview

1.1.1 Fibre based services

1.1.2 The ISP market

1.1.3 Number of ISPs by download speed and size

1.2 Statistics and forecasts

1.2.1 Total market

1.2.2 Telecom New Zealand broadband statistics

1.3 Service providers

1.3.1 Airnet

1.3.2 CallPlus

1.3.3 ICONZ

1.3.4 Maxnet

1.3.5 Orcon Internet

1.3.6 Snap Internet

1.3.7 Telecom

1.3.8 TelstraClear

1.3.9 Vodafone

1.3.10 WorldxChange

2. Infrastructure - NGNs and FttH

2.1 Market overview

2.2 Network access technologies

2.2.1 Fibre optics

2.2.2 Copper cables

2.2.3 VDSL2

2.2.4 Internet Peering Exchanges

2.2.5 Wireless networks

2.3 Local and Regional network initiatives

2.3.1 Auckland City Council - broadband strategy

2.3.2 Aurora Energy Limited (Dunedin)

2.3.3 CityLink Fibre Network

2.3.4 Counties Power (Pukekohe)

2.3.5 Digital Nation (Palmerston North)

2.3.6 Enable Networks (Christchurch City Networks Ltd)

2.3.7 Gracefield Village FttH project

2.3.8 Inspired Networks - Palmerston CBD network

2.3.9 InverNET (Invercargill)

2.3.10 Kaiuma Park Estate FttH project

2.3.11 Network Tasman

2.3.12 NorthPower (Whangarei)

2.3.13 Smartlinx3

2.3.14 Vector Communications

2.3.15 Velocity Networks - Hamilton City network

2.4 Regional Backbone network initiatives

2.4.1 FX Networks

2.4.2 Northland Regional Council and Kordia

2.4.3 Gigabit wireless network

2.5 Fibre-enabled communities

2.5.1 Overview

2.6 International network developments

2.6.1 Australia-New Zealand cable - PPC-2

2.6.2 Kiwi Advanced Research and Education Network (KAREN)

2.7 Telecom’s Next Generation network (NGN)

2.7.1 Introduction

2.7.2 The original NGN plan

2.7.3 FttN network and cabinetisation plan

2.7.4 Network rollout milestones to 2011

2.7.5 Greenfield FttN program

2.7.6 IP nationwide network

2.7.7 Capital expenditure on new systems

2.8 Telstraclear’s network

2.8.1 Network overview

3. Ultra-Fast Broadband Network

3.1 Overview and analysis

3.1.1 Key details of the government’s plans

3.1.2 BuddeComm high-level analysis

3.1.3 Broader economic and social benefits

3.1.4 Crown Fibre Holdings (CFH)

3.1.5 The backbone network

3.1.6 The role of Telecom

3.2 Competition and regulations

3.2.1 Regulatory issues

3.2.2 Competition models and opportunities

3.2.3 Quo vadis?

3.3 Design and deployment strategies

3.3.1 Open network = innovation and affordability

3.3.2 Technology critical consideration

3.3.3 Basic infrastructure

3.3.4 The copper network

3.3.5 FttH infrastructure

3.3.6 Architecture and design

3.3.7 Pricing issues

3.3.8 Wholesale

3.3.9 Deployment strategies

3.3.10 How to measure the socio-economic benefits

3.4 Trans-sector model

3.4.1 Introduction to the concept

3.4.2 Early trans-sector projects

3.4.3 Productivity measure based on a lack of appropriate input - analysis

3.4.4 A matter of leadership

3.4.5 We lack the structures to implement trans-sector visions

3.4.6 Multiplier effect for the UFB

3.4.7 Trans-sector regulation

4. Wireless Broadband Market

4.1 Major providers

4.1.1 Overview

4.1.2 WiFi

4.1.3 WiMAX

4.1.4 Satellite

4.1.5 Compass Communications

4.1.6 Kordia

4.1.7 National Communications Corporation

4.1.8 nzwireless

4.1.9 Swiftnet Ltd

4.1.10 RoamAD

4.1.11 TelstraClear

4.1.12 thepacific.net

4.1.13 Woosh Wireless

5. Digital Economy and Digital Media

5.1 The digital economy - key market driver in the telco market

5.2 Policies and infrastructure

5.2.1 The Ultra-Fast Broadband network - a base for the future

5.2.2 Missing: trans-sector policies - BuddeComm analysis

5.2.3 Previous government initiatives: Digital Strategy 2.0

5.2.4 New Zealand’s current broadband network

5.3 Digital economy in New Zealand

5.3.1 Overview

5.3.2 E-commerce in New Zealand

5.3.3 E-health

5.3.4 E-learning

5.3.5 Smart meters/smart grids

5.4 Digital media

5.4.1 IPTV (DSL TV)

5.4.2 Mobile TV

5.4.3 Internet portals

5.4.4 Social networking

6. Glossary of Abbreviations

List of Tables and Exhibits

Table 1 - Estimated number of ISPs, users, subscribers & penetration rate - 2000 - 2010

Table 2 - Internet subscriber revenue market share by segment - 2006 - 2009

Table 3 - Market percentages of ISPs by size - 2007 - 2009

Table 4 - Internet subscribers by download speed - 2007 - 2009

Table 5 - Total residential broadband subscribers by major provider - 2005 - 2009

Table 6 - Annual change of residential broadband subscribers by major provider - 2005 - 2009

Table 7 - Broadband subscribers - wireless and fixed-line access - 2003 - 2010

Table 8 - Broadband subscribers by technology - 2007 - 2010

Table 9 - Broadband subscribers - annual change by technology - 2005 - 2010

Table 10 - Broadband penetration - wireless and fixed-line access - 2005 - 2010

Table 11 - Telecom retail and wholesale broadband subscribers - 1999 - 2009

Table 12 - Telecom broadband ADSL subscribers (residential, business) and (wholesale, retail) - 2005 - 2009

Table 13 - FttH communities in New Zealand (summary only) - 2008

Table 14 - Woosh Wireless subscribers - 2005 - 2009

Table 15 - Woosh Wireless subscribers by service - 2008 - 2009

Table 16 - Woosh Wireless revenue - 2004 - 2006; 2008

Table 17 - Woosh Wireless profit/(loss) - 2004 - 2006; 2008

Exhibit 1 - Telecom broadband connections and revenue - 2007 - 2009

Exhibit 2 - List of active and proposed FttH communities in New Zealand - 2009

Exhibit 3 - The rise and fall of renewable energy use in New Zealand - 1987 - 2025

Exhibit 4 - Case study - Duelling Banjos Vineyard, Marlborough - 2009