Marketing Analysis Vodafone

New Zealand's telecommunications industry has seen signs of an upturn in 2002, and forecasts are for even better results in 2003. Telecom's dominance is coming under increasing commercial pressure from the recently merged TelstraClear and Vodafone, in the voice/data and mobile markets, respectively, as well as increasing regulatory pressure from a Telecommunications Commissioner who's already shown a willingness to favour competition. Broadband is likely to be a key area, with the government promoting and part-funding a regional expansion plan for high-speed access that will be rolled-out throughout 2003.
Telecommunications services revenue growth for 2002 showed a slight increase to 5% (up from 3% in 2000). Growth for 2003 is expected to be 7.8%.
Telecom has been severely criticised, but we see this as a positioning manoeuvre by the incumbent as it prepares to do regulatory battle over



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Telecoms share of the contestable fixed voice market has only slipped from an estimated 85.4% in 1997, to 78.8% in 2002; a further 1.2% drop is predicted for 2003.

With no significant infrastructure developments by TelstraClear, Telecom has been unchallenged and remains the dominant player in the all-important lucrative local loop market.

Telecom remains a tempting international take-over target, despite its acquisition of AAPT.

The second-tier telco market did little except keep its head above water. The new interconnect rates offer some long-term certainty, however, most of this is too little too late for them.

Despite the slow start, higher value data and broadband services are going to take off, and it is anticipated that these will be a significant revenue generator for telecom operators (90% by 2010).

Some topics in this essay:
Telecommunication, Telecommunications, Vodafone, Mobile Phone, Broadband, New Zealand, Telecommunications Services, Broadband Services, Telstra, Australia,

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