Livewire: Increased demand for mobile plans with higher data limits has boosted revenue

Operators in the Wireless Telecommunications Carriers industry own the infrastructure that enables voice and data services, and radio and television relays to be transmitted wirelessly. The industry has grown over the past five years, benefiting from the rapid adoption of smartphones and tablets. However, strong price competition among the industry's major players has tempered revenue growth, with Spark New Zealand, Vodafone New Zealand and Two Degrees Mobile (2degrees) all competing for market share. Overall, industry revenue is expected to rise by an annualised 4.1% over the five years through 2017-18, to reach $3.2 billion. Increased demand for mobile plans with higher data limits is projected to drive revenue growth of 6.1% in the current year...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
4.1%
Forecast Growth 18-23
Profit
Employment
4,343
Businesses
64

Industry Threats & Opportunities

  • Industry players have invested heavily in upgrading the speed and coverage of their 4G networks to enhance or retain their market share
  • Wireless broadband solutions have offered network operators the opportunity to generate new revenue streams
  • Higher depreciation expenses are expected to dampen industry profitability over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The industry exhibits an extremely high market share concentration. This high concentration is largely due to the fact that most of the industry's wireless telecommunications infrastructure is owned and operated by the industry's largest three players. Spark, Vodafone New Zealand and 2degrees are expected to account for over 90% of industry revenue in 2017-18. Over the past five years, the industry has become slightly less concentrated as 2degrees, the youngest of the three major players, has significantly grown its customer base since its launch in August 2009. The industry's market share concentration is unlikely to change significantly over the next five years as a result of the higher barriers to entry...purchase to read more.

    Additional Insights for the Wireless Telecommunications Carriers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wireless Telecommunications Carriers Industry are

  • Ready access to investment funding
  • Ability to quickly adopt new technology
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Mobile telecommunications density and Net computer software capital value in the Wireless Telecommunications Carriers industry impact industry performance..

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    What's in this report

    What is the Wireless Telecommunications Carriers in New Zealand Industry?

    The industry includes businesses that operate and maintain transmission and switching facilities to deliver direct communications through airwaves. The industry also includes operators that provide wireless telecommunications network services (such as voice and data services) and those that supply and maintain equipment used to receive signals.

    Industry Products
  • Voice services
  • Data services
  • SMS and MMS
  • Handsets and equipment
  • Wireless broadband services
  • Other services
  • Industry Activities
  • Cellular telephone communication service
  • Direct-to-home satellite systems operation
  • Microwave/radio wave transmission
  • Television relay station operation
  • Radio dispatch services
  • Satellite communication services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Mobile telecommunications density
  • Net computer software capital value
  • Demand from wired telecommunications network operation
  • Real household disposable income

  • Current Performance
  • Wired to wireless
  • Growing data demand
  • Profitability and competition
  • Market share composition
  • Chart: Revenue Growth

  • Industry Outlook
  • Data consumption
  • Industry structure
  • Table: Wireless Telecommunications Carriers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wireless Telecommunications Carriers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in New Zealand

  • Key Selling Industries
  • Construction in New Zealand
  • Telecommunications Goods Wholesaling in New Zealand
  • Wired Telecommunications Network Operation in New Zealand

  • Products & Services
  • Voice services
  • Data services
  • Handsets and equipment
  • SMS and MMS
  • Other services
  • Wireless broadband services
  • Chart: Wireless Telecommunications Carriers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers
  • Small and medium businesses
  • Corporations and governments
  • Broadcasters and telecommunications firms
  • Chart: Major Market Segmentation for the Wireless Telecommunications Carriers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Wireless Telecommunications Carriers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wireless Telecommunications Carriers Industry

  • Industry Globalization
    Spark New Zealand Limited, Vodafone New Zealand Limited, Two Degrees Mobile Limited,
  • Table: Spark New Zealand Limited - financial performance
  • Table: Vodafone New Zealand Limited - financial performance
  • Table: Two Degrees Mobile Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wireless Telecommunications Carriers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wireless Telecommunications Carriers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Augmented Reality (Ar)
  • The integration of digital information with a user's environment in real time. Augmented reality uses the existing environment and overlays new information (including 3D models) on top of it.
  • Average Revenue Per User (Arpu)
  • A key performance indicator in telecommunications that indicates whether revenue is due to more customers or higher phone usage. ARPU is revenue divided by the average number of subscribers.
  • Convergence
  • A trend where fixed telephony, broadband internet and pay TV become amalgamated, with network operators and relevant infrastructure providing multiple services.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wireless Telecommunications Carriers in New Zealand market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wireless Telecommunications Carriers in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wireless Telecommunications Carriers in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wireless Telecommunications Carriers in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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