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Download Weekly: ComCom green lights mobile market study

Download Weekly: ComCom green lights mobile market study
Photo by Portuguese Gravity / Unsplash

The Commerce Commission says its study of mobile market competition will go ahead.

Earlier this year Communications Minister Simon Bridges wrote to the Commerce Commission asking it to investigate competition in the mobile market.

In the Commerce Commission's words the study aims to "better understand how mobile markets are developing and performing, particularly around the competitive landscape and any emerging competition issues".

Where are the mobile virtual networks?

Bridges noted that, unlike many other countries, New Zealand does not have thriving mobile virtual network operators.

MVNOs are a feature of many mobile markets around the world. Often run by well-known consumer brands, MVNOs buy wholesale services on existing mobile networks, then sell them to customers without needing to invest in infrastructure.

They can increase competition and give consumers greater choice.

Fixed mobile convergence

The regulator also mentioned an interest in investigating "fixed-mobile convergence" — a reference to the fixed wireless broadband services offered by Spark and its subsidiary, Skinny.

The commission says it plans to work with the industry before finalising the scope of the study.

In July the Commerce Commission said retail telecommunications would be one of its priorities for 2017-18.

Carriers not keen on market survey

The mobile carriers appear unimpressed. Spark says there is no case for new mobile regulation.

The company's general manager regulatory affairs John Wesley-Smith is quoted in a notice to the NZX on the study. He says: "We have three world class networks delivering prices that are well below OECD averages and three mobile network operators that are ploughing significant investment into an intensely competitive market."

However, last month the NBR carried a report saying Vocus general manager, consumer Taryn Hamilton believes his company cannot grow its mobile business without regulatory intervention. Vocus has an MVNO agreement with Spark.


Air NZ testing WiFi

Air New Zealand says it is testing in-flight WiFi on one of its aircraft. It plans to put WiFi in more planes in the coming months. For now it is working on WiFi to long haul aircraft in its international fleet.

The WiFi service uses Inmarsat's global network of satellites and in-cabin technology from Panasonic Avionics. Air New Zealand

Air New Zealand says it will charge for the service, but has yet to decide on prices.

The trial will be used to get customer feedback before Air New Zealand makes its in-flight WiFi more generally available .

Air New Zealand chief digital officer Avi Golan says: "The trial will not only test the technical aspects of the service, it will also gather feedback on pricing options. Customers will be able to choose to sign up for different timeframes and have the ability to pay in a variety of ways, including with Airpoints Dollars."


Three out of four young NZ adults stream movies

Horizon Research says 77 percent of younger New Zealand adults view movies online using either on a mobile or a TV. The survey looked at the habits of 18 to 24 year olds. It asked them if they had streamed content in the last month. Music is also popular with 58 percent streaming.

After movies and music, some 32 percent of young adults watched streamed documentaries and drama. Sports was watched by 29 percent and 27 percent watched news. Only seven percent said they are not streaming.

You Tube and Netflix are the most popular. They are used by 79 and 70 percent respectively. TVNZ on demand is watched by 40 percent.


Iridium testing new global satellite broadband

Iridium says it has started live testing of its Certus broadband service. The test included uploading and activating software on satellites in orbit. The company is in the process of launching satellites and plans to have 66 operational next year. When the network first starts it will operate at 1.4Mbps. Iridium's focus is on providing global internet services to ships and planes.


Megaport opens in Wellington

Pay-per-use network provider Megaport has added a Wellington datacentre. The Wellington datacentre allows customers in the area to connect to public and private cloud services around the world. Megaport says it connects to 270 service providers including the big cloud players: Microsoft, Google, Amazon Web Services, Oracle and Alibaba.


OTT video market set to rise in APAC region

Analytics company GlobalData says Asia-Pacific's over-the-top video market is set to grow. It puts this down to faster bandwidth, growing 4G coverage, improving payment options, lower data costs and rising incomes. GlobalData says mobile is important in many Asia-Pacific countries because they have poor fixed network infrastructure.