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Bill Bennett


New Zealand’s expensive mobile data

New Zealand’s measly fixed broadband data caps are often blamed on Southern Cross Cable Network’s  international data traffic monopoly.

That’s no excuse for the miserly amounts of mobile data offered by New Zealand’s wireless carriers.

Australians pay less. This week Virgin Mobile launched a 4G postpaid mobile broadband plan giving users 13GB of data for A$59. That works out at around NZ$5.5 per GB. A typical New Zealand plan works out at $20 for 1GB.

New Zealand’s best data plan is 2degrees’ $99 12GB data pack. That’s NZ$8.25 per GB or 50% more expensive than the Virgin Mobile price. It is only available in 2degrees’ limited broadband zones and the carrier’s data service is on ye olde worlde 3G network.

Whatever the reason for the price difference, it doesn’t come down to the amount carriers pay for spectrum. As this table from Ovum shows, New Zealand carriers paid far less proportionately for spectrum than Australian carriers.

Spectrum prices and mobile data costs

Sure, Australia is bigger so carriers have economies of scale not available in New Zealand, but that can’t be the only reason. And anyway can it mean the cost per bit is half as much again?

Our mobile carriers need to be profitable – we don’t want them to collapse. But it is hard to understand why New Zealand mobile data is so expensive. It distorts usage patterns and means New Zealanders don’t get all the benefits of mobile computing.



One thought on “New Zealand’s expensive mobile data

  1. excellent insights Bill. NZ carriers are so expensive here because a) they have remained unchallenged by real competition until 2Degrees came along and even they have a lot of sunk investment to recover; b) Telecom & Vodafone are hugely inefficient with higher than industry average cost bases which means they have to charge more to be profitable; c) the telcos have unreasonably high profit margins which they have fudged for years; d) NZ consumers are used tothe stranglehold of being over-charged for comms services, have little choice and no means to do anything about it; e) NZ comms regulation is not truly independent (everyone is scratching each others backs) and lacks the will to use what teeth it has to achieve a fair deal for consumers and businesses

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