[Updated: 4th June - An interesting observation in today's New Zealand Herald. Sachio Semmoto, Japanese telecoms entrepreneur advised Helen Clark 3 years ago that New Zealand's broadband service was 'pitiful'. At the recent Japan New Zealand Partnership Forum, he said; "New Zealand will simply get killed if it does not tackle these issues swiftly and build a speedy information highway to connect to nations with which it wants to do business".
Agree. Hats doffed to Sachio.]
The value of the New Zealand telecommunications market fell by 1 per cent in the March quarter, despite subscriber growth in broadband and mobile. Telcos were finding it increasingly difficult to increase revenues, market analyst Tim Shepheard of independent research and consultancy company IDC said today.
Shepheard said the New Zealand telecom's industry continued to be under incredible political and public pressure to deliver cost effective broadband and mobile services to both consumers and businesses. "Unfortunately for service providers, subscriber growth is not being met with comparable revenue growth. The persistent concern of how to drive revenue from broadband services is an ongoing issue for telcos across the board," he said.
Maybe I have some news for Mr Shepheard and the telcos. My broadband speeds are so variable that I have almost given up expecting any consistency. That impacts on my own assumptions about what I can and cannot do with broadband. Some of the services that I might subscribe to, simply wouldn't operate in this environment.
My message is simple. Xtra speed could generate Xtra revenue.
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