Mobile phone pricing competitive: report

Simon Moutter, CEO of Telecom. Photo / Chris Loufte

New Zealand's mobile phone sector is performing well on an international basis, with competitive pricing and good mobile coverage, according to a report by the New Zealand Institute of Economic Research.

The report, commissioned by Spark, found that 97 per cent of populated areas had 3G coverage, with a similar number expected to have 4G when that roll-out was completed. Prices had been declining steadily, with consumers enjoying more competitive pricing plans and value packages.

Spark chief executive Simon Moutter said the report dispelled the myth about high mobile prices and poor network coverage.

"Despite the challenges of a small population spread widely over mountainous islands, we're actually very well served by mobile technology," he said. " ... and we have coverage in less populated areas that simply wouldn't exist in many other places."

Mobile data use had grown more than 600 per cent during the past four years.

The report also highlights a number of issues facing the industry.

New Zealand's low population density and varied terrain meant having a high network coverage overall cost significantly more than in many other countries. Constrained revenues with increasing demand for mobile data and cheaper pricing, as well as the capital investment required to keep up with developments in technology, meant companies were having to make tough decisions that were expected to result in trade-offs in the future.

Moutter said the report showed a number of areas where industry discussion was needed.