New entrant hits Vodafone harder

The entry of company 2degrees into the mobile telecommunications market last year appeared to take a bigger toll on Vodafone than rival Telecom.

The Commerce Commission's 2009 telecommunications monitoring report, published yesterday, estimated 2degrees had 3.8 per cent of the mobile market share at December 31.

Vodafone was estimated to have 49.6 per cent, down from 52.1 per cent at December 31 2008, while Telecom had 46.6 per cent in the latest year, down from 47.9 per cent.

The commission said it based its estimate on information from 2degrees in February that 206,000 customers were actively using its services. It puts 2degrees' estimated market share at January 31 at more than 4 per cent. Following the entry of 2degrees into the market last August, the number of mobile numbers switched to different networks each month had risen significantly, peaking at 17,313 in September.

The report said indicators suggested competition in telecommunications markets had increased between 2006 and 2009, with consumer choice and service quality improving while prices fell.

Despite the increased competition, a few large firms still had significant market shares.

Total telecommunications industry investment had continued to rise since 2006, while retail revenues had been declining, the report said.

Alternative providers of broadband services on Telecom's network had increased their market share from 24 per cent to 37 per cent in the past three years. Over the same period, broadband uptake had doubled and was now around the OECD average.

Broadband speed, availability and quality had improved.

- NZPA