New Zealand still way down in rankings for broadband usage

New Zealand continues to wallow in the basement of global broadband uptake thanks to Telecom, internet experts say.

The latest statistics on uptake within the member nations of the Organisation for Economic Co-operation and Development pegged New Zealand at 22nd out 30, unchanged from six months ago.

"This is a great shame for all of New Zealand", said Colin Jackson, president of Internet NZ. "It's sad to see us so far down in the rankings."

The OECD ranks countries by broadband subscribers per 100 inhabitants as of June. New Zealand had 283,798 subscribers, or about 6.9 subscribers per 100 inhabitants. Most are connected through Telecom or its wholesalers.

New Zealand ranked behind Spain, at 9.3, and ahead of Hungary, at 4.6, while South Korea was first again, with 25.5.

Jackson attributed the poor showing to continued high prices and low-quality services, and said it was particularly infuriating because Kiwis had typically been early adopters of new technologies. New Zealand had also had high-speed internet access longer than many other countries. "I really don't think it's a demand problem. This has got to be some kind of supply problem."

Internet experts have agreed that low broadband penetration is harming the economy by stifling technological innovation and causing international business across a variety of sectors to go elsewhere.

The OECD statistics also showed that Australia has pulled away from New Zealand by a significant margin. Six months ago, Australia ranked just ahead at 21st, but now sits at 17th with 10.9 subscribers per 100 inhabitants.

Sydney-based telecommunications analysts Paul Budde said this was because of increased competition resulting from regulations introduced in Australia last year.

"It clearly shows the difference between competition and no competition ... there's quite a diverse and vibrant wholesale competition in Australia," he said.