KEY POINTS:
The number of broadband internet subscribers is growing and they are using faster download speeds, new information from Statistics New Zealand (SNZ) shows.
Results from an internet service provider (ISP) survey, published today, show that the non-analog, or broadband, subscribers increased 18.5 per cent to 724,600 in the six months to the end of March.
The predominant download speed for broadband subscribers had increased to be between 2 megabits per second and less than 10Mbps.
Six months earlier it was between 512 kilobits per second and 2Mbps.
The number of subscribers with download speeds between 2Mbps and 10Mbps had increased by between 150 and 200 per cent during the six months to March.
The number of broadband subscribers with a data allowance cap was down to 90 per cent, from 97.6 per cent six months earlier.
Internet Society of New Zealand (InternetNZ) executive director Keith Davidson attributed the increase in broadband subscribers to price reductions and more attractive broadband plans.
While pleased by that and the increase in predominant download speed, he said the speeds did not necessarily reflect actual download speeds being experienced by end-users.
InternetNZ remained concerned at the restrictive datacaps and slow upload speeds being imposed on New Zealanders.
Today's data showed the leading upload speed for broadband subscribers remained in the 128kbps to 256kbps category.
Mr Davidson said this country's upload speeds were "snail pace", making it difficult for subscribers to make full use of broadband applications including gaming and videoconferencing.
He was positive about the strong growth of cable broadband connections in the past year, which saw cable overtake wireless to become the third-highest subscription option in New Zealand.
Digital subscriber line (DSL) continued to be the most common broadband connection technology, with 573,900 subscribers.
Mr Davidson said DSL was a legacy technology.
"We need to see more investment in fibre infrastructure, including significant deployment of fibre-to-the-home if we are to achieve a useful broadband uptake and intelligent use this technology can bring."
Today's SNZ data show that as broadband use rose, the number of subscribers using analog, or dial-up, connection technology dropped, down 4.1 per cent to 739,700.
During the six months to the end of March, 57 ISPs were operating in this country, SNZ said.
Their 1.46 million active subscribers were up 5.9 per cent from six months earlier, but while household subscriber numbers rose 8.1 per cent to 1.24 million, business and government subscribers decreased 5.1 per cent to 220,800.
Asked about barriers to growth, 63 per cent of ISPs identified the strength of competition as the greatest barrier in the six months to March.
Other common barriers were the cost of international bandwidth, reported by 47 per cent, the regulatory environment relating to telecommunications by 42 per cent, and access to financing by 26 per cent.
The number of ISPs reporting the regulatory environment as a barrier decreased 42 per cent in the past two years, SNZ said.
- NZPA
