Entertainment & Media Outlook 2011-2015 - PwC

Fast broadband, 4Gservices to drive growthThe Government’s goal was to deliveron its UFB program within ten years,commencing in 2009. As constructionof the infrastructure and roll-out ofthese services is set to continue instages throughout our forecast periodwe expect the impact will start tohave a significant flow-through tothe market, in terms of subscribernumbers and demand for services,from 2014/2015 onwards. At this pointthe Minister for Communications andInformation Technology has indicatedthat 90 percent of businesses, aswell as schools and hospitals, will beconnected to UFB. 4Over the next five years, we forecastsignificant growth in mobile internetconnections driven by risingownership of mobile devices includingsmartphones and tablets and apotential rollout of 4G services in thesecond half of our forecast period.4G refers to the fourth stage of mobilebroadband in which networks allowmobile devices to exchange data at100 Mbps, according to the InternationalTelecommunication Union. In contrast,the 3G or third generation networkwhich now carries the services of allthree major mobile phone providersoffers data speeds of 1.4-3.0 Mbps.Price might inhibit take-up, accordingto the Commerce Commission, whichcites the cost of mobile data plans as alimiting factor in the medium term. 5The switch-off of analogue televisionservices from 2013 will allow 4Gnetworks to be rolled-out on the newlyavailable spectrum. This will enable asignificantly faster mobile broadbandservice, potentially boosting demandfor services such as mobile television.Vodafone is reportedly ‘well advanced’in its plans to build a 4G network by theend of 2013. 6The switch-off ofanalogue televisionservices from2013 will allow 4Gnetworks to be rolledout on the newlyavailable spectrum.This will enable asignificantly fastermobile broadbandservice, potentiallyboosting demandfor services such asmobile television.4 ‘Schools, hospitals first in line for ultra-fast internet’, Susie Nordqvist, New Zealand Herald, 24 May 2011.5 ‘New Zealand retail prices for fixed line and mobile services: A benchmarking comparison’, Commerce Commission, November 2010.6 ‘2014 earliest possible date for real 4G’, Nigel Horrocks, iStart Magazine, Quarter one 2011.New Zealand Entertainment and Media 2011-2015 | Outlook 19