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Kiwi telcos show the way forward

by on21 May 2020

Globaldata praises methods of tackling COVID-19 impact

Beancounters at GlobalData have praised telco service providers in New Zealand for giving a lesson to the rest of the world as to how they should handle the coronavirus impact.

The number of confirmed COVID-19 cases in New Zealand crossed 1,150 as on 19 May 2020. The country has taken stringent measures, including a one month national lockdown, which started on 25 March 2020, to curb the pandemic.

But the telecommunications service providers in New Zealand are effectively tackling the situation and providing maximum support to their customers both in terms of network coverage and financial assistance, says GlobalData, a data and analytics company.

New Zealand recognised telecommunication services as an essential service during the lockdown. Telecommunication service providers operated non-contact retail stores to offer services to their customers. Non-contact retail store services include the handset, modem and SIM replacement.

Sree Venkatesh, Senior Analyst in Telecoms Market Data & Intelligence at GlobalData, said: “COVID-19 has a massive impact on the economy of countries across the world. Governments have introduced economic packages to support their citizens and businesses during this outbreak. The telecommunications service providers are playing their part to support the customers and taking effective measures to sustain the economic downfall.”

To ensure connectivity and reliable services, operators are working on strengthening their network infrastructure during this pandemic. For example, in May 2020, Vodafone announced the launch of new 4G cell sites in Tasman and Southland districts to boost connectivity in rural areas of New Zealand.

Operators are continuing to witness a significant rise in mobile data traffic and voice call from March 2020. Major operators in the country Vodafone and Spark have reported a spike in the data consumption during the lockdown period.

However, international roaming has reduced significantly due to restrictions on international travel.

On the financial front, the operators are set to experience an impact on revenues due to the economic slowdown. As per the COVID-19 economic dashboard released on 17 April 2020 by the government, economic activity has majorly declined during the lockdown. In its press release released on 14 April 2020, 2degrees announced that it is already facing revenue impact due to COVID-19. In addition, to support customers during COVID-19 pandemic, 2degrees is not charging any late payment fees.

Venkatesh said: “The lockdown in New Zealand has significantly increased the demand for telecommunication services. An increase in mobile data consumption is expected to continue in the coming weeks with new unlimited mobile data packs. However, due to the economic slowdown, lockdown restrictions, and low-cost data packs, revenues of operators are expected to decline in the first half of 2020.”

Last modified on 21 May 2020
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