Friday, August 10th, 2012
Vodafone’s upcoming buyout of TelstraClear looks set to put significant pressure on Telecom in the internet and fixed line residential markets across New Zealand. After the buyout, assuming Vodafone manages to retain TelstraClear customers, this will also slightly increase Vodafone’s lead in the mobile phone market. These findings are based on Roy Morgan Research Single Source – a New Zealand-wide survey of approximately 12,000 New Zealanders annually.
Vodafone’s 9% residential fixed line market share will increase to a substantial 25%, while their home internet market share will increase from 11% to 26% according to Roy Morgan Research.

Telecommunication Brand Share

Source: Roy Morgan Single Source, New Zealanders aged 14+, May 2011 - April 2012 (n=11,832).

The biggest regional gain for Vodafone in the internet market will be in Wellington, where TelstraClear has traditionally had a large market share (32%).  Vodafone’s acquisition of TelstraClear now allows them to edge ahead of Telecom in this region (37% market share versus 35% for Telecom).  Similarly, the buyout will also benefit Vodafone in the Canterbury region, where they will have a combined market share of 33% (though still shy of Telecom’s 40%).

Internet Market Share by Region

Source: Roy Morgan Single Source, New Zealanders aged 14+ and have home internet connection, May 2011 – April 2012, n=9,754.

Vodafone’s acquisition of TelstraClear shows comparable regional effects in the fixed line market, which will result in a 43% market share in Wellington and 36% market share in Canterbury.

Fixed Line Market Share by Region

Source: Roy Morgan Single Source, New Zealanders aged 14+ and have a fixed line, May 2011 – April 2012, n=11,832.

Pip Elliott, General Manager (New Zealand), Roy Morgan Research says:
“Vodafone’s announcement to buy out TelstraClear will place considerable pressure on Telecom in the residential internet and fixed line markets across New Zealand. The region where this pressure is most notable is in and around Wellington and Canterbury, where TelstraClear has traditionally had a significant market share.

“For years, Vodafone has been very competitive in the mobile phone market across New Zealand, but has struggled in the internet and fixed line markets. Nevertheless, the acquisition of TelstraClear will allow Vodafone to offer their mobile customers (as well as TelstraClear customers) a complete telecommunications package.

“Any buyout relies critically on retaining the most valuable customers. No doubt Telecom and all of the competition will be targeting the newly acquired TelstraClear customers.

"Roy Morgan’s detailed data provides rich profiles of these customers, their demographics, their values, attitudes and priorities, technology engagement and media usage.”

An extensive range of detailed Roy Morgan New Zealand Telecommunication and Technology profiles includes the Internet Profiles, Internet Service Provider Profiles, and Mobile Service Provider Profiles. Roy Morgan Research Consumer Profile contains insightful quantitative data in ready-to-copy-and-paste charts and graphs that can be an invaluable resource for your market review, strategic marketing planning, advertising brief development, management update presentation or conference address.

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Roy Morgan Research

Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
Shaun Ellis
P: 03 9224 5332


Vodafone, TelstraClear



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