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JUL 2007 - The NZ Broadband Consumer

Written by Michael Carney, G2

Our colleagues at Nielsen Media Research have recently released The Broadband Report, containing insights into The Broadband Consumer in New Zealand.

Amongst the fascinating facts you might not know:

• The gap between broadband and dial-up has narrowed considerably over the last couple of years, telco confusion-based strategies notwithstanding. In 2006 24% of New Zealanders aged 10+ reported a home broadband connection versus 33% still stuck with dial-up (a further 11% were unsure, so the confusion agenda is definitely working)
• Amongst Active Home Internet Users – those who’ve accessed the internet from home in the last four weeks – the gap is negligible. 44% of Active Users were on dialup, 42% on broadband (and yes, the confused and unsure made up the balance)
• 22% of dialup users were reporting their intention to increase their connection speeds in the next twelve months, suggesting that 2007 will be the tipping point
• Broadbanders are more likely to live in Auckland, Wellington or Christchurch – probably as a function of telco availability rather than any provincial aversion to living in the fast lane
• Broadband users are 20% more likely than dialer-uppers to buy stuff online, 11% more likely to be lost without a mobile phone, 6% more inclined to try new types of food and 5% more optimistic about the future
• In general, broadbanders are more frequent internet users, they stay online longer and they participate in more activities – including internet banking, researching products and services, instant messaging, VOIP (web-based phone calls) and even blogging
• It’s not that broadbanders are inherently more wired than those living in the land of dial-up, but rather that faster download speeds enable the internet to be much more than just an information and communication channel

Nielsen predictions for the Kiwi broadband future, as we get to more than 50% of households with broadband access:

• An increased participation in uploading consumer-generated content (as seen on YouTube, MySpace, Facebook, Bebo and the like);
• Increased use of the internet to provide entertainment (podcasts, internet radio, video downloads, TVNZondemand, etc.);
• An increase in the amount spent on purchases online;
• And an increase in the use of wireless technology, for anywhere anytime connections.

Ah, that interweb, can’t you just taste the future …