Geoff Thorn, CEO of the New Zealand Telecommunications Forum (TCF), welcomes Stats NZ’s latest Consumer Price Index (CPI) data, showing a drop of 6.3% in the real cost of telco services for the year ending December 2017.
“The industry has offered significantly better value to customers in recent years” says Mr Thorn. “The latest figures continue a trend seen across the board in New Zealand since 2006; the real cost of telecommunications services is decreasing, even as the quality and quantity of services provided is increasing. By contrast, real costs of comparable utilities for consumers are increasing over time.”
Certain telco services have decreased in price by as much as 27% in the last year; IDC reports the highly competitive retail side of telecommunications has meant the average price for a residential 100/20 Mbps fibre with uncapped data, has fallen from NZD$119.07 per month to NZD$87.78 in 2017 (across 16 tracked retail providers).
“As technology advances over time, the prices that consumers pay on high tech items effectively falls. In the Consumer Price Index, we adjust prices to reflect improved products or services, even if the sticker prices stay the same” says Jason Attewell, Senior Manager, Labour Market and Household Statistics for Stats NZ.
“Telecommunications services have fallen by 6.3 percent in the year to December 2017, a continuation of a trend, due to increasing download speeds and better data packages. This means that consumers are getting more bang for their buck, says Mr Attewell.
-ENDS-
For more information, please contact: Geoff Thorn, TCF, CEO
Ph: +64 21 937 920 | Email: Geoff.thorn@tcf.org.nz
www.tcf.org.nz | Twitter: @TCFNZ
