Latest OECD broadband statistics highlight NZ data caps

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Right at the moment when the OECD released its broadband statistics for the December 2008 year last Wednesday, I was lucky to be hearing the detail straight from the horse's mouth.

Dr Sam Paltridge, Communications Analyst at the OECD, spoke at the INTUG/BELTUG meeting I attended in Brussels. Sam is an Australian who has worked for the OECD in Paris for many years and is a world authority on broadband trends. His Aussie roots mean he takes special interest in our corner of the world.

So with the benefit of Sam's inside knowledge and interpretation I picked up several trends in the New Zealand figures, good and bad.

The best, undoubtedly, is that New Zealand's year-on-year uptake increase is among the world leaders. Only Slovakia and Greece increased their penetration faster than we did last year - we went up by 3.77% against the OECD average of 2.56%. Sure, late starters like us have a statistical advantage in this kind of measure, but its still a good place to be.

Another interesting figure is the comparison between broadband uptake and GDP. As a country we are ahead of the pack on that basis. Encouraging, in that if one assumes uptake of the technology should be a predictor of the economic gain that flows from it, New Zealand is well positioned. And there's mounting evidence of such a link.

The worst indicator for New Zealand is our comparative position with data caps, a problem we share with the Aussies. As this chart shows, New Zealand remains one of just 4 OECD countries where data caps are universal. After us there are 10 countries where some plans have data caps and others don't, while in the remaining 16 countries "data cap" is not part of the vocabulary.

Sure, we can make excuses about isolation. But the reality is that the world is becoming more bit-hungry and not less. There needs to be a definitive look at the reasons for data caps, possibly in conjunction with the Australians. After that we need a plan to deal with it before the proliferation of high-bandwidth content goes too much further and the issue becomes a really serious deterrent to Internet usage.

All in all though, this is an encouraging report. It's so good these days to be able to sit through a presentation like that as a Kiwi without having to cringe! We are starting to punch in accordance with our broadband weight, if not yet ahead of it.

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3 comments

  • Heaven Can Wait says:

    Re Data Caps
    It's a blot on our telecommunications environment here in NZ and is a real blockage to increased broadband usage. I wonder what will happen when the high speed fibre network comes on line and we all hit our data caps much more quickly. Will we continue to be gouged pricewise as we are at present while the telcos continue to make disingenuous excuses for the status quo?
    All the telcos involved should hang their head in shame!

    Added: 24 May 2009, 7:53 p.m. Flag as Spam  |  Flag as Offensive
  • Jono says:

    I agree the data caps are terrible. The worst thing is that there has not even been an increase in the caps over time.

    But the question is - what can be done about it? Will fibre solve the problem? International capacity increase? Improvement is definitely needed.

    Added: 24 May 2009, 9:29 p.m. Flag as Spam  |  Flag as Offensive
  • kevin says:

    When i was on unlimited dialup i could use about 3.5GB data a month at no extra cost (approx 5hrs/day gaming/browsing ) now i'm having to pay for bandwidth and data usage on adsl , and as web pages get bigger with more content and more ads, we still are stuck paying for local and international data. I think Data caps are holding NZ back in the dialup age with high costs especially when windows and other software will update automatically by default slowly eating into your data usage.

    Added: 26 May 2009, 4:48 p.m. Flag as Spam  |  Flag as Offensive
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