The number of broadband subscribers has overtaken dial-up subscribers for the first time, a Statistics NZ survey shows.

InternetNZ executive director Keith Davidson said it was obvious people wanted faster Internet but the broadband offerings in New Zealand were deficient.

"Many of the broadband offerings we have today are still not up to scratch and New Zealand has a long way to go to claim real broadband."The number of broadband subscribers has overtaken dial-up subscribers for the first time, a Statistics NZ survey shows.

InternetNZ executive director Keith Davidson said it was obvious people wanted faster Internet but the broadband offerings in New Zealand were deficient.

"Many of the broadband offerings we have today are still not up to scratch and New Zealand has a long way to go to claim real broadband."SNZ's six-monthly ISP Survey for September 2007, released last week, shows broadband subscribers increased by 14.4 per cent and dial-up subscribers fell by 8.6 per cent.

"Dial-up is no longer adequate for accessing some of the most useful content and services on the Internet - it just isn't fast enough," said Davidson.

Davidson said broadband offerings themselves are deficient, although regulatory changes to the Telecommunications Act should see increasing diversity of consumer options in a more robust and competitive market.

"Existing and potential broadband subscribers expect greater certainty in terms of actual speeds, reliability, and costs. This certainty has been somewhat absent with many current broadband options and the resolution to these problems is likely to lead to faster uptake."

The Statistic NZ survey showed that there was a 47 percent increase in the number of Internet service providers reporting that the cost of international bandwidth had been a barrier to growth in the past two years.

The proportion of ISPs citing the regulatory environment as a barrier to growth has decreased every period since September 2005 except during the last six months ended September 2007 where it increased to 47 percent from 42 percent from the previous period.

Broadband subscribers increased 14.4 percent, to 829,300. However, the growth rate has slowed.

Of the additional 10.6 broadband subscribers per 100 inhabitants in the two years to September 2007, 5.3 subscribers switched from dial-up and 5.3 were new subscribers.

More details

Broadband subscribers continued to increase - up 14.4 percent in the six months to September 2007, to reach 829,300. However, this growth rate has slowed from an increase of 28.6 percent in September 2006 and 18.5 percent in March 2007.

Subscribers with dial-up connection fell 8.6 percent from March 2007, down to 675,800.

The number of broadband subscribers grew from 9 per 100 inhabitants to 19.6 per 100 inhabitants in the two years ended September 2007, while the number of dial-up subscribers per 100 inhabitants fell from 21.2 to 15.9. Of the additional 10.6 broadband subscribers per 100 inhabitants, half switched from dial-up and the remaining half were new subscribers.

The Internet Service Provider Survey is a census of all Internet service providers in New Zealand and is conducted every six months.

ISP Survey PDF report

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Story: By Cathy Aronson

10/03/08