Survey finds trans Tasman roaming costs prohibitive

The Minister for Communications and Information Technology, Steven Joyce, says four out of five New Zealand businesses surveyed say the costs of data roaming is prohibitive to their staff doing business in Australia.

The Minister has today released the results of a survey from the Ministry of Economic Development which asked New Zealanders and New Zealand businesses how they stay in touch when travelling across the Tasman.

The survey of 534 New Zealanders travelling to Australia was carried out between July 2010 and January 2011 and informed the decision of the New Zealand and Australian governments to conduct a joint investigation into whether regulatory intervention is required in the trans Tasman roaming market.

The limits placed on staff wanting to use their smartphones, tablets and laptops to access the Internet was one of the significant findings.

“I am concerned at the number of business respondents who indicated that, because of the cost, they encourage staff to use data roaming only if they really need to,” said Mr Joyce.

The majority of Kiwi businesses surveyed also encourage staff to minimise calling and texting when in Australia.

Mr Joyce says he is hopeful that improvements in data roaming prices announced by some operators in recent weeks will go some way to alleviating this problem, but that the joint investigation will proceed.

“The results of the survey will provide useful information that will help us determine whether roaming services are competitive.

“I would like to thank the people who took the time to respond.”

The results of the survey are available at www.med.govt.nz/ttr/survey

Questions and answers

When was the survey conducted?

The survey was conducted between July 2010 and January 2011, before the most recent pricing changes by some operators. Individuals were surveyed first, then small and medium enterprises and larger corporate businesses.

Who conducted the survey?

The survey was designed, conducted, and analysed by the Ministry of Economic Development using recognised survey methodology. Assistance in reaching respondents was kindly provided by New Zealand Customs, TUANZ and other organisations.

How was the survey conducted?

All respondents answered an on-line questionnaire.

What were the survey findings?

Amongst its findings, the survey found that:
- most New Zealand individuals and business travellers take a mobile phone with them when they travel to Australia, and most New Zealand business travellers take a laptop with them when they travel to Australia;
- both individuals and businesses attempt to limit use of mobile roaming services in Australia, with the main reason being concern about the cost;
- the majority of businesses believe that roaming services contribute to their staff’s ability to work effectively while in Australia.

Don’t recent price drops make the survey results less relevant?

Some trans-Tasman roaming prices have dropped significantly in recent weeks. When considering the state of competition in the market today, certain survey results will therefore need to be interpreted with caution.

How will the survey results be used for the investigation into trans-Tasman roaming?

Survey results are useful, empirical evidence that can assist the Government in defining the market being investigated, understanding how much consumers can constrain operators’ pricing behaviour, and assessing the potential benefits that lower roaming prices might bring.