Opportunities

City and suburban landscape, showing the different types of connectivity available, including fibre broadband, copper lines and 5G mobile towers.

Technology opportunities for improving connectivity

New Zealand’s telecommunications networks deliver connectivity to New Zealanders through a mix of different technologies. As quickly as our connectivity needs evolve and grow, so do the technologies that can deliver real connectivity improvements for New Zealanders. As we look to the future of connectivity, the right mix of these technologies will help New Zealanders access connectivity with the coverage, performance and pricing they need.

Fibre

Fibre-optic cabling (simply referred to as fibre) is currently available for around 1.8 million homes and businesses.

Fibre is capable of handling high upload and download speeds with low latency. Speeds in New Zealand for fibre range from 50 Mbps upwards (depending on plan and user equipment). Fibre’s high speed, high capacity, low latency and comparatively low energy requirements also make it well suited for handling the expected future growth in demand for data and network speeds (including across the backhaul parts of the network).

There are likely opportunities to improve the ‘highways’ of the network by extending fibre networks.

No matter what kind of access technology is used to provide service to your home, business and mobile devices, these eventually connect to the rest of the network via backhaul networks. Improving backhaul capacity and coverage by upgrading to fibre for example, can improve the experience for everyone, no matter what technology is used to deliver your broadband service.

Fixed wireless

Fixed wireless access is a broadband service that enables an end user to connect through wireless technology, for example cellular. The service is broadcast through airwaves from towers to receivers installed on the user’s property, usually a standard wireless modem, or augmented with an antenna where necessary.

Low earth orbit and geostationary earth orbit satellites

Low earth orbit (LEO) and geostationary (GEO) satellites are increasingly providing a greater ability for users in more remote parts of Aotearoa New Zealand to connect to the internet where other types of connectivity infrastructure are not available.

Geostationary orbit satellites are an established technology with many providers in Aotearoa New Zealand already selling internet service plans to customers taking advantage of the technology. Geostationary satellites remain in a fixed position at a high altitude, which allows each satellite to cover a wide geographic area without the need for an extensive ground-based network.

Low earth orbit satellites are a more recent innovation. They comprise many small satellites (referred to as constellations) that orbit the earth at a much lower altitude than geostationary satellites, with each satellite traversing a much smaller area than a single geostationary satellite. Low earth orbit satellites can offer high speeds and low latency (with some service providers offering speeds of 100 Mbps or more).

However, because they move in the sky, their signal can occasionally be temporarily blocked as they ‘move behind’ hills, trees or structures.

5G Networks

5G technology is the next generation of cellular mobile technology. It is expected to deliver faster and more reliable services supporting innovation and productivity. Compared with 4G technology, 5G offers:

  • much faster upload and download speeds,
  • lower latency (assuming other components of the network are equipped and configured to handle higher speeds), and
  • greater data carrying capacity.

5G can offer a superior broadband experience when compared to 4G, and is capable of supporting the expected huge growth in the number of connected devices.

However, the high frequencies used for most 5G equipment often mean the signals have a shorter broadcast range. These same frequencies are also more prone to being blocked by buildings, trees, hills and other obstacles. This can mean that more towers are required than 3G or 4G to cover a similar land area, which can make building, operating and maintaining a 5G network more expensive (particularly in rural areas where there are greater distances between customers).

In urban areas, the high number of customers within a small area generally makes it economically feasible to build very small radio transmitters for 5G (sometimes called micro-cells) to overcome the shorter range of 5G, and the blocking effects of buildings. The increased use of micro-cells in urban areas means taking a different approach to the location and design of fixed and mobile phone infrastructure.

Countryside landscape, showing the different types of connectivity available to rural areas, including Satellite devices.

Internet of Things and local wireless solutions

The Internet of Things (IoT) refers to the growing range of physical objects and devices around the world that connect to the internet and each other to communicate for sharing data. These devices are sometimes referred to as “smart devices”.

Smart devices may come equipped with sensors, cameras, chips for recording and sending data (such as over Wi-Fi, Bluetooth, cellular or Near Field Communications) and GPS. In most cases smart devices connect to a central server or website and require connectivity.

Fixed wireless and Wi-Fi access can be used in rural situations to extend broadband access into the surrounding environment, enabling coverage to IoT devices.

There is expected to be an education role for government to play in raising awareness of the opportunities presented by wireless extension technologies and the options available to maximise its potential and provide cost-effective local solutions.

Local solutions for local needs

The range of connectivity technologies now available means that local communities have more choice in improving coverage or capacity, including from smaller network operators. For example:

  • Smaller communities are often aware of their particular needs and, given options and knowledge can identify innovative, cost-effective solutions for meeting those needs.
  • Wireless Internet Service Providers (WISPs) and similar scale market entrants can often make use of smaller, less costly infrastructure and localised licensing to provide services to a small community.
  • As noted above, at an individual rural property level, a property owner can take advantage of off- the-shelf Wi-Fi technology to extend coverage to other parts of their property. That technology can provide them with internet access or allow them to make voice calls over the internet (VoIP).
  • Iwi or hapū can enter into partnerships with providers or set up their own localised connectivity solutions to meet their needs, or those of their communities.