The New Zealand telecommunications industry is set to undergo some fundamental changes under the unified communications NZ policy. This policy is being driven by the incoming government in an attempt to improve upon the outdated telecommunications market which has seen a number of mergers and acquisitions in recent times. Under this new policy, all telecommunications companies will be required to operate under one brand and for all services provided by them to be the same. This ensures that customers and businesses will have the same level of experience when engaging with these companies.
The reason for the merging and acquisitions was mainly to fill up the gap left behind by the merging of Teletrak and TPG. With both these giants in the telecommunications field, it was expected that there would be at least a 2% share of the market share gap between these two giants. However, with the merging and acquisitions of NZX and SingNet, the market was largely unoccupied and companies were forced to compete on different standards. It was then expected that there will be consolidation of these companies who had been hit hard by these mergers. However, following the merging of Teletrak with Teleflora, New Zealand’s biggest telecommunications company, under the unified communications NZ policy, there will now be at least a third of a share of the market for Teletrak and a half share for Teleflora.
With the unified communications NZ policy in force, more companies will be able to provide competitive rates for their services and as a result, customers will have more choice when choosing their telecom services. Businesses can also benefit from choosing services that are covered under one set of rules and as such they will be able to operate under a uniform brand name. They can also be assured of having services which are of the same standard irrespective of whether they are operating through Teletrak or Teleflora. Having the same standards enables all telecommunications companies to serve their customers with similar services and this is the major reason why New Zealand has been able to increase its services market up to 24%.