30 Apr 2013

Modest telco revenue growth expected to continue

7:01 am on 30 April 2013

A telecommunications analyst says the industry is likely to continue experiencing modest revenue growth due to competition and the need to invest in faster networks.

In its annual report reviewing the sector, the Commerce Commission found revenue rose 4% to $5.2 billion in the year to June 2012, with a surge in demand for higher-margin data from the internet offsetting a decline in voice calls.

The commission said revenue growth has tended to lag well behind inflation.

Mobile retail revenue rose 11% to $2.4 billion, with demand for mobile data doubling for the second year in a row.

Fixed line sales declined 2% to $2.8 billion, but fixed broadband doubled during the year.

IDC research head Peter Wise said those trends have continued.