Question 1

Is there genuine room to increase mobile prices in the New Zealand market?

Accepted Answer

Yes. Consumer sentiment has shifted significantly, with 23% of users expecting to increase their mobile spend in 2022, up from just 7% in 2021. Price sensitivity is declining as a churn driver, with only 31% of switchers citing cost as their primary motivation compared to 50% previously.

Question 2

Are consumers actually willing to pay a premium for 5G?

Accepted Answer

5G monetization is already materializing, with 46% of the 38% of users on 5G currently paying a premium for the service. This indicates a clear appetite for performance-based tiering rather than a race to the bottom on price.

Question 3

How effective is sports content as a customer acquisition tool?

Accepted Answer

Bundled media is a high-leverage churn driver, as 25% of all respondents are willing to switch providers to access their preferred sports content. Among those already paying for sports apps, this propensity to switch for a bundle rises to 59%.

Question 4

Should we continue to prioritize handset subsidies to drive upgrades?

Accepted Answer

The ROI on handset subsidies is weakening as 65% of users now keep their devices for three years or more. Operators should pivot from hardware-led acquisition to service-led retention, specifically targeting the 18% of the market planning to move to unlimited data plans within the next year.

Venture Insights NZ survey 2022: Consumer Mobile Preferences

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