Unlike in Australia and many other countries, New Zealand is still waiting for 5G. Here’s when expect it, and how it will affect New Zealand’s mobile market.

About a year ago, Vodafone New Zealand announced its intention to construct a 5G mobile network for Wellington, Auckland, Queenstown, and Christchurch. These towers were placed around these areas at the end of 2019.

Although there have been some setbacks due to the conspiracy theory of 5G networks association with the COVID-19, more towers are set for construction this year and 2021 to expand the network.

New Zealand 5G implementation

5G is the latest in mobile network technology. It uses high-frequency radio waves to transfer data with lower latency and higher bandwidth than the current 4G network. Demand for mobile data has expanded in the past five years, and because of the over-reliance of mobile data for accessing the internet, playing online games like at Casumo casino, or for business, 5G services became popular with users.

Vodafone wants to have a competitive edge in the 5G market and intends to roll out 5G towers before 2degrees and Spark New Zealand. So now, all three large New Zealand telephone companies have 5G, but Vodafone remains ahead of the game thanks to their quick action.

Since 5G is capable of download speeds over 10Gbps, it’s now comparable to the top speeds available on fiber broadband. Most tests were done in a controlled environment, but most users will realistically experience speeds between 60-90Mbps, which is comparable to mid-tier fiber-optics.

5G in Australia vs New Zealand’s mobile market

High speeds will allow for a better user experience for web browsing, watching videos, gaming online, and other mobile-related activities. Many mobile companies already offer packages, including a 5G network. Australia has had 5G plans since 2019, with Telstra offering access free to customers with a compatible device for the first year. 

After it’s fully rolled out in Australia, 5G will be charged at a premium rate of $15 AUD. Likewise, New Zealand will also charge additional premiums for 5G. Unfortunately, unlike in Australia, New Zealand’s 5G network will be limited, because data caps are likely to scare away consumers. 

With Australia’s networks, the multi-technology mix model has constrained the speeds of its fixed-line services, which means that mobile internet will become a more viable alternative. New Zealand still doesn’t have this service, and likely won’t have it in the future unless the country’s population explodes. 

Even in late 2020, most New Zealand users don’t have a phone that is compatible with a 5G network. Until they do, the technology will be less appealing to consumers. However, IBISWorld sees 5G becoming popular in a few years, when consumer contracts will have ended and consumers need new phones. Telecom companies may only stock phones that have 5G compatibility.

How 5G impacts New Zealand’s internet

The future of the internet rests on 5G networks and its implementation throughout the world, because machines need a network that can keep up with the amount of data it uses. As more businesses turn to technology for daily activities, they’ll have more cloud or mobile applications open at once. Companies will seek to automate and improve their current systems.

One of these business activities is machine-2-machine communication, which is already an active and prominent way we interact without realizing it. For example, smart meters are used for measuring utility usage, and require mobile networks to communicate between utility providers to give and receive data. 5G will allow for a faster smart meter system, which could quicken the way information is shared between consumers and providers.

On the whole, many New Zealand industries will benefit from 5G. These include companies in web hosting, data processing, electricity retailing, and gas extraction, just to name a few.

But for the average consumer, it simply means a faster way to browse the internet, watch podcasts, and play games. And finally, 5G also allows users access to bandwidth in remote places, like the New Zealand countryside.

Want to see more of the latest 5G news? You can — right here on MobileVillage.