Chugging gigabytes: New Zealand internet use hits all-time high

For context, streaming a movie on Netflix consumes around 3GB of data, or about 7GB in 4K ultra high definition. A full day streaming Spotify chews up around 1GB. An evening playing Fortnite will account for around 0.5GB. Zoom eats between 0.3 and 1.3GB per hour, depending on the video quality.

The streaming revolution has gathered pace recently with TVNZ reporting record usage of its streaming service – for which it claims 1.25 million users per week in its 2024 annual report, up from the year-ago 1.1 million.

Sky TV has launched its Sky Pod, which receives all regular channels (as well as on-demand content) over fibre. The pay-TV broadcaster reported in February that 505,000 of its 1.05 million customers subscribe to its Sky Sport Now or Neon streaming apps, up from the year-ago 436,000. Sky’s apps can use 1GB to 3GB per hour on a smart TV.

Then there is the rise and rise of TikTok, which can consume 1GB per hour, depending on the device, and how fast you doomscroll. Another new trend, AI assistants and chatbots, are relatively data-light, with most of the heavy lifting done on servers in the cloud, with just the resulting text sent to your device.

Fibre vs wireless

Blowing your data cap is no longer a concern for most NZ households, with more than 80 per cent now on unlimited data plans, according to Stats NZ.

Chorus is keen to push the reliability of performance of fibre, however. Plus the fact that unlike cheaper alternatives like 4G fixed-wireless, fibre doesn’t suffer “contention” or degraded performance when more people use the same bandwidth at peak times. Fibre also has next-to-no “latency” or lag with two-way connections like video calls or multiplayer gaming. Latency can be an issue with wireless broadband.

But the competitive landscape has just got a bit more interesting. The Commerce Commission earlier this month released its first benchmarks of 5G fixed-wireless average speed (based on volunteer households who have signed up to its testing programme, carried out by SamKnows).

All were with Spark on its Max Wireless plan, which offers fixed-wireless 5G (that is, using 5G mobile technology to deliver broadband to fixed areas, such as a home, with the help of a special modem).

The average download speed measured for Spark’s Max Wireless 5G Plan was 348 megabits per second during all hours, and 329 Mbps during peak hours.

The ComCom said 5G fixed wireless users “will likely experience higher latencies due to the nature of cellular technology” but said the technology could be expected to support “data-heavy applications, such as UHD (ultra high definition or 4K) streaming with multiple simultaneous users. That’s a contrast to 4G fixed-wireless, which the regulator says can stumble with more than one 4K Netflix stream – and can sometimes struggle with that.

Chorus head of industry Sally Ma told the Herald, There were only a couple of [5G fixed-wireless] metrics reported from a single provider, so it’s too early to understand how 5G will perform on average. The Commerce Commission itself stated that 5G wireless speeds could slow as wireless networks get more loaded.”

Starlink pushing into the frame

The ComCom has also started testing Elon Musk’s Starlink satellite broadband for the first time recently (dubbed LEO or Low Earth orbit satellite in its reports but a spokesperson confirmed it’s all Starlink results).

The June report says 78% of Starlink customers were able to stream four simultaneous 4K Netflix streams, an increase from 60% last year (Musk’s service continues to launch more satellites, boosting its performance). The average download speed for Starlink was 224Mbps.

Copper shrinking

Chorus says 87% of its 1.24 million connections are now on fibre. Some 45,000 are still on “baseband copper” (that is, copper with no broadband), down from 72,000 a year ago as copper lines are gradually switched off in areas with fibre.

111,000 are still on copper broadband from the year-ago 167,000.

Of the major centres, Auckland has the highest UFB uptake, with 76.6% connected. Wellington is the lowest at 70.7%.

Chorus said the number connected to its budget-priced 50Mbps Home Fibre Start plan grew by 9000 to 47,000 over the past year.

But overall, only 11% of residential connections are on plans below 300Mbps.

The majority of Chorus connections are now on 500Mpbs plans (which, like all of its services, the UFB operator wholesales to retailers like Spark, One NZ and 2degrees).

Some 3500 are now on “Hyperfibre” plans that offer speed of 2Gbps (2000Mbps) or more – allowing Chorus to safety claim bragging rights over 5G fixed-wireless and other alternatives.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.