Spark New Zealand's plans to fatten earnings margins will largely rely on its ability to switch broadband customers to its fixed wireless network, although the next iteration of mobile technology makes the future murkier for the country's biggest telecommunications group, says broking and research house First NZ Capital. AdvertisementDekker said fixed wireless is set to be Spark's immediate source of cost savings in that it bypasses Chorus's wholesale charges and cuts back on call centre expenses by avoiding copper fault calls. Spark has been trying to reduce its reliance on Chorus's network by aggressively marketing its wireless broadband service as a viable alternative to copper-based internet, and mounted an unsuccessful takeover for Wellington-based network minnow TeamTalk. A major uncertainty for fixed wireless is fifth-generation (5G) mobile technology, which Dekker said is still some years away and unclear whether it will lead to wireless broadband becoming a viable substitute for fibre technology. Spark shares recently rose 0.1 per cent to $3.785 and have gained 11 per cent so far this year.

Source: New Zealand Herald July 03, 2017 03:11 UTC