Drivers and Barriers to the Uptake of a FTTH Ultra-Fast Broadband in New Zealand

Abstract

New Zealand (NZ) is currently implementing a high-speed fiber-to-the-home (FTTH) broadband project known as the Ultra-Fast Broadband (UFB) initiative. In this article we explore drivers and barriers of consumer adoption of UFB. We use a mixed methods approach for conducting empirical research, which includes interviewing broadband consumers, and analyzing secondary research insights from industry. Using grounded theory we postulate research frameworks for consumer adoption of UFB access (CAUA), and consumer adoption of UFB content (CAUC) to portray pertinent consumer drivers, barriers, and deciding factors for the UFB initiative. We find that consumer awareness and pricing are main factors that need to be addressed for a successful UFB rollout. This case study presents us with a timely unique opportunity to analyze the issues involved as the market evolves and stabilizes. This research has the advantage of gathering consumer resistance insights from an early phase of technological introduction.

Keywords: Ultra Fast Broadband Initiative, UFB, fiber-optic implementation, FTTH, consumer broadband adoption

JEL Classification: C63, L96, L98