New Zealand Small and Medium-Sized Business Telecommunications Buyer Behaviour, 2007

This IDC study looks at small and medium-sized business (SMB) behaviour and demands when purchasing telecommunications products and services as well as preferred service provider (SP) interaction methods and mediums. As the New Zealand telco market undergoes a period of drastic disruption and change, and as telcos and Internet service providers (ISPs) devise strategies to compete in this new environment, it is important to determine how SMBs operate and how they wish to interact with the SP. As competition grows in the New Zealand telco industry, all SPs are increasingly focusing on SMB customers. This study gives an insight into requirements and demands of the SMB customer.

"The New Zealand economy is heavily skewed towards SMBs, a target audience becoming increasingly saturated as all SPs shift focus towards these customers. The large enterprise market allows little opportunity for SPs to acquire new customers and remains reasonably static. The consumer space is becoming less profitable, resulting from both increased competition and the rise of less-profitable technologies. All SPs see the principal segment of growth coming from the SMB market. To be successful in such a highly competitive environment requires challengers to have a deep understanding of SMB operations. This includes their preference for interaction, key organisational stakeholders, and the challenges faced by SMBs," says Tim Shepheard, Market Analyst, Telecommunications, IDC New Zealand.