Smartphones driving Telecom's mobile sector

A significant increase in smartphone purchases have been the force behind Telecom’s increased connections and 3G data sales.

Telecom mobile connections were up by 21,000 in the last six months. Most of the increase was made up of prepaid connections.

Telecom chief executive Paul Reynolds said there had been a significant increase in smartphone sales driving 3G data usage.

2011 was also looking positive for the mobile sector.

“We still have a ways to go for smartphone usage and therefore for data usage, so there’s a growth opportunity there,” Reynolds said.

16% of Telecom’s mobile base was using smartphones, he said.

However mobile revenues were down 4% from the previous half, driven by lower handset revenues and a reduction in voice calling.

Telecom would continue their drive to increase smartphone and tablet penetration, Reynolds said.

Chief executive of Telecom Retail, Alan Gourdie, said Telecom had benefited from high-value smartphone device trends, but wanted to see smartphone penetration at the same level as European markets, of which some had “about 50%” penetration.

Gourdie said he believed the success of smartphones for Telecom Retail was a result of the company’s “Android strategy”.