The construction of the trans-Tasman cable beginning in 2015 will provide competitive advantages for the project investors Spark and Vodafone, providing an alternative to the monopolistic occupant Southern-Cross Cable Network. The two telecoms giants will then on-sell the internet services to the smaller internet service providers at a lower cost due to a sizable increase in wholesale supply. Global trend in providers looking to bundle services together to provide complete solutions to customers needs. A key future advancement will include smart-home packages including: networking, internet television, complete network security, intercom systems, phone systems including voice over internet protocol (VoIP) and video conferencing services. Commerce Commission to increase copper-based lines charges by $4 will likely increase the cost to internet service providers who may struggle to pass this cost on to customers, especially the low-cost providers who have only slim profit margins

Five Forces Analysis Reasonably large investment required to enter. Other viable alternatives to the Internet such as pre-internet telephone calls and paper-based activities are generally not feasible Supplier power is moderate due to strict regulation by the Commerce Commission although there are minimal alternatives for buyers to source from due to large-scale purchasing and the suppliers relying on buyers for the vast majority of their revenue Factors such as brand, service reliability and service support will differentiate the competitors, however the difference may not have a great effect on price-sensitive customers.Offering services such as fixed-line broadband, a service largely undifferentiated among competitors, will be difficult. The profits in this sector by and large will come from other services bundled with the core offerings.

Company profile and goalsThere 4 core business areas

Spark Home, Mobile and Business provide products and services to ensure New Zealanders are connected via technology such as phone, mobile, broadband Spark Digital involved in supplying digital infrastructure that connects New Zealanders to each other and the world Spark Ventures is future focused and creates and delivers new and innovative services and businesses such as Lightbox (subscription video on demand), Skinny Mobile (lower prices in the mobile industry), Appa La Carte (produce own app), Digilife (monitor home from your smartphone) and a range of others Spark Network develops world class connectivity and great customer experiences through connecting technology, products and processes via the Spark Network