New Zealand’s fixed communication services market is projected to see modest growth, with revenue expected to rise from $1.3 billion in 2024 to $1.4 billion by 2029, according to GlobalData, a leading data and analytics firm.
The growth is primarily driven by the increasing demand for fixed broadband services, especially fiber-to-the-home/business (FTTH/B) connections, as the country continues to invest in fiber infrastructure to enhance high-speed broadband capabilities.
GlobalData’s latest forecast for New Zealand’s fixed communications sector (Q2 2024) indicates that fixed voice services will experience a slight compound annual growth rate (CAGR) of 0.9% between 2024 and 2029. This marginal increase comes despite a steady decline in circuit-switched subscriptions and sluggish growth in packet-switched (VoIP) subscriptions.
The report also highlights that fixed broadband service revenue is expected to grow at a CAGR of 1.6% over the same period. This increase is largely attributed to the rise in fixed wireless and FTTH/B subscriptions, driven by government initiatives aimed at expanding broadband connectivity across the country.
“Fiber lines accounted for approximately 70% of total fixed broadband lines in 2023 and will remain the leading broadband technology through to 2029,” said Sarwat Zeeshan, Telecom Analyst at GlobalData. “The growth in fiber lines is fueled by the rising demand for high-speed broadband connectivity and ongoing improvements in the country’s fiber broadband infrastructure.”
For example, Chorus, a wholesale fixed-line provider, launched a fiber expansion program in February 2024 to extend fiber internet coverage to an additional 10,000 homes and businesses across 59 communities nationwide.
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In the market landscape, Vector Communications leads the fixed voice services segment by subscription share, while Spark dominates the fixed broadband service market. Spark’s leadership is bolstered by its strong presence in the FTTH segment and its promotional offers, including exclusive deals on music, movies, and sports bundled with fiber broadband.
“The ongoing shift towards fiber broadband is reshaping New Zealand’s fixed communication landscape, with FTTH/B becoming the backbone of high-speed internet access,” Zeeshan added. “As consumer demand for faster and more reliable connectivity grows, telecom providers must prioritize expanding fiber networks and innovating service offerings to stay competitive and meet the evolving needs of both residential and business users.”
