New Zealand’s fixed communication services sector is poised for steady growth over the coming years, with total revenue expected to rise at a compound annual growth rate (CAGR) of 1.6 percent, according to GlobalData.
Revenue of New Zealand’s fixed communication services will grow from $1.4 billion in 2023 to $1.5 billion in 2028. The primary driver behind this growth is the burgeoning fixed broadband segment, according to GlobalData’s New Zealand Fixed Communication Model.
The fixed voice services revenue in New Zealand will exhibit a slight decline at a CAGR of 0.2 percent during the 2023-2028 period. This decline can be attributed to continued losses in circuit-switched subscriptions and a steady drop in fixed voice average revenue per subscriber (ARPU) levels, Aasif Iqbal, a Telecom Analyst at GlobalData, said.
Fixed broadband services revenue in New Zealand, on the other hand, will increase at a CAGR of 2.1 percent during 2023-2028. This growth is being driven by the projected rise in the Fiber-To-The-Home (FTTH) and fixed wireless subscriptions. Government initiatives and operators’ efforts to expand the fixed broadband network, especially through fiber optic networks, will further boost fixed broadband service adoption in the country.
GlobalData’s analysis predicts that fiber optic lines will dominate the broadband landscape in New Zealand, constituting 69.5 percent of total broadband lines in 2028. The increased demand for high-speed broadband connectivity in New Zealand, coupled with operators’ focus on expanding their fiber-optic networks and expanding their FTTH user base, is a significant contributing factor.
For example, the operator Chorus plans to retire its copper network and transition entirely to fiber optics in New Zealand by 2026. Chorus is also actively extending its fiber optic network to 10,000 premises outside of its existing Ultra-Fast Broadband (UFB) zones.
Vector Communications is expected to lead the fixed voice services segment in terms of subscriptions in 2023, thanks to its strong presence in the Voice over Internet Protocol (VoIP) segment in New Zealand.
Meanwhile, Spark New Zealand is set to dominate the fixed broadband services market in 2023, supported by its significant presence in the Digital Subscriber Line (DSL) and FTTH segment. To attract new subscribers, Spark is offering unlimited fiber broadband plans at different price points, along with free Standard Netflix and McAfee Security subscriptions, as well as exclusive deals on music, movies, sports, and other content.