Forecast: NZ fixed comms market set for modest growth
August 30, 2024
New Zealand’s (NZ) fixed communication services market is poised for a modest growth, with revenue expected to rise from $1.3 billion (€1.1bn) in 2024 to $1.4 billion by 2029. This growth is driven by increasing demand for fixed broadband, particularly fibre-to-the-home/business (FTTH/B) connections, while investments in fibre infrastructure continue to advance the country’s high-speed broadband capabilities, reports GlobalData, a the data and analytics company.
GlobalData’s latest New Zealand Fixed Communications Forecast (Q2 2024) reveals that fixed voice services revenue will witness a marginal compound annual growth rate of 0.9 per cent during 2024-2029 period, given the steady decline in circuit-switched subscriptions and sluggish growth in packet switched (VoIP) subscriptions.
Fixed broadband service revenue is expected to increase at a CAGR of 1.6 percent over the forecast period, mainly supported by the growth in fixed wireless and FTTH/B subscriptions, on the back of government efforts to expand broadband connectivity in the country.
Sarwat Zeeshan, Telecom Analyst at GlobalData, commented: “Fibre lines accounted for about 70 per cent share of total fixed broadband lines in 2023 and will remain the leading broadband technology through to 2029. This growth in fibre lines will be driven by growing demand for high-speed broadband connectivity coupled with continued improvements in fiber broadband infrastructure in the country.”
For instance, Chorus, a wholesale fixed line provider, launched a fibre build programme in February 2024, to expand fibre internet coverage to 10,000 additional homes and businesses, encompassing 59 communities across the country.
Vector Communications leads the fixed voice services market, by subscription share. Spark, on the other hand, leads the fixed broadband service market in terms of subscription share, supported by its strong position in the FTTH service segment and its promotional plans with fibre broadband and exclusive deals on music, movies and sports.
Zeeshan concluded: “The ongoing shift towards fibre broadband is reshaping New Zealand’s fixed communication landscape, with FTTH/B becoming the backbone of high-speed internet access. As consumer demand for faster and more reliable connectivity intensifies, telecom providers must prioritize expanding fibre networks and innovating service offerings to maintain competitive advantage and meet the evolving needs of both residential and business users.”