POLITICAL ECONOMY

New Zealand Set For Fixed Communications Growth

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By Jonathan Easton

The fixed communications market in New Zealand is set to reach US$1.2 billion by 2026.

According to GlobalData, the market is set for a compounded annual growth rate (CAGR) of 2.9 per cent between 2021 and 2026. This will be supported by revenue growth in both fixed voice and broadband service segments.

Fixed broadband service revenue will increase at a CAGR of 3.7 per cent over the forecast period, driven by growing demand for high-speed Internet services and rising adoption of higher value fibre broadband services in the country. The fixed voice services revenue meanwhile will increase at a marginal CAGR of 0.9 per cent over 2021-2026,

Telecom Analyst at GlobalData, Aasif Iqbal said: “Fibre lines will remain the most prominent fixed broadband technology over the forecast period, with its share of total fixed broadband access lines increasing from 66.8 percent in 2021 to 76.7 per cent in 2026, supported by the ongoing efforts from the local government and operators like Vodafone New Zealand, Spark, and 2degrees expanding broadband coverage services in the country.

“Spark New Zealand will lead the fixed voice services segment in terms of subscriptions in 2021, given its monopoly in the traditional circuit-switched segment and strong presence in the VoIP segment. The operator will also lead the fixed broadband services market in 2021, driven by efforts to modernise and expand fixed network nationwide. For instance, Spark has completed the first stage of the Optical Transport Network deployment, which is a fibre-based network with self-healing and automatic service restoration capabilities. In addition, the operator aims to transition roughly 90 per cent of its broadband subscribers from copper to fibre and wireless networks by 2023.”

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