New Zealand’s (NZ) fixed communication services market is poised for a modest growth, with revenue expected to rise from $1.3 billion in 2024 to $1.4 billion by 2029. This growth is driven by increasing demand for fixed broadband, particularly fiber-to-the-home/business (FTTH/B) connections, while investments in fiber infrastructure continue to advance the country’s high-speed broadband capabilities, says GlobalData, a leading 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% 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% 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, comments: “Fiber lines accounted for about 70% share of total fixed broadband lines in 2023 and will remain the leading broadband technology through to 2029. This growth in fiber 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 fiber build program in February 2024, to expand fiber 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 fiber broadband and exclusive deals on music, movies, and sports.

Zeeshan concludes: “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. As consumer demand for faster and more reliable connectivity intensifies, telecom providers must prioritize expanding fiber networks and innovating service offerings to maintain competitive advantage and meet the evolving needs of both residential and business users.”