Government’s broadband initiatives to drive New Zealand’s fixed market revenue between 2019 and 2024, says GlobalData

The total fixed services revenue in New Zealand is expected to increase at a sluggish compound annual growth rate (CAGR) of 0.8% during 2019-2024, according to GlobalData, a leading data and analytics company.

The revenue growth in the fixed broadband segment will be driven by steady adoption of fiber-to-the-home (FTTH) Ultra-Fast Broadband services, which will offset the decline in revenues from fixed voice segment over the forecast period.

GlobalData’s New Zealand Telecom Operators Country Intelligence Report predicts that the fixed broadband revenue will grow at a CAGR of 2.0% over the forecast period, primarily supported by rapid growth in the fixed broadband subscriptions due to the government’s initiatives to bring high-speed Internet connectivity through expansion of ultrafast broadband (UFB) and rural broadband initiative (RBI) networks across the country. Revenues from fixed voice will decline at a CAGR of 1.2% during the forecast period.

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Both fixed voice and broadband average revenue per user (ARPU) will decline during 2019-2024. Fixed broadband ARPU will decline from $34.47 in 2019 to $33.13 in 2024, as operators offer promotional discounts and reduce tariffs to compete in the market. On the other hand, fixed voice ARPU will fall to $23.12 in 2024 with the growing adoption of mobile and over-the-top (OTT) communication services.

Deepa Dhingra, Telecom Analyst at GlobalData, says: “Spark will lead the fixed voice segment in 2019 supported by its strong foothold in the circuit-switched segment. Moreover, Spark will also top the fixed broadband segment, driven by its continued focus on offering value added services such as access to OTT services to retain its leading position in the fixed broadband segment.”

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