Following a marginal decline in 2020 due the COVID-19 outbreak, the total fixed communications services revenue in New Zealand is expected to increase at a compounded annual growth rate (CAGR) of 3.8% during 2020-2025, to reach US$1.3bn in 2025, primarily driven by the growth in fixed broadband segment, according to GlobalData, a leading data and analytics company.

GlobalData’s New Zealand Telecom Operators Country Intelligence Report forecasts that fixed voice service revenue will decline at a CAGR of 0.7% over 2020-2025 due to falling circuit-switched subscriptions and drop in fixed voice average revenue per user (ARPU) levels. On the other hand, fixed broadband service revenue will increase at a CAGR of 5.8% over the same period driven by robust growth in higher ARPU generating fiber-to-the-home (FTTH) subscriptions.

Aasif Iqbal, Telecom Analyst at GlobalData, says: “Fiber lines will account for a majority share of 61.3% of the total fixed broadband lines in 2020 and will continue to rise to account for 75.4% of the total fixed broadband lines in 2025, backed by the rising demand for higher-speed broadband connectivity and the government’s investment in extending fiber network coverage to new areas of the country under the ultra-fast broadband (UFB) and the rural broadband initiative (RBI) initiatives.

“Spark will lead the fixed voice market through 2025, supported by its strong foothold in the circuit-switched segment and growing focus on voice-over Internet protocol (VoIP) services while its leadership in the fixed-broadband segment is supported by its strong focus on fixed network modernization.”