26 Aug 2021
Posted in Technology
New Zealand fixed communication service revenue to grow at 2.9% CAGR over 2021-2026, forecasts GlobalData
The total fixed communication services market in New Zealand is expected to reach US$1.2bn in 2026, increasing at a compounded annual growth rate (CAGR) of 2.9% between 2021 and 2026, supported by revenue growth in both fixed voice and broadband service segments, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s New Zealand Fixed Communication Model indicates that the fixed voice service revenue will increase at a marginal CAGR of 0.9% over 2021-2026, supported by growth in Voice over Internet Protocol (VoIP) subscriptions.
Fixed broadband service revenue will increase at a relatively faster CAGR of 3.7% over 2021-2026, driven by growing demand for high-speed Internet services and rising adoption of higher value fiber broadband services in the country.
Aasif Iqbal, Telecom Analyst at GlobalData, says: “Fiber 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% in 2021 to 76.7% 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 modernize and expand fixed network nationwide. For instance, Spark has completed the first stage of the Optical Transport Network deployment, which is a fiber-based network with self-healing and automatic service restoration capabilities. In addition, the operator aims to transition roughly 90% of its broadband subscribers from copper to fiber and wireless networks by 2023.”