New Zealand Telecoms Industry Report: Transformations, Acquisitions, and Growth Prospects


Idem Est Research & Advisory

17 July 2023, 16:00 AEST

New Zealand Telecom Industry Market Report forecasts 9m mobile and fixed broadband subscribers by 2030


New Zealand Telecoms Industry Report: Transformations, Acquisitions, and Growth Prospects

Key Highlights from the New Zealand Telecoms Industry Report:

Game-Changing Mergers and Acquisitions: Over the last four years, infrastructure funds have collectively invested over NZD 11 billion in acquiring assets across retail telecommunications operators and digital infrastructure, including mobile towers and fibre infrastructure. This new ownership marks the beginning of a new era of investment and infrastructure development.

Infrastructure Divestments by Spark, One NZ, and 2degrees: Spark, One NZ, and 2degrees have embarked on divestments of passive tower infrastructure, paving the way for strategic transformations and fresh opportunities.

Trustpower Customer Base Acquired: Mercury successfully acquires Trustpower’s retail customer base, expanding its reach and enhancing its service offerings.

Broadband Revolution Achieved: The completion of the UFB project ensures world-class broadband speeds across New Zealand, empowering individuals, businesses, and communities with 80% of users on 300Mbps speed plans or higher. With the completion of UFB2, New Zealand must continue to expand its fibre footprint in more regional and remote areas, guided by the government and councils through co-investment models. Increasing fibre penetration will also support fibre infrastructure to mobile towers, which currently lags behind other countries in the region.

The Future Beckons: Idem Est Research Forecasts and Insights

Idem Est Research predicts strong overall growth in the telecoms market until 2030, with more investments required in mobile networks and the nationwide phasing out of 3G by 2025.

Capex Transformation: After experiencing a Capex hyper-cycle that peaked in 2019, New Zealand is transitioning to a more sustainable level, with an expected Capex to GDP ratio of 22% through to 2030. Chorus will continue to invest significantly in fibre infrastructure until 2024, while Spark, One NZ, and 2degrees focus primarily on 5G advancements, though 5G coverage lags behind.

Data Dominance: The increasing popularity of social media platforms, online gaming, and streaming services has fueled the demand for data services in the country. However, Kiwis are among the lowest mobile data users in the region, with average monthly downloads of under 5GB compared to other markets exceeding 20GB.

Infrastructure: The Ultra-Fast Broadband Initiative, a groundbreaking program by the New Zealand Government, has been a game-changer, deploying fibre-to-the-home networks across 87% of the population. With over 1.3 million premises connected, the broadband market is now driven by new constructions and urban redevelopment, boosting fixed-broadband subscribers.

Government Support: The New Zealand government needs to focus on the last 10%, fostering co-investments from infrastructure operators, towercos, and councils to bring new mobile and fibre coverage. These measures should facilitate infrastructure development and improve connectivity in underserved areas.

Future Prospects: Idem Est Research’s analysis forecasts a positive outlook for the New Zealand telecom market despite a tapering Capex cycle. Telecom operators should focus on lower-income households for fixed broadband to increase penetration. Additionally, progress in 5G rollout, “fiberization” of mobile towers, increased focus on cybersecurity, and the integration of artificial intelligence are anticipated to shape the industry’s future landscape.

“Idem Est Research forecasts that mobile subscribers will reach 7.3 million by 2030, while the fixed broadband market will continue to increase fibre penetration into more households, with over 80% of households on plans over 300Mbps. The telecommunications industry is expected to maintain revenue growth momentum, with an average growth rate of 2% from 2023 to 2030,” says Landry Fevre, Director of Idem Est Research & Advisory.

Idem Est Research and Advisory’s report on the New Zealand telecom market serves as a valuable resource for industry stakeholders, investors, and policymakers looking to gain a comprehensive understanding of the sector. The analysis highlights the immense potential and opportunities for both local and international players to contribute to the development and innovation of the telecom industry in New Zealand.


2degrees, Brookfield, Crown Infrastructure Partner, Connexa, Crown Fibre Holding, Chorus, Enable Networks, Infratil, Mercury, Northpower, One NZ, Telecom NZ, Snap, Spark, TelstraClear, Trustpower, Tuatahi First Fibre, Ultra-Fast Fibre, Vocus, Vodafone, WEL Networks

Download the full report:

About Idem Est Research Advisory
Idem Est Research and Advisory is a boutique telecommunications and digital infrastructure market research and advisory. Idem Est Research provides leading telecoms research helping our clients stay updated on the latest telecoms sector and digital infrastructure developments. The reports provide analyses of mobile and broadband markets, capital expenditure, forecasts, key telecom trends and thematic such as 5G and telecoms digital infrastructure, as well as other statistics of the telco industry.

Our independent approach allows us to place the trends and drivers fully into context and analyse the industry from different, unbiased perspectives. Alongside the facts and figures, Idem Est Research draws on three decades of experience to provide incisive commentary and analysis. This brings visibility to the business drivers, challenges, decision-making and future direction of the telecoms sector.
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Contact Information:
For media inquiries, please contact:
Landry Fevre

SOURCE: Idem Est Research & Advisory

This release was published on openPR

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