New Zealand Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Last updated: 22 Sep 2023 Update History

Report Status: Current

Report Pages: 241

Analyst: Henry Lancaster

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Summary
Table Of Contents

New Zealand’s Chorus to close copper network within a decade

The principal growth areas in New Zealand’s telecom market remain in mobile broadband and fibre, where most investment among operators has been concentrated. With the UFB rollout having been completed in December 2022, Chorus expected that 95% of the population could be covered with fibre in the short-term.

New Zealand’s mobile market continues to undergo significant developments. There have been considerable gains made in LTE services, with effective competition between Spark, One NZ, and 2degrees. Although 2degrees only has about 22% of the market, it manages mobile infrastructure on a par with the two major competitors. Having merged with Vocus, 2degrees also picked up the fixed broadband subscriber base of MyRepublic. All three MNOs expanded their 5G footprint in 2023, helped by the allocation of spectrum in the 3.5GHz range early in the year.

Key developments:

Vodafone New Zealand rebrands as One New Zealand.
Infratil Group acquires Brookfield's stake in One New Zealand.
MyRepublic exits New Zealand, handing its broadband subscriber base to 2degrees.
Government allocates 3.5GHz spectrum to the MNOs, with funds earmarked to upgrading networks in rural areas.
Spectrum in the 24-30GHz range to be allocated for mobile and satellite services from 2026.
Mighty Ape launches its MVNO Mighty Mobile on the One NZ network.
Chorus to close down the copper network by 2033.
Spark extends the reach of its 5G service.
Report update includes Statistics New Zealand data for 2022, ComCom’s June 2022 market report, Crown Infrastructure Partners’ data to June 2023, NZ Telecommunications Forum’s 2022 report, operator data to June 2023, recent market developments.

Companies mentioned in this report:

Spark New Zealand, Chorus, One New Zealand, 2degrees, Orcon, Snap, CallPlus, CityLink, Vector, NOW, Airnet, WorldxChange Communications, Vocus, Skinny, Compass, MyRepublic, Skinny, Slingshot, Trustpower, Enable Networks, Northpower Fibre and UltraFast Fibre

Key statistics
Telecommunications market

Market analysis

Regulatory environment

Fixed-line developments

UBA, UCLL, LLU and UBS access market developments
Minor changes post Spark and Chorus demerger
Telecommunications Service Obligations (TSO)
Telecommunications Development Levy
Telecommunications Relay Service (TRS)
Telecommunications Dispute Resolution (TDR)
Local and Mobile Number Portability (LMNP)

Mobile network developments

Spectrum
Spectrum auctions
Management Rights Regime
Mobile Termination Access Services (MTAS)
Mobile Termination Rates (MTRs)
Mobile Number Portability (MNP)

Mobile market

Mobile statistics

Mobile voice
Mobile data
Mobile broadband

Mobile infrastructure

5G
4G (LTE)
3G
Other infrastructure developments

Major mobile operators

Spark Mobile
One New Zealand
2degrees Mobile
Mobile Virtual Network Operators (MVNOs)

Mobile content and applications

Mobile banking and payments
Internet of Things (IoT)
Mobile satellite
Mobile applications

Fixed-line broadband market

Introduction and statistical overview

Wholesale pricing
Broadband statistics

Hybrid Fibre Coax (HFC) networks

One NZ

Digital Subscriber Line (DSL) networks
Fibre-to-the-Premises (FttP) networks

Wholesale fibre

Other fixed broadband services

Wi-Fi/ WiMAX
Satellite broadband

Digital economy

Market overview
E-commerce and M-commerce

Streaming Services

E-health
E-learning
E-government

Fixed network operators

Spark
Vocus

Telecommunications infrastructure

Overview of the national telecom network
UFB

UFB data rates
UFB2/2+ program
New networks adding financial value to the economy

Wholesale fibre
Spark Joint Venture with Electra Group
Rural Broadband Initiative (RBI)
International infrastructure

Tasman Global Access (TGA)
Southern Cross Cable (SCCN) and Southern Cross NEXT
Hawaiki Cable
Topaz
Humboldt

Smart infrastructure

Connected cars
Smart electricity meters
Smart grids
Smart cities

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities – New Zealand – 2023 (e)
Table 2 – Development of telecom sector revenue by type (NZ$ billion) – 2012 – 2022
Table 3 – Development of telecom investment by sector (NZ$ million) – 2012 – 2022
Table 4 – Change in the number of subscribers by sector (million) – 2012 – 2022
Table 5 – Annual cost of TDL – 2012 – 2022
Table 6 – Proportion of prepaid mobile subscribers by data plan – 2019– 2022
Table 7 – Proportion of contract mobile subscribers by data plan – 2019– 2022
Table 8 – Development of mobile market revenue – 2012 – 2022
Table 9 – Change in mobile voice traffic – 2012 – 2022
Table 10 – Mobile voice traffic use per connection – 2012 – 2021
Table 11 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 12 – Market share of mobile subscribers per operator – 2012 – 2022
Table 13 – Annual change in the number of mobile subscribers per major operator – 2012 – 2020
Table 14 – Change in average mobile data usage by prepaid/contract subscribers (GB/ subscriber/month) – 2012 – 2022
Table 15 – Decline of SMS traffic – 2012 – 2022
Table 16 – Growth in the number of active mobile broadband subscribers and penetration – 2012 – 2027
Table 17 – Increase in the number of fixed wires broadband subscribers – 2012 – 2022
Table 18 – Development of Spark’s mobile service revenue – 2012 – 2023
Table 19 – Development of Spark’s capex (NZ$ million) – 2012 – 2023
Table 20 – Growth in the number of Spark’s active mobile subscribers – 2012 – 2023
Table 21 – Development of Spark Mobile’s ARPU (NZ$ / month) – 2012 – 2023
Table 22 – Change in the number of Spark’s prepaid and postpaid subscribers – 2011 – 2023
Table 23 – Change in the proportion of Spark’s prepaid and postpaid subscribers – 2012 – 2023
Table 24 – Change in the number of One NZ’s mobile subscribers – 2012 – 2021
Table 25 – Development of One NZ’s financial data (NZ$ million) – 2012 – 2022
Table 26 – Development of One NZ’s revenue by type (NZ$ million) – 2020 – 2023
Table 27 – Change in One NZ’s cash investment – 2015 – 2023
Table 28 – Growth in the number of 2degrees’ mobile subscribers – 2012 – 2021
Table 29 – Change in the proportion of 2degrees prepaid and postpaid subscribers – 2012 – 2021
Table 30 – 2degrees key financial data (US$ million) – 2017 – 2022
Table 31 – Change in the number of Vocus’s mobile subscribers – 2017 – 2021
Table 32 – Change in fixed-broadband penetration by access platform (OECD data) – 2012 – 2022
Table 33 – Change in the number of fixed-broadband subscribers and penetration – 2012 – 2027
Table 34 – Decline in the number of dial-up internet subscribers – 2012 – 2018
Table 35 – Growth in average data consumption per month – 2012 – 2022
Table 36 – DSL, cable, and fibre broadband subscribers (thousand) – 2012 – 2023
Table 37 – Change in the market share of broadband connections by technology – 2012 – 2021
Table 38 – Change in fixed-line broadband market share by operator – 2015 – 2021
Table 39 – Change in the proportion of broadband subscriptions by data rate – 2012 – 2018
Table 40 – Change in the number of fixed-broadband connections by data cap (per month) (thousand) – 2012 – 2018
Table 41 – Change in the proportion of fixed-broadband connections by data cap (per month) – 2012 – 2018
Table 42 – Change in the market share of internet subscribers by residential/business segment – 2012 – 2018
Table 43 – Change in the number of One NZ’s fixed broadband subscribers – 2012 – 2019
Table 44 – Change in the number of DSL and VDSL connections – 2020 – 2023
Table 45 – Change in the number of Vocus’s broadband subscribers – 2016 – 2021
Table 46 – Change in the number of Spark’s broadband subscribers by platform (thousand) – 2014 – 2023
Table 47 – Development of Spark’s broadband revenue – 2012 – 2023
Table 48 – Increase in the number of UFB fibre subscribers – 2012 – 2022
Table 49 – Development of Spark’s financial data (NZ$ million) – 2012 – 2023
Table 50 – Annual change in Spark’s financial data – 2012 – 2023
Table 51 – Change in Spark’s revenue by sector (NZ$ million) – 2012 – 2023
Table 52 – Spark’s operating expenses by sector (NZ$ million) – 2012 – 2023
Table 53 – Change in the number of Spark’s fixed lines by division (thousand) – 2012 – 2021
Table 54 – Annual change in Spark’s fixed lines by division – 2012 – 2021
Table 55 – Change in the number of Spark’s voice connections by type (thousand) – 2018 – 2023
Table 56 – Change in Vocus’s financial data (NZ$ million) – 2016 – 2021
Table 57 – Change in the number of fixed-line accesses and teledensity – 2012 – 2027
Table 58 – Fixed-line voice traffic use by type (billion minutes) – 2012 – 2022
Table 59 – Fixed-line retail revenue – 2012 – 2022
Table 60 – Proportion of addresses taking up a UFB service – 2013 – 2023
Table 61 – Proportion of UFB connections by data rate – 2019 – 2023
Table 62 – Change in the number of Chorus’s connections by type (million) – 2013 – 2023
Table 63 – Development of Chorus’s financial data (NZ$ million) – 2013 – 2023
Table 64 –Chorus’s revenue by type (NZ$ million) – 2022 – 2023
Table 65 – Historic - Internet users and penetration – 2001 – 2016
Table 66 – Historic - Telecom investment by sector (NZ$ million) – 2006 – 2011
Table 67 – Historic - Subscriptions to services by sector (million) – 2006 – 2011
Table 68 – Historic - Regulated UCLL and UBA pricing (NZ$ per month per line) – 2010 – 2012; 2014 – 2015
Table 69 – Historic - Sprint payments from TRS/TSO – 2005 – 2014
Table 70 – Historic - Spark and One network termination rates (Cents per minute) – 2011 – 2014
Table 71 – Historic - Mobile voice traffic – 2006 – 2011
Table 72 – Historic - Mobile voice traffic use per connection – 2006 – 2011
Table 73 – Historic - Mobile subscribers and penetration – 2001 – 2011
Table 74 – Historic - Annual change in mobile subscribers per major operator – 2002 – 2009
Table 75 – Historic - Market share of mobile subscribers per operator – 1996 – 2011
Table 76 – Historic - Spark prepaid versus postpaid subscribers – 2005 – 2011
Table 77 – Historic - One prepaid versus postpaid subscribers – 2005 – 2016
Table 78 – Historic - Spark and One network termination rates – 2010 – 2014
Table 79 – Historic - Mobile market revenue – 2006 – 2011
Table 80 – Historic - Mobile broadband traffic – 2010 – 2014
Table 81 – Historic - Spark mobile subscribers – 2001 – 2009
Table 82 – Historic - Estimated New Zealand population shopping online – 2008 - 2015
Table 83 – Historic - Spark fixed lines in operation by division – 2008 – 2012
Table 84 – Historic - Spark capital expenditure – 1999 – 2011
Table 85 – Historic - Local access lines – 2002 – 2011
Table 86 – Historic - Local service calling revenue – 2002 – 2011
Table 87 – Historic - Spark’s mobile subscribers – 2005 – 2011
Table 88 – Historic - Fixed-line voice traffic use per connection – 2008 – 2016
Table 89 – Historic - Change in the number of UCLL lines – 2009 – 2018
Table 90 – Historic - Development of telecom sector revenue – 2009 – 2011
Table 91 – Historic - Development of SMS traffic – 2009 – 2011
Table 92 – Historic - Development of Spark’s mobile service revenue – 2009 – 2011
Table 93 – Historic - Development of Spark Mobile’s ARPU (NZ$ / month) – 2008 – 2011
Table 94 – Historic - Growth in the number of 2degrees’ mobile subscribers – 2009 – 2011
Table 95 – Historic - Change in the market share of internet subscribers by residential/business segment – 2009 – 2011
Table 96 – Historic - Development of Spark’s financial data (NZ$ million) – 2009 – 2011
Table 97 – Historic - Fixed-line voice traffic use by type (billion minutes) – 2006 – 2011
Table 98 – Historic - Fixed-line retail revenue – 2006 – 2011

List of Charts

Chart 1 – Development of telecom sector revenue – 2012 – 2022
Chart 2 – Development of telecom investment by sector – 2012 – 2022
Chart 3 – Change in the number of subscribers by sector – 2012 – 2022
Chart 4 - Spectrum holdings
Chart 5 – Proportion of prepaid mobile subscribers by data plan – 2019– 2022
Chart 6 – Proportion of contract mobile subscribers by data plan – 2019– 2022
Chart 7 – Development of mobile market revenue – 2012 – 2022
Chart 8 – Change in mobile voice traffic – 2012 – 2022
Chart 9 – Mobile voice traffic use per connection – 2012 – 2021
Chart 10 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 11 – Market share of mobile subscribers per operator – 2012 – 2022
Chart 12 – Change in average mobile data usage by prepaid/contract subscribers – 2012 – 2022
Chart 13 – Decline of SMS traffic – 2012 – 2022
Chart 14 – Growth in the number of active mobile broadband subscribers and penetration – 2012 – 2027
Chart 15 – Increase in the number of fixed wires broadband subscribers – 2012 – 2022
Chart 16 – Development of Spark’s mobile service revenue – 2012 – 2023
Chart 17 – Development of Spark’s capex – 2012 – 2023
Chart 18 – Growth in the number of Spark’s mobile subscribers – 2012 – 2023
Chart 19 – Development of Spark Mobile’s ARPU – 2012 – 2023
Chart 20 – Change in the number of Spark’s prepaid and postpaid subscribers – 2011 – 2023
Chart 21 – Change in the proportion of Spark’s prepaid and postpaid subscribers – 2012 – 2023
Chart 22 – Development of One NZ’s financial data – 2012 – 2023
Chart 23 – Development of One NZ’s revenue by type (NZ$ million) – 2020 – 2023
Chart 24 – Change in One NZ’s cash investment – 2015 – 2023
Chart 25 – Growth in the number of 2degrees’ mobile subscribers – 2012 – 2021
Chart 26 – Change in the proportion of 2degrees prepaid and postpaid subscribers – 2012 – 2021
Chart 27 – 2degrees key financial data – 2017 – 2022
Chart 28 – Change in the number of Vocus’s mobile subscribers – 2017 – 2021
Chart 29 – Change in fixed-broadband penetration by access platform (OECD data) – 2012 – 2022
Chart 30 – Change in the number of fixed-broadband subscribers and penetration – 2012 – 2027
Chart 31 – Decline in the number of dial-up internet subscribers – 2012 – 2018
Chart 32 – Growth in average data consumption per month – 2012 – 2022
Chart 33 – DSL, cable, and fibre broadband subscribers – 2012 – 2023
Chart 34 – Change in the market share of broadband connections by technology – 2012 – 2021
Chart 35 – Change in fixed-line broadband market share by operator – 2015 – 2021
Chart 36 – Change in the proportion of broadband subscriptions by data rate – 2012 – 2018
Chart 37 – Change in the number of fixed-broadband connections by data cap (per month) – 2012 – 2018
Chart 38 – Change in the proportion of fixed-broadband connections by data cap (per month) – 2012 – 2018
Chart 39 – Change in the market share of internet subscribers by residential/business segment – 2012 – 2018
Chart 40 – Change in the number of One NZ’s fixed broadband subscribers – 2012 – 2019
Chart 41 – Change in the number of Vocus’s broadband subscribers – 2016 – 2021
Chart 42 – Change in the number of Spark’s broadband subscribers by platform – 2014 – 2023
Chart 43 – Development of Spark’s broadband revenue – 2012 – 2023
Chart 44 – Increase in the number of UFB fibre subscribers – 2012 – 2022
Chart 45 – Development of Spark’s financial data – 2012 – 2023
Chart 46 – Change in Spark’s revenue by sector – 2012 – 2023
Chart 47 – Change in the number of Spark’s voice connections by type (thousand) – 2018 – 2023
Chart 48 – Change in Vocus’s financial data (NZ$ million) – 2016 – 2021
Chart 49 – Change in the number of fixed-line accesses and teledensity – 2012 – 2027
Chart 50 – Fixed-line voice traffic use by type – 2012 – 2022
Chart 51 – Fixed-line retail revenue – 2012 – 2022
Chart 52 – Proportion of addresses taking up a UFB service – 2013 – 2023
Chart 53 – Proportion of UFB connections by data rate – 2019 – 2023
Chart 54 – Change in the number of Chorus’s connections by type (million) – 2013 – 2023
Chart 55 – Development of Chorus’s financial data (NZ$ million) – 2013 – 2023

List of Exhibits

Exhibit 1 – UBA services background
Exhibit 2 – Regulatory timeline – scheduled UBA and other services launch by service variant
Exhibit 3 – Liable operators for the TDL levy (2022)
Exhibit 4 – One NZ’s spectrum licences
Exhibit 5 – Brief history timeline of e-government strategies in New Zealand
Exhibit 6 – Previous government initiatives (historic) – Digital Strategy 2.0
Exhibit 7 – The 33 UFB regions by UFB LFC deployment by company

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New Zealand Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

New Zealand’s Chorus to close copper network within a decade

Key developments:

Companies mentioned in this report:

Key statistics

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Digital economy

Fixed network operators

Telecommunications infrastructure

Appendix – Historic data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views