New Zealand Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

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Last updated: 16 May 2022 Update History

Report Pages: 214

New Zealand’s regulators approved tie up between 2degrees and Orcon Group

The principal growth areas in in New Zealand’s telecom market have been in mobile broadband and fibre. The UFB1 rollout was completed in November 2019 and the UFB2 rollout is scheduled to be completed by the end of 2022. Chorus noted that as of the beginning of 2022, 1Gb/s plans accounted for about 23% of all fibre connections, while 43% of business customers adopted a gigabit service.

New Zealand’s mobile market continues to undergo significant developments. There have been considerable gains made in LTE services, with effective competition between Spark, Vodafone NZ, and 2degrees. The widening coverage of LTE networks has been supported by the Rural Broadband Initiative rollout, which added a significant number of mobile sites to new or underserved areas. As the initiative is winding down, this has enabled the participating telcos to invest in NB-IoT and other platforms. Vodafone NZ expects to extend its NB-IoT footprint to cover at least 60% of the country by 2024.

The market is undergoing additional consolidation, with approval of the merger between 2degrees and Orcon Group having been granted by regulators in May 2022. This will create the country’s third-largest integrated telco, offering fixed and mobile services in competition with Spark and Vodafone NZ. The merger proposal came fast of the heels of Vocus Group and its local subsidiary Orcon having acquired 2degrees from Trilogy International in December 2021. This deal created a new company, Voyage Digital.

Key developments:

  • Google to lay the Topaz cable connecting Canada with Honolulu, Sydney, and Auckland;
  • Trustpower sells its retail business to Mercury NZ for NZ$441 million;
  • Trilogy International sells 2degrees;
  • New Zealand to be connected to Australia and Chile via the 14,810km Humboldt cable in early 2025;
  • Chorus begins closing down copper network as it transitions to an all-fibre network;
  • Government allocates 3.5GHz spectrum after Covid-19 crisis forces cancellation of a planned 5G auction;
  • Spark extends the reach of its 5G service; stops providing PSTN services;
  • 2degrees’ network covering 98.5% of the population;
  • Report update includes ComCom and Statistics New Zealand data for 2020, operator data to March 2022, recent market developments.

Companies mentioned in this report:

Spark New Zealand, Chorus, Vodafone 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

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