New Zealand’s telco market is relatively flat as the country pulls out of COVID-19, but its Ultra-Fast Broadband programme has been regarded as a resounding success.
The 2022 IDC Telecommunications Market Analysis and Forecast Report – Worth Its Weight in Gold – notes marginal growth in the sector of 0.4 per cent for the year to June 2022.
IDC forecasts the New Zealand telecommunications market will enjoy a Compound Annual Growth Rate (CAGR) of 3.2 per cent until 2026. IDC forecasts this growth to be driven by increasing broadband connections and broadband ARPU.
2022 marks the final year of New Zealand’s decade-long Ultra-Fast Broadband programme.
Uptake has smashed initial targets and has reached 70 per cent as at June 2022.
Telco Chorus says over 90 per cent of its fibre connections are now at speeds of 300Mbps or more.
“This programme, alongside the continuing investment into rural broadband, enables New Zealanders to engage more fully into digital life,” says IDC. “It has been a year of renewed focus on digital innovation.”
“While geo-political pressures, inflation, and supply chain disruptions are causing some headwinds, the telcos are recognising the need to execute on digital first strategies and grow digital product and service revenue,” says Monica Collier, Associate Research Director for IDC Australia & New Zealand.
New Zealand’s broadband is set to improve further due to Low Earth Orbit satellites such as Starlink.
“LEO satellite broadband has the potential to narrow the digital divide in New Zealand by offering a new choice for these customers allowing them the same level of online presence as their well-connected urban cousins, enabling them to work, learn and entertain from home,” says Wiji Gedera, Senior Market Analyst for IDC Australia & New Zealand.
