New Zealand B2B Fixed Forecast 2024

Legacy voice decline and economic headwinds offset modest growth in Ethernet and network services through FY28.

David Kennedy · Venture Insights9 September 2024Period: FY248 min read

-1.5%↓

Total B2B fixed services market CAGR (FY23-FY28)

$107m↓

Total B2B voice revenues (FY28)

Locked

+2more stats

Companies covered:

Abstract

The total B2B fixed services market in New Zealand is projected to reach $949 million by FY28, contracting at -1.6% CAGR due to lower economic growth and the phase-out of legacy voice services by Chorus. Total B2B voice revenues are expected to fall at -15.3% 5Y CAGR to FY28. While the Data & Internet market will grow modestly at +0.1% 5Y CAGR, network services will expand at +2.8% CAGR, driven by digital transformation and SD-WAN adoption.

Key Takeaways

The New Zealand B2B fixed market will contract at a -1.5% CAGR to reach $953 million by FY28.
Legacy voice is in structural decline, forecast to drop from $154 million in FY23 to just $13 million in FY28.
Network services represent the primary growth engine, expanding at a 2.8% CAGR to reach $462 million.

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Frequently Asked Questions

The market is entering a period of structural contraction, with a forecast -1.5% CAGR leading to a total market value of $953 million by FY28. Growth is constrained by a weak macroeconomic environment, highlighted by a revised 0.1% GDP growth estimate for 2024.

Network services, specifically managed and professional services, are the primary growth engine with a 2.8% CAGR to reach $462 million by FY28. In contrast, the Data and Internet segment remains nearly flat with a marginal 0.1% 5-year CAGR.

The shift is aggressive, as legacy voice revenue is forecast to collapse from $154 million in FY23 to just $13 million by FY28. By the end of the forecast period, IP-based voice will account for 88% of all remaining B2B voice revenue.

Spark maintains a dominant position with a 46.5% share of total B2B fixed revenue. This leaves One NZ and 2degrees with significantly smaller footprints at 21.0% and 7.6% respectively.

New Zealand B2B Fixed Forecast 2024

Abstract

Key Takeaways

Frequently Asked Questions

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