NZ B2B Fixed Forecast & Outlook 2023

Market returning to growth as Ethernet and managed services gains offset structural declines in legacy fixed voice.

David Kennedy · Venture Insights9 February 2024Period: FY23-FY288 min read

0.6%↑

Total B2B Fixed Services Market 5Y CAGR (FY23-FY28)

$494m↑

Forecast Network Services Revenue (FY28)

Locked

+2more stats

Companies covered:

Abstract

This report forecasts the New Zealand B2B fixed services market through FY28, projecting a return to growth with a total market value of $1.1 billion. While legacy fixed voice continues a structural decline, growth is driven by Ethernet, Internet-grade services, and a 3.0% CAGR in the network services category. The analysis segments the market by business size, technology, and industry vertical, highlighting the transition from legacy MPLS/IP-VPN to SD-WAN and cloud-integrated connectivity solutions.

Key Takeaways

The NZ B2B fixed services market is returning to growth, forecast to reach $1.12 billion by FY28 at a 0.6% CAGR.
Network services (managed and professional) is the fastest-growing category at 3.0% CAGR, reaching $494 million by FY28.
Legacy fixed voice revenues are collapsing at a -13.6% CAGR as businesses migrate to lower-cost IP Voice and UC solutions.

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Frequently Asked Questions

The market is returning to growth and is forecast to reach $1.12 billion by FY28. While legacy voice is collapsing at a -13.6% CAGR, this is offset by a 3.0% CAGR in network services and a 3.2% CAGR in internet-grade connectivity.

Managed and professional network services represent the most significant growth engine, projected to reach $494 million by FY28. Enterprise demand is high, with 80% of current Ethernet users planning to increase their spending to support digital transformation.

Spark maintains a 49% share of the total fixed market, but the high-growth network services segment remains fragmented. Over 40% of this category is held by 'Others', providing a clear entry point for specialized ICT and managed service providers.

Price sensitivity varies significantly by segment, with 45% of SMBs rating it as a critical factor compared to 31% of enterprises. Growth is increasingly tied to technology migration, specifically the shift from legacy MPLS to SD-WAN and cloud-integrated solutions.

NZ B2B Fixed Forecast & Outlook 2023

Abstract

Key Takeaways

Frequently Asked Questions

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