Question 1

Is there any actual growth left in the New Zealand B2B fixed market?

Accepted Answer

While the total market is contracting at a -0.5% 5Y CAGR, growth is concentrated in network services, which will reach $449 million by FY26. This 1.6% CAGR in managed and professional services is the primary offset to the structural decline in legacy connectivity.

Question 2

Which business size offers the best returns for service providers?

Accepted Answer

The enterprise segment with over 100 employees is the most resilient, projected to grow at a 0.7% 5Y CAGR through FY26. This segment was valued at $697 million in FY22 and continues to outperform the SMB market due to sustained digital transformation spending.

Question 3

How quickly is the transition to digital voice services occurring?

Accepted Answer

Traditional fixed voice is declining at a -4.6% CAGR as organizations abandon legacy PSTN and ISDN lines. Conversely, IP Voice revenue is growing at a 10.5% CAGR, representing a critical migration path for providers to retain their existing voice customer base.

Question 4

What is the competitive landscape for B2B fixed services?

Accepted Answer

The market remains highly concentrated, with Spark holding a dominant 44% revenue share as of FY22. Vodafone NZ and 2degrees trail significantly at 24% and 7% respectively, highlighting a steep climb for challengers in the enterprise space.

B2B Fixed Services in NZ: Market Forecast

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