UFB Market to 2020 and beyond – Why the Kiwis are winning…

Structural separation and the UFB initiative have transformed New Zealand's fixed broadband into a highly competitive market.

Vinay Chhoda · Venture Insights1 August 2017Period: August 201712 min read

Last updated 10 June 2026

80%↑

UFB network rollout completion status (August 2017)

35%→

UFB take-up rate compared to NBN's 44% (2017)

Locked

Companies covered:ChorusSparkTelecom New ZealandVodafoneVocus2DegreesMyRepublicCrown Fibre HoldingsCrown Infrastructure Partners

Abstract

This report analyses the evolution and success of New Zealand’s Ultra-fast Broadband (UFB) initiative, which is on track to reach 80% of the population by the end of 2019. It examines the structural separation of Telecom New Zealand into Spark and Chorus, the regulatory shift toward utility-style pricing, and the competitive dynamics between 87 active Retail Service Providers. The brief also provides a comparative analysis against Australia's NBN, highlighting differences in technology, funding models, and take-up rates.

Key Takeaways

New Zealand's UFB rollout is on track to reach 80% of the population by 2019, outperforming the Australian NBN's 49% completion rate.
The NZ Government has extended the UFB coverage target to 84% of the population by 2024.
Structural separation has enabled 87 RSPs to enter the market, fostering fierce competition and innovative utility bundling.

stakeholder implications · PDF download

Frequently Asked Questions

The UFB network reached 80% population coverage by August 2017, placing it well ahead of the original 2019 deadline. The government has since expanded the program's scope to reach 84% of the population by 2024.

Structural separation has created a highly fragmented and competitive market with 87 active Retail Service Providers. These providers compete for a subscriber base that currently reflects a 35% UFB take-up rate.

There is a significant risk that Chorus and other Local Fibre Companies will increase wholesale prices after 2019. To mitigate this, the government is implementing a utility-style regulatory framework to prevent a regulatory vacuum in 2020.

New Zealand’s UFB take-up rate of 35% currently trails the Australian NBN’s 44% adoption level. However, the NZ model differs by utilizing 16,000 fibre flexibility points and a de-risked private sector funding structure.

UFB Market to 2020 and beyond – Why the Kiwis are winning…

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team