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New Zealand mobile services revenue ramps up

New Zealand mobile services revenue ramps up

Mobile services revenue in New Zealand is expected to recover next year

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Mobile services revenue in New Zealand is expected to ramp up between now and 2025, returning to growth after a pandemic-prompted dip to reach a value equivalent to US$1.8 billion.

This is according to industry analyst firm GlobalData, which claims that, following a decline in 2020 primarily due to the impact of the COVID-19 crisis, mobile services revenue in New Zealand is expected to recover next year. 

Indeed, mobile services revenue is anticipated to grow at a compound annual growth rate (CAGR) of 5.5 per cent between 2020-2025, supported by growth in both mobile data as well as mobile voice service revenues.

Mobile data service revenue alone is expected to grow at a CAGR of 9.9 per cent over the forecast period, 2020-2025, driven by a continued rise in smartphone subscriptions, growth in consumption of mobile data services and increases in data average revenue per subscriber (ARPS), the analyst firm noted.

Mobile voice service revenues, meanwhile, are forecast to increase from US$678.2 million in 2020 to US$741.9 million in 2025.  

GlobalData telecom analyst Aasif Iqbal said that 4G services are likely to be the leading mobile technology in New Zealand, with its share of total mobile subscriptions set to grow from 76.2 per cent in 2020 to 79.5 per cent by the end of 2025.

“This growth is primarily supported by the ongoing 4G network coverage expansion by operators like 2degrees and Vodafone New Zealand,” Iqbal said. “As 5G arrived in the country in 2019, GlobalData expects 5G service subscriptions to account for 11.8 per cent share of the total mobile subscriptions by the end of 2025.

“Vodafone will lead the mobile services market in New Zealand in terms of mobile subscriptions in 2020, followed by Spark. 

“Vodafone will remain the market leader through 2025, supported by its strong focus on [the machine to machine and internet of things] M2M/IoT segment and 5G network expansion,” Iqbal added.

The figures supporting GlobalData’s assertions come from its New Zealand Telecom Operators Country Intelligence Report, which also suggested that the total fixed communications services revenue in New Zealand is expected to return to growth over the next four years following a marginal decline this year thanks to the impacts of the pandemic.

Indeed, the local fixed communications services market is expected to enjoy increasing revenues at a compounded annual growth rate (CAGR) of 3.8 per cent during 2020-2025, to reach US$1.3 billion in 2025.


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