New Zealand’s telecommunications market is entering a new phase as fibre networks mature, satellite broadband expands and competition shifts beyond traditional infrastructure, according to the Commerce Commission’s 2025 Telecommunications Monitoring Report.
The report says the country’s broadband and mobile networks are among the strongest they have ever been. Fibre now dominates fixed broadband, while 5G coverage continues to expand. At the same time, low Earth orbit (LEO) satellite services are emerging as a viable alternative for rural users, changing the competitive landscape.
The regulator said future growth will depend less on building new networks and more on improving consumer outcomes, expanding digital inclusion and adopting new technologies.
One of the biggest changes highlighted in the report is the rapid growth of satellite broadband. More than half of rural households using LEO satellite services switched from copper connections. The trend reflects growing demand for faster and more reliable internet in remote communities, where fixed infrastructure remains limited.
Fibre continues to underpin New Zealand’s broadband market. Around 85% of addresses can now access regulated fibre services. Performance also improved during the year, with Fibre 300 and Fibre Max plans supporting increasingly data-intensive applications for homes and businesses. Fixed wireless access also continued to gain users as an alternative broadband option.
The mobile market also recorded steady progress. Fifth-generation (5G) services now cover 51% of the population, while 4G coverage has reached 99%. Average mobile download speeds rose 23% over the past year. Mobile operators are also preparing to retire legacy 3G networks while expanding satellite-enabled mobile connectivity.
Despite improvements in network performance, the report points to continuing consumer challenges. Mobile satisfaction remains below earlier levels, and many users reported service issues over the past six months. Rural consumers were generally less satisfied than urban users, particularly with network coverage and reliability.
Affordability also remains a concern. While competition has increased and pricing remains internationally competitive, some households continue to face barriers to accessing high-quality broadband services. Consumers also remain reluctant to switch providers despite the availability of competing offers. Price remains the main reason for those who do change operators.
The report also highlights the evolution of New Zealand’s telecom market. Fibre, fixed wireless, satellite and emerging AI-enabled services are expected to compete alongside each other rather than replace one another. The Commission said regulation will increasingly focus on maintaining competition while ensuring consumers benefit from advances in connectivity and digital services.
