Lining up: Rising demand for fixed line broadband connections has driven revenue growth

Revenue for the Wired Telecommunications Network Operation industry has grown over the past five years, despite households and businesses having continued to disconnect their fixed line telephone services in favour of mobile subscriptions. This revenue growth has been due to increased demand for broadband connections over the past five years, which include newer broadband technologies such as very high-speed digital subscriber line connections and fibre connections. These connection types have facilitated higher data transmission speeds and have been catering better to the public's growing demand for faster download speeds and higher data limits. Overall, industry revenue is expected to grow at an annualised 1.1% over the five years through 2017-18, to reach $1.37 more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Demand for faster internet speeds and higher data limits has driven revenue growth
  • Industry firms have faced strong competition from providers of wireless broadband
  • A stronger uptake of fibre connections is forecast to support industry profitability
  • Industry Report - Industry Investment Chapter

    The industry is highly capital-intensive. For every dollar spent on wages, an estimated $0.83 will be invested in capital costs in 2017-18. The industry is strongly reliant on network infrastructure for delivering services. Maintaining and upgrading infrastructure in line with new technological advancements is highly capital-intensive, as project costs can escalate well into the billions of dollars. The rollout of the Ultra-Fast Broadband (UFB) network and the Rural Broadband Initiative have significantly boosted capital intensity over the past five years. Capital intensity has also trended upwards over the period as a result of more industry jobs becoming automated, reducing the industry's dependence on labour...purchase to read more.

    Additional Insights for the Wired Telecommunications Network Operation Industry

    IBISWorld has determined the most important Key Success Factors for the Wired Telecommunications Network Operation are:

  • Ability to quickly adopt new technology
  • Ready access to investment funding
  • Development of a symbiotic relationship with another industry
  • IBISWorld analysts also discuss how external factors such as Households with internet access and Number of households in the Wired Telecommunications Network Operation industry impact industry performance..

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    What's in this report

    What is the Wired Telecommunications Network Operation in New Zealand Industry?

    Industry operators provide voice and data services via landlines, microwaves or satellite link-ups. Services include fixed-wire telephony, wired network and cable services, wired international telephone network operation and the renting of installed fibre capacity. Industry participants operate and maintain their own wired network infrastructure. Spare capacity is sold to other telecommunications carriers or resellers.

    Industry Products
  • Copper network services
  • Fibre network services
  • Value-added network services
  • Field services
  • Other services
  • Industry Activities
  • Wired network communication service provision
  • Renting of installed fibre capacity
  • Data cable communication service provision
  • Voice over Internet Protocol (VoIP) provision
  • Integrated services digital network provision
  • Payphone operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Households with internet access
  • Number of households
  • Mobile telecommunications density
  • Number of businesses

  • Current Performance
  • Rising internet penetration
  • Profitability and competition
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structure
  • Potential obstacles
  • Table: Wired Telecommunications Network Operation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wired Telecommunications Network Operation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Other Telecommunications Services in New Zealand
  • Online Shopping in New Zealand
  • Data Processing and Web Hosting Services in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Construction in New Zealand

  • Products & Services
  • Copper network services
  • Fibre network services
  • Field services
  • Value-added network services
  • Other services
  • Chart: Wired Telecommunications Network Operation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses
  • Government
  • Chart: Major Market Segmentation for the Wired Telecommunications Network Operation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Wired Telecommunications Network Operation

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wired Telecommunications Network Operation Industry

  • Industry Globalization
    Chorus Limited, Vodafone New Zealand Limited,
  • Table: Chorus Limited - financial performance
  • Table: Vodafone New Zealand Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wired Telecommunications Network Operation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wired Telecommunications Network Operation Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Asymmetric Digital Subscriber Line (Adsl)
  • A line with different downstream and upstream data speeds.
  • Gigabits Per Second (Mbps)
  • A measure of data transfer speed. One gigabit is equal to one billion bits.
  • Voice Over Internet Protocol (Voip)
  • A process of communicating through speech via the internet rather than through a telephone call.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wired Telecommunications Network Operation in New Zealand market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Wired Telecommunications Network Operation in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wired Telecommunications Network Operation in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wired Telecommunications Network Operation in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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