New Zealand’s mobile market is benefiting from continued investment in nationwide 5G infrastructure and growing demand for high-speed wireless connectivity. According to Ericsson’s latest Mobility Report, global 5G subscriptions reached 3.1 billion in the first quarter of 2026, while worldwide mobile data traffic increased 22 percent year over year, highlighting the rapid shift toward data-intensive applications that is also influencing operator investment strategies in New Zealand. The country’s three mobile network operators — One New Zealand, Spark New Zealand, and 2degrees —continue expanding 5G coverage and enhancing network capacity to support increasing consumer and enterprise demand.
The continued migration toward unlimited and higher-capacity mobile plans is supporting growth in data ARPU as consumers increasingly rely on smartphones for video streaming, cloud applications, online gaming, remote work, and artificial intelligence-powered services. Enterprises are also increasing mobile broadband adoption to support hybrid workforces, cloud connectivity, and digital transformation initiatives, creating additional opportunities for operators to expand data revenue.
The transition from traditional voice services to internet-based communications mirrors global telecom trends as consumers increasingly rely on messaging and calling applications integrated into digital ecosystems. While voice revenue continues to decline, operators are offsetting this trend by expanding digital services, mobile security offerings, cloud storage, entertainment bundles, and enterprise connectivity solutions that improve customer retention and increase average revenue per subscriber.
Operators continue investing in broader 5G coverage, spectrum utilization, and network modernization to improve capacity and user experience. Recent independent network studies from Opensignal have shown continued improvements in 5G availability and download speeds across New Zealand as operators deploy additional spectrum assets and upgrade transport infrastructure. Growing adoption of 5G smartphones is expected to further accelerate subscriber migration over the forecast period.
The enterprise IoT market is expanding beyond traditional asset tracking and connected devices. Utilities, agriculture, logistics, healthcare, manufacturing, and smart city projects are increasingly deploying cellular IoT solutions for remote monitoring, predictive maintenance, environmental sensing, fleet management, and intelligent infrastructure. As 5G capabilities mature, operators are expected to benefit from increasing demand for low-latency, highly reliable enterprise connectivity services.
Competition remains strong among One New Zealand, Spark New Zealand, and 2degrees, with all three operators investing in nationwide 5G expansion, customer experience improvements, enterprise digital services, and IoT platforms. Beyond consumer mobility, operators are increasingly targeting business customers through managed connectivity, cybersecurity services, cloud networking, and private wireless solutions that generate higher-value enterprise revenue streams.
AI and Enterprise Digital Transformation Support Telecom Growth
Artificial intelligence is emerging as a new driver of mobile network investment in New Zealand. Telecom operators are increasingly adopting AI-powered network optimization, predictive maintenance, automated customer service, and intelligent traffic management to improve operational efficiency and customer experience. At the same time, growing enterprise adoption of AI applications, cloud computing, and edge services is increasing demand for resilient high-capacity mobile broadband and IoT connectivity across multiple industries.
Outlook
New Zealand’s mobile services market is expected to generate $2.2 billion in revenue by 2030, growing from $1.9 billion in 2025 at a 3.3 percent CAGR, according to GlobalData. Mobile data revenue is forecast to expand at a 6 percent CAGR, while average monthly mobile data usage will increase from 8.71 GB to 14.68 GB per subscriber. Meanwhile, M2M and IoT subscriptions are projected to grow at a 3.5 percent CAGR, creating new enterprise revenue opportunities. Supported by expanding 5G coverage, rising AI adoption, enterprise digital transformation, and growing demand for connected services, New Zealand’s telecom operators are well positioned to diversify beyond traditional voice services and capitalize on the country’s increasingly data-driven digital economy.
FASNA SHABEER
