As fibre and 5G investment cycles peak, satellite is reshaping the competitive landscape in rural areas – but is yet to close the digital divide entirely
Regulation has promoted investment, innovation and competition in “world-class” telecoms infrastructure
On 29 June 2026, the Commerce Commission (ComCom) published its latest annual Telecommunications Monitoring Report, providing an assessment of competition and the performance and development of the telecoms market in New Zealand. According to Tristan Gilbertson (Telecommunications Commissioner, ComCom), the report highlights the strengths of the sector and the technological changes reshaping it. He stated that Kiwi consumers benefit from world-class fibre and mobile networks, with prices that generally compare well internationally, adding that these outcomes reflect the role of regulation in supporting investment, innovation and competition over many years. Across the wider market, the report outlines the growing role of smaller providers in driving competition, particularly energy retailers bundling broadband and mobile services with energy plans, and MVNOs continuing to expand their presence in the mobile market.
Starlink accounts for over a quarter of all rural broadband subscriptions
The growing impact of alternative technologies was the most notable development in this year's report, with satellite reshaping rural connectivity in much the same way as fibre has transformed broadband in urban New Zealand. Starlink, through its Low Earth Orbit (LEO) satellite service, is now the largest rural broadband provider, accounting for 27% of connections. In a blog post that followed the report, Gilbertson stated that LEO satellite has introduced a fundamentally different way of solving the rural connectivity challenge, with consumers responding to the choices available to them – especially to transition away from copper services. Satellite’s emergence has also triggered a competitive response from telecoms operators, forcing them to work harder to win and retain customers by sharpening prices, reducing data constraints and increasing investment in fibre, 4G and 5G upgrades. As the market evolves at pace, effective monitoring, enforcement and regulation (e.g. spectrum policy) become particularly important to ensure a level playing field between competing technologies.
Investment will need to continue in order to enhance network resilience
ComCom states that the balance it has sought to strike between promoting competition and applying regulation has enabled sustained investment in fixed and mobile infrastructure over the past decade. It claims that this approach has materially improved connectivity across much of the country and accelerated the shift away from legacy technologies, such as copper. While maturing fibre and 5G rollout programmes meant that total telecoms capex declined by around 9% in 2025, ComCom states that continued investment will still be needed to maintain service quality and reliability, particularly in light of recent extreme weather events. Meanwhile, revenue and profitability growth during the year appears to reflect a tight control of expenses rather than significant overall market growth.
Consumer satisfaction is lower than ComCom would want, but is not driving switching between operators
Despite the telecoms market in New Zealand remaining highly concentrated, ComCom considers that it has delivered strong outcomes for consumers, enabling them to enjoy higher network performance and better “on-the-ground” support. However, customer satisfaction (of 69%) remains below the regulator’s benchmark level (80%) and has deteriorated among some larger operators. This dissatisfaction is not translating into significantly higher switching, which remains lower than in the electricity sector and in comparable overseas markets, suggesting that there are still frictions preventing consumers from fully exercising choice. Differences in the experience of urban and rural consumers are also present. Those in rural areas have relatively lower levels of mobile coverage and pay around NZ$13 (£5.60) more per month for fixed broadband services than those in urban areas.
