Internet subscribers

IBISWorld forecasts the number of internet subscriptions to grow by 2.2% in 2025-26, to 2.35 million connections. The number of internet subscribers is rising because of several key factors. Firstly, the shift towards remote work and online education, accelerated by the COVID-19 pandemic, has broadened the need for reliable internet access across various population segments. According to StatsNZ in September 2024, 898,700 people worked from home at least part of the week. Which is 209% higher than in 2018. Because the 2024 measure counts anyone who worked from home during the week, while the 2018 census counts only those who mainly worked from home, the comparison is directional rather than like-for-like, but it clearly shows working from home is far more prevalent in 2024 than in 2018. The other growth vector for internet subscriptions has been the growth of e-commerce, which has rendered internet access virtually essential for engaging in online shopping and leveraging digital services.

Furthermore, expanding fibre optic broadband infrastructure as part of New Zealand's ongoing efforts makes high-speed internet more accessible and appealing to potential new subscribers. This is complemented by a competitive environment among internet service providers (ISPs), potentially reducing prices, making internet access more affordable for a wider audience.

Another significant factor contributing to the increase in internet subscribers is the rising population, alongside an uptick in households and businesses. As the population grows, there is a natural increase in demand for internet services to meet the needs of new households and the digital requirements of new and expanding businesses. Overall, IBISWorld forecasts the total number of internet subscriptions to increase by a compound annual rate of 2.7% over the five years through 2025-26.