Mobile internet connections

IBISWorld forecasts that mobile internet connections will grow by 2.0% in 2025-26, to 6.45 million. This growth is attributable to rises in both mobile telecommunications density and population. The continued rollout of the 5G network is set to encourage consumers to upgrade or expand their mobile internet capabilities, although growth from early adoption is expected to ease. In May 2023, it was announced that major communications network operators had signed contracts with the New Zealand government to accelerate the 5G rollout to rural areas and small towns. These operators include 2Degrees, One New Zealand and Spark. Similarly, in early 2025, Ericsson and One New Zealand launched a five-year partnership to deploy advanced 5G capabilities. The upcoming 3G network shutdown, with Spark closing its 3G network on March 31, 2026 and One NZ and 2degrees on December 31, 2025, is encouraging device upgrades and supporting connection growth as users transition to 4G and 5G-compatible handsets.

New Zealand's introduction of 3G technology enabled internet connectivity for mobile devices, but it was quickly eclipsed by 4G, which provided much faster download speeds. According to the Commerce Commission (Te Komihana Tauhokohoko), mobile data usage grew at a compound annual growth rate of 39% from 2011 to December 2019, with an average of 2.69 GB downloaded per connection each month. 3G network shutdowns from major network providers are underway, with One New Zealand and 2degrees targeting December 31, 2025, and Spark shutting down its 3G network on March 31, 2026, demonstrating the fast technological progression of the industry.

The number of mobile internet connections has grown overall in the past five years. The pandemic limited international arrivals with border closures, which subsequently hurt household numbers, resulting in a low base year in 2020-21. However, as New Zealand reopened its borders, mobile internet connections have rebounded strongly. Government-led programmes, like the Mobile Black Spot Fund, have further aided the growth over the period, bolstering the number of mobile network connections in state highways, underserved rural areas and key tourist destinations. Government funding through the 2022 New Zealand Budget allocated $60 million for rural connectivity improvements, with $43 million specifically targeting network capacity and speed enhancements in regions like the Far North, Gisborne, Manawatu-Whanganui, Taranaki, Southland and Waikato. Overall, IBISWorld forecasts the number of mobile internet connections to grow at a compound annual rate of 4.0% over the five years through 2025-26.