Which are the top four telecom companies in New Zealand?  


  • NZ boasts an advanced telecom sector, with a full-fibre wholesale broadband network across the nation.
  • Many telecom operators are providing a wide range of products and services in the Pacific nation.
  • With a market share of about 40%, Spark New Zealand leads the country’s telecom sector.

The telecommunications sector of a country lays the foundation of a strong and robust economic environment. It facilitates not only societal and business communications but is also instrumental in providing vital infrastructure for the country's security and safety.

Source: Copyright © 2021 Kalkine Media

A look into NZ’s telecom sector

New Zealand boasts a stable and advanced telecom sector. Underpinned by strong fundamentals, the telecom sector provides nationwide coverage and offers the latest technology to both its domestic as well as commercial customers.

Source: Copyright © 2021 Kalkine Media

As per reports, the total investment in NZ’s telecommunications sector for the year 2020 clocked about NZ$1.6 billion.

Interesting Read: Lens On NZ’s Telecom Sector And Future Ahead

Moreover, both mobile and broadband subscriptions are expected to witness continuous growth in the period from 2020-2025. Household penetration, too, would climb during the said duration.

In 2020, the total revenue generated from the country’s retail telecommunications market was close to NZ$5.1 billion, with increased usage of the monthly mobile data and fixed broadband as compared to pcp.

Who is NZ's market leader in the telecom segment?

Among various companies operating in the telecom space, Spark New Zealand Limited (NZX:SPK) is country's largest telecom provider, with a market share of 40% in 2020. Its operating revenue from the mobile segment stood at NZ$1.3 billion, followed by its broadband business, which is the next largest revenue-generating segment.

Amid the given scenario, let us skim through the top NZX telecom stocks.

Spark New Zealand Limited (NZX:SPK)

First on the list is Spark New Zealand Limited, which is the country’s largest telecommunications company. Earlier known as Telecom New Zealand, the Company rebranded itself as Spark New Zealand in August 2014. It provides an array of services, including broadband, cloud computing as well as entertainment media.

The Company has extended the term of Ana Wight, its Future Director, for another five months, till the end of December 2021.

On 7 July, at the time of writing, Spark New Zealand was up by 0.21% at NZ$4.830.

Must Read: Which 6 NZX-listed stocks are trending on Monday?

Chorus Limited (NZX:CNU)

Second on the list is Chorus Limited, which is another telecommunications infrastructure provider in the country. At present, the Company has more than 1.5 million broadband connections, and by December 2022, CNU expects that NZ’s fibre footprint will cover almost 90% of its entire population. Moreover, the Company has added over 54,000 rural premises to its fibre roll-out.

Next month, Chorus will publish its full-year result for the year ended 30 June 2021. Also, its Annual Shareholders’ Meeting will take place in October 2021.

The shares of Chorus dipped by 1.25% at NZ$6.340, at the time of writing, on 7 July.

Read: Would 10 NZX dividend-paying mid-cap stocks help beat pandemic blues?

Vital Limited (NZX:VTL)

Coming up next is Vital Limited, which has been providing a critical communications network across New Zealand for more than 20 years. Apart from providing fibre and ethernet, VTL also offers Digital Radio, Vital Cloud Network, and Peering Exchanges, etc.

As per the latest updates, the Company’s Sales & Marketing Head, Phil Henderson, has stepped down from his position and vacated his office in June 2021.

As of now, Andrew Miller, the Company's CEO, has taken charge of the sales team.

On 7 July, at the time of writing, Vital was trading flat at NZ$0.850.

Recommended Read: What are the top tech stocks in New Zealand?

Vector Limited (NZX:VCT)

Another telecom company on the list is Vector Limited. Apart from being a leading distributor of gas and electricity, the Company also owns and builds its own fibre network for businesses and firms who need fast, reliable, and secure data networks. At present, VCT boasts more than one million domestic and commercial customers across Australasia and the Pacific.

In its recently released operational performance for the nine months ended 31 March 2021, the Company’s electricity network was up 1.7% on March 2020. Despite being affected by the pandemic, VCT continues to offer essential services, including fibre across the country.

On 7 July, at the time of writing, the shares of Vector remained unchanged at NZ$4.050.

Can’t Miss Reading: Is NZ’s Telecom Sector All Set To Experience Growth? 5 Related Stocks- CNU, SPK, VTL, TLS, VCT



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