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The New Zealand business-to-business (B2B) mobile services market is forecast to reach $912 million by the 2026 financial year, rising at a compound annual growth rate of 1 percent from FY19 to FY26.
This is according to tech analysis firm Venture Insights Mobile, which said carriage services in particular, including mobile handheld, mobile broadband and device/hardware, are anticipated to pick up steam after a downturn due to the COVID-19 pandemic.
“B2B mobile revenue will grow to $786 million by FY26, driven by greater adoption of unlimited plans, and price rises due to inflationary pressure and premiums associated with new 5G plans,” said Claudio Castelli, head of research at Venture Insights.
In addition, 5G adoption is also expected to be taken on by more B2B decision markers, with 62 percent saying they would consider upgrading to a 5G mobile plan during the 24-month period after the service is available.
“5G, combined with other technologies such as edge computing, is poised to help organizations across every industry to transform by enabling more automation, new services, new channels to market, and data-driven decision making,” Castelli said.
“The technology will also drive growth for telcos by accelerating customer migration to more profitable plans/contracts.”
Additionally, the internet of things (IoT) is forecast to grow, with 30 percent of companies predicted to increase their IoT spend over the next 12 months, as well as another 5 percent of organizations over the same period.
“Most of the opportunity is still in larger transformative projects in the enterprise segment, but the SMB [small- to medium-sized business] the market will grow faster (although from a much smaller base) as some IoT solutions scale up and become affordable to organizations with more limited budgets,” Castelli added.
Earlier this month, Venture Insights also claimed the New Zealand retail telco market is to return to growth expecting to reach $5.37 billion in 2026.
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