Starlink now holds 27% of rural broadband connections in New Zealand, according to the Commerce Commission's latest Annual Telecommunications Monitoring Report.
The satellite provider has experienced strong growth and is moving toward becoming the largest broadband provider as customers shift away from legacy copper connections. Satellite services are changing the economics of rural broadband, with rural consumers now able to access speeds comparable to urban areas.
Telecommunications Commissioner Tristan Gilbertson said the sector is transitioning from network build-out to technology-driven competition. The Commission expects more satellite providers to enter the market, while direct-to-cell services are expanding mobile coverage.
Despite increased competition, customer satisfaction sits at around 69%, below the Commission's benchmark. Gilbertson said low switching rates suggest barriers to changing providers remain, even as dissatisfaction persists.
"The future shape of the market is still evolving, but consumers should be the beneficiaries of the increased investment, innovation and competition that these technologies are bringing," Gilbertson said.