New Zealand satellite communications
An essential part of the connectivity mix
Satellites reach further into rural and remote New Zealand than any other telecommunications technology. They are an affordable and simple option for homes and businesses that are beyond the fibre and fixed wireless footprint.
New Zealand was one of the earliest countries outside of North America to adopt satellites. In late 2024 it had the highest per-capita uptake of satellite internet in the OECD.
That early success is down to the nation’s unique physical and human geography. New Zealand is a large, sparsely populated country with a widely dispersed population. Reaching remote homes and businesses with traditional technologies is challenging and expensive.
Who uses satellite services
Farmers and rural businesses were the first to adopt satellites in New Zealand. For these users the technology is an operational necessity.
The same applies to commercial fishing operations and other maritime businesses. Temporary workplaces, such as construction sites, use satellite before fibre or other links are installed.
Around one in six remote and rural households use satellites for internet access. This is now the largest user segment.
Satellites play an important resilience and backup role for organisations that need a failover if terrestrial services are disrupted.
In the last year, many mobile users have begun using satellite services to extend the range of existing services. And the technology now plays a key role when trampers and others are lost or have emergencies in remote bush areas.
Low earth orbit and geostationary
Satellites fall into two distinct categories depending on how far they are from the Earth.
Low earth orbit satellites are nearest, about 500km to 2000km above the surface. Being closer means signals travel faster, there is less latency, performance is often similar to fixed wireless broadband.
Geostationary satellites are much further away, with orbits in the region of 35,000km. As the name suggests they stay in one place. This means they offer fixed and stable connections for one-way traffic such as web browsing or streaming TV, but the high latency means voice conversations have lag and real-time gamers have a poor experience.
Hardware requirements
Direct-to-mobile satellite services deliver signals from orbit to suitable phone handsets without the need for other equipment.
Other satellite services require a kit that includes some form of dish or antennae along with a router. Generally this is an extra cost on top of a monthly service subscription fee.
It’s usually best to install a dish on a roof or in a location that has a clear view of as much sky as possible. Installation is not hard, most customers are able to do this themselves.
Retail and wholesale
Satellite operators typically operate a direct to customer model when dealing with consumers. Anyone can buy a plan, maybe getting the necessary hardware delivered by courier, although some specialist technology stores also sell kits.
Business users can purchase satellite services the same way, but there’s also a wholesale market. One NZ acts as a partner for SpaceX’s Starlink to provide satellite texting to its mobile customers. All three main carriers resell business-focused satellite connections wrapped with additional services.
Demand management
Fibre broadband operators offer genuine unlimited plans without speed penalties. Satellite broadband, like fixed wireless, transmits using a limited resource: Bandwidth.
Managing this resource is essential. Satellite operators use techniques such as data caps; throttling, that is reducing speeds once a set data limit is exceeded and congestion pricing. Another approach is deprioritisation, customers on a lower price tier can see their speeds reduce during peak hours.
In many cases even deliberately degraded service levels give rural New Zealanders a better broadband experience than the services satellites replaced.
Further reading on satellite communications
• Gartner’s Khurram Shahzad on the satellite market — strategic perspective on how satellite services fit global telecoms.
- One NZ scores world first as Starlink direct-to-mobile launches — A New Zealand company continues to push satellite boundaries.
- 2degrees reveals sovereign satellite strategy —
- Network upgrades and satellite moves (satellite section) — Amazon Leo outlines enterprise plans, shows new terminal.