New Zealand's mobile market is to gain a long-awaited third operator with the launch of NZ Communications' new network in August. Rebranded 2degrees, the company aims to provide 2G GSM and 3G HSPA technology to 97 percent of New Zealanders and will cut prices to challenge the sector's two dominant players, Vodafone and Telecom New Zealand. "Most markets in the world have at least three network operators and quite a number have more," said 2degrees CEO Mike Reynolds in a statement. "There is no other comparable country that has to suffer such poor value in the mobile market and that can be attributed to a lack of a vibrant competitive environment... Kiwis are tired of being locked into lengthy contracts and being stung with high prices to call friends on competing networks. They want to take back control of how much they spend and who they call."
The launch of the new network was initially expected last October but reportedly suffered delays due to problems with striking co-location deals with its rivals for the installation of network equipment. However, today's statement says the operator "has committed over NZD250 million (US$151 million) and is building a 2G and 3G network that is HSPA+ capable." China's Huawei is the network equipment supplier. The operator has also signed a national roaming agreement with Vodafone for areas where it does not have its own mobile network coverage. New Zealand's mobile market is a duopoly, with market-leader Vodafone controlling 52 percent market share. Total mobile subscriber count in the country stands at 4.8 million, according to Wireless Intelligence. Although 3G WCDMA technology only accounts for 25 percent of connections, recent aggressive expansion plans from Telecom NZ and Vodafone (as well as the new launch of 2degrees) look set to make the country a hotbed of future mobile broadband activity.
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