2degrees

Two Degrees New Zealand Limited, trading as 2degrees, is a New Zealand full service  telecommunications provider. It's the third-largest wireless carrier in New Zealand, with 1.6 million subscribers as of May 2021. Since launching its  mobile network, 2degrees broke up the New Zealand mobile duopoly halving the price of Prepay overnight. 2degrees offers services across mobile, broadband, business and power.

It has spent over NZ$550 million building its mobile network, which covers Ashburton, Auckland, Christchurch, Dunedin, Hamilton, Hastings, Invercargill, Levin, Napier, Nelson, New Plymouth, Oamaru, Palmerston North, Queenstown, Rotorua, Taupō, Tauranga, Timaru, Wanganui, Wellington and Whangārei. In areas without 2degrees coverage, handsets connect to One NZ's UMTS and LTE network using MoRAN, using 2degrees' spectrum.

2degrees is owned by 2degrees (NZ) Holdings Pty Limited, with Macquarie Asset Management and Aware Super as its ultimate shareholders. Until 24 May 2022, it was majority owned by US-based  Trilogy International Partners.

In March 2015, 2degrees announced it had acquired Snap,
a broadband-based ISP, and from 28 July, began offering broadband and home-phone services in addition to existing mobile services.

Naming

The name of the company is a play on the concept of six degrees of separation, the "two degrees" being a reference to the relatively small population of New Zealand and the idea of the closeness of New Zealand communities.

Network

2degrees was formerly known as NZ Communications and previously as Econet Wireless. Planning began in 2000, but details were not revealed until 11 May 2009 and pricing was announced a day before launch. 2degrees accepted its first customers on 4 August 2009 for 2G calling and SMS only. Nearly a year later, on 3 August 2010, 3G was turned on and new data plans announced for use in areas where 2degrees has its cell towers. 2degrees launched its 4G network in 2014, and later launched its 5G network on the 28th February 2022.

2degrees' network works with UMTS-900, UMTS-2100, LTE Band 1, 3, 8 and 28 and 5G NR Band n78 mobiles.

2degrees has plans to launch a direct-to-standard-phone (sat2phone) network in 2026 using Lynk Global satellites for SMS and AST SpaceMobile satellites for 4G and 5G data services.

Coverage

2degrees had native GSM (900M/1800) with EDGE data in the main centres using Huawei kit at launch and had a roaming agreement with One NZ (then Vodafone) (GSM with GPRS only), so had nationwide coverage on launch day.
2degrees launched 3G (UMTS 900/2100) services in August 2010 in all coverage areas, including One NZ roaming locations. 2degrees launched 4G LTE (B3 1800) services in Auckland in June 2014 and expanded to its own network over the next two years. 2degrees progressively extended its own network covering most of New Zealand's population.
In 2020, 2degrees ended its national roaming agreement with One NZ. It now has an infrastructure sharing agreement with One NZ on 200 remote towers (using Multi Operator Radio Access Network (MoRAN) technology).
5G services went live in Auckland, Wellington, and Christchurch in March 2022. With the launch of 5G, 2degrees is progressively replacing its Huawei equipment with new Ericsson (3G,4G and 5G) kit.
2G services were shut down in March 2018.

2degrees also operated a Wi-Fi network in Wellington city. The network was on a trial with some selected members of the public (about 20,000 people).

4G LTE services are on (band 3) 1800 MHz. In addition, (band 28) 700 MHz is used for "long-range" 4G services and Rural Communications Group towers.

2degrees shut down their 2G network on 15 March 2018.

In December 2021, 5G towers have been registered in Auckland, Wellington and Christchurch using the N78/3500MHZ band. Over the next 3 years, 2degrees expanded their 5G network to cover many main centers.

Network operator partnerships

Rural Broadband Initiative 2 (RBI 2) and Mobile Black Spots Fund (MBSF) funding from the New Zealand Government resulted in a collaboration between 2degrees, One NZ, Spark NZ and Crown
Infrastructure Partners, known as the Rural Connectivity Group (RCG), with shared mobile coverage and wireless broadband using Multi Operator Radio Access Network (MoRAN) technology.

Standards and technologies

The company provides mobile services on its own cellular network. With support for 3G (UMTS 900 MHz and 2100 MHz) and 4G (LTE 700 MHz, 900 MHz and 1800 MHz). Wi-Fi Calling is also supported (handset dependent).

New features

2degrees has a few features not found on other New Zealand mobile service providers.
* The ability to get settings from the SIM menu

2degrees was the first Mobile Provider in New Zealand to offer Voice over WLAN/Wi-Fi calling.

MNC and dialing codes

2degrees' mobile network code is 530–24. The native STD prefix for the network is 022. New Zealand has mobile number portability, so customers switching from other networks may keep their existing mobile number.

Roaming

2degrees customers are able to roam on international networks in over 100 countries, including all three Australian networks (Telstra, Optus and Vodafone AU). Customers with handsets from some foreign networks, such as Three UK, can roam on 2degrees' network.

Expansion

In February 2011, 2degrees announced that they had obtained financing for a further $100 million network expansion.

2degrees has an ongoing network expansion in place, having recently secured financing to further expand its network and roll out a 5G network.

History

In 1999, the New Zealand Government auctioned off 3G spectrum radio spectrum licence. Rangiaho Everton claimed that the auction breached the Treaty of Waitangi because she believed radio spectrum is taonga and the government has no right to sell it. Everton lodged a claim with the Waitangi Tribunal, which was upheld. It was not until Labour won the 1999 election that Māori were allocated one of the four 2 GHz 3G spectrum licences at a "discounted price" - it was given, and they were paid $5 million to "develop" it. In February 2001, Simon "Tex" Edwards, a former banker, established NZ Communications Limited. Later in 2001, NZ Communications received further financial backing from Strive Masiyiwa's Econet Wireless, which Edwards also owns shares, and then a 30% stake from the Hautaki Trust, which is the trading arm of the pan-Maori trust Te Hauarahi Tika. In 2007, NZ Communications Ltd began building towers for New Zealand's third mobile network. Customers reported seeing "NZ-24" listed in their network settings in areas with towers.

In June 2008, Trilogy International Partners, which was established in 2005 by Strive Masiyiwa, John Stanton, Bradley Horwitz and others, purchased the 26% stake from Econet Wireless in NZ Communications Ltd.

In 2009, NZ Communications changed its name to 2degrees and began a roaming deal with Vodafone New Zealand. The deal allowed NZ Communications' customers to automatically roam onto Vodafone's 2G network. At the time the deal was announced, it was suggested the deal might also be expanded to include roaming on Vodafone's 3G network too, at NZ Communications' request. Also in 2009, Trilogy increased its stake from 26% to 52% while the Hautaki Trust stake was reduced from 20% to 13%, and Eric Hertz replaced Mike Reynolds as CEO in July.

In mid-2009, 2degrees was owned by Trilogy International Partners, a US venture capital firm specializing in mobile networks (58.66%), Communication Venture Partners, a London-based company that invests in telecommunications and related software businesses (27.13%), Te Huarahi Tika Trust (10.17%) and KLR Hong Kong (0.50%). In July 2009, General Enterprise Management Services, a Hong Kong-based private equity fund, sold its 25.76 percent shares to Trilogy.

In 2012 when Tex Edwards stepped down as strategist, Trilogy owned a 58% stake in 2degrees, the Netherlands' Tesbrit BV owned a 32%, and the Hautaki Trust owned a 10% stake.

On 30 March 2013, 2degrees CEO Eric Hertz and his wife Kathy were killed when their twin-engine Beechcraft Baron, which was flying from Auckland to Timaru, ditched in the sea near Raglan at about 12:30pm after reporting engine failure. The plane was found at the bottom of the sea off the coast of Kawhia, 56 metres underwater, on 2 April. In a statement, Hertz' family thanked New Zealanders for their support. Hertz was succeeded as CEO of 2degrees by chairman Stewart Sherriff and Bradley Horwitz became chairman.

In 2016, Tex Edwards sold his remaining stake in 2degrees.

In early 2017, Trilogy International Partners owned a 73.2% stake in 2degrees. Then, Canada's Trilogy International Partners sold its 63% stake to a new entity in which Trilogy International owns a 51% stake. Later, in mid-2017, Tesbrit BV was allowed to purchase up to a 49.9% stake in 2degrees.

In August 2018, CEO Stewart Sherriff announced his retirement from 2degrees. The Commerce Commission's Telecommunications Monitoring Report from December 2018, shows 2degrees mobile market share at 21%, with Vodafone at 41% and Spark at 32%. The remainder of the market is made up of MVNO operators, Skinny with 5% and the rest with 1%.

In 2019, 2degrees' chief financial officer Mark Aue became the company's chief executive. On 14 April 2020, the company announced that they were to cut the workforce by 10% (i.e. 120 staff), stop recruitment, and reduce spending on capital projects in response to declining turnover caused by the coronavirus pandemic.

The company is part of New Zealand Telecommunications Forum.

2degrees along with One New Zealand and Spark New Zealand plan to end their 2G and 3G mobile services by 31 December 2025.

Retail

2degrees has 56 retail stores, including fifteen throughout Auckland, two in Wellington, one in Paraparaumu, three in Hamilton, one in Tauranga, three in Christchurch and one in Dunedin. The company also runs several smaller kiosk stores, which tend to be located in shopping centres. They also offer their products at supermarkets, petrol stations and convenience stores.

Services

2degrees halved the prevalent pricing for prepay mobile in the New Zealand market, with voice calls costing 44 cents. SMS messages are charged at 9 cents. Customers will receive 300 to 500 free SMS messages per $30–$50 prepay top-up. Also, customers will receive a special rate of 22 cents for on-network and landline calls, as well as 2 cents per on-network SMS, provided they have topped up within the last 30 days.

Mobile Zone Data became available after 3G coverage was turned on. In regards to SIM swapping, it is worth noting that the customer must have a blank SIM card which may only be purchased from the following retailers: 2degrees Mobile (walk-in & online purchases), Harvey Norman, Noel Leeming, Warehouse Stationery and JB Hifi. 2degrees SIM cards purchased from stores such as supermarkets are not blank. 2degrees previously provided an online SIM swap option, however this was removed, and now SIM swaps must be completed at one of 2degrees' retail stores.

Phone numbers

2degrees auctioned 85 special numbers on New Zealand auction website TradeMe for charity, raising over $65,000. The highest selling number was 022 888 8888, likely due to the number eight being considered lucky in some Asian cultures. New customers can choose their own number, on the 2degrees website.

Marketing

2degrees has run commercials featuring Rhys Darby, a comedian known for making jokes and sketches about New Zealand life. They were filmed on location by Film Construction Ltd, a television commercial and digital content production house in Auckland.

Criticism and complaints

In May 2024, the Commerce Commission filed eight charges against 2degrees for misleading claims, after which, 2degrees removed the 90 day limit on free roaming to Australia.

That same month, 2degrees was revealed to be the "most complained-about" telco in 2023 by the Telecommunications Dispute Resolution service, with an average of 0.67 complaints per 10,000 connections and an average of 0.52 complaints per 10,000 connections for mobile in July-September 2023 and October-December 2023 respectively.

See also

* One NZ
* Telecommunications in New Zealand

References

External links

2degrees mobile

{{Coronavirus pandemic in New Zealand

Mobile phone companies of New Zealand
Mobile technology
Companies based in Auckland
New Zealand companies established in 2009
Internet service providers of New Zealand
Telecommunications companies established in 2009