2degrees and One NZ proposing a joint venture to create a separate business to own and operate their radio access networks (RANCo), delivering better coverage, more capacity and a faster rollout of new mobile technology as it emerges.
2degrees and One NZ propose to establish a joint venture combining their radio access networks (RAN).
The proposed arrangement is designed to deliver better mobile connectivity for New Zealanders by enabling more efficient investment in coverage, capacity, resilience and new technologies.
Under the proposal, the companies would combine their respective radio access network (RAN) infrastructure – the antennas and base stations installed on cell towers – into a new jointly owned entity. The new company will own, manage and operate the shared RAN infrastructure on behalf of both telcos.
2degrees and One NZ will remain fully independent mobile network operators and continue to compete strongly across the New Zealand market. Each company will retain ownership and control of the parts of its mobile network and business that enable competition and differentiation, including spectrum management rights, core networks, fibre backhaul and satellite as well as digital platforms, support systems and product offerings.
The proposed arrangement would allow more efficient investment into expanding mobile coverage, increasing network capacity, accelerating the rollout of 5G and future technologies and strengthening network resilience.
2degrees CEO Mark Callander says network sharing is well established internationally and provides an opportunity to deliver better infrastructure outcomes for New Zealand.
“New Zealand can be a challenging country in which to build mobile networks. Sharing the infrastructure where it makes sense means we can deliver even more of the things that matter to customers: better coverage, greater capacity, stronger resilience and faster access to new technology.
“This is about 2degrees building an even better mobile network for New Zealand and further enabling strong competition across the industry. 2degrees and One NZ will remain independent businesses, competing hard for customers on price, products, service and innovation.”
Callander says the proposed arrangement would create greater opportunities to expand rural and regional coverage, increase capacity in urban areas and strengthen the resilience of New Zealand’s mobile infrastructure.
“Instead of duplicating investment where it adds little customer value, we can invest more effectively in extending and improving the network. Ultimately, that means better connectivity for more New Zealanders.”
The transaction is expected to complete in the first half of 2027, subject to customary conditions and regulatory approvals, including approvals from the New Zealand Commerce Commission and the Overseas Investment Office.
