New Zealand Fast Facts*
Population: 4.5 million
Languages: English, Maori, New Zealand Sign Language
Area: 268,838 square kilometers
GDP per capita (PPP): $36,100
Wireless market penetration: 136.6%†
Wireless operators: 3
Until late in 2009, New Zealand was home to a duopoly of wireless providers, which had created a noncompetitive environment. The arrival of 2degrees has shaken up the marketplace. When it launched service that same year, 2degrees cut in half the standard prices of prepaid voice calls and text messages, attracting over 200,000 customers in the first six months. Today, 2degrees has more than a million customers—23 percent of the mobile device market—with service revenues continuing to outpace subscriber growth. The introduction of 3G, 4G and postpaid services, coupled with an expanded distribution footprint, has enabled 2degrees to move up the market value chain and is expected to drive future revenues.
In April 2015, 2degrees acquired Snap, Ltd., a local fixed-broadband service provider and launched commercially in May 2015.
Learn more about 2degrees at www.2degreesmobile.co.nz
In June 2008, Trilogy acquired 26 percent of a greenfield mobile wireless operator in New Zealand, then called New Zealand Communications Limited, renaming it 2degrees. In July 2009, Trilogy announced its intention to increase its stake in the venture to 52 percent. 2degrees is licensed for the provision of nationwide 2G, 3G and 4G wireless communications; it launched commercial services on its GSM network in August 2009. Trilogy now owns 62.5 percent of 2degrees; the company’s other shareholders include the Hautaki Trust, which represents New Zealand’s Māori population.
- Voice and data service, including services delivered via SMS-based platform, over a 3G/4G network
- Wireless and fixed broadband services
- Prepaid and prepaid payment options
- Touch2Pay, the first commercial mobile payment service
- The only carrier in New Zealand to offer Carryover Minutes™
- International roaming in 150 countries worldwide
- ILD termination and origination
- Local and international electronic top-up service
New Zealand is a developed, prosperous country in which per capita income has risen for ten consecutive years. Prior to 2degrees’ entry, the New Zealand wireless communications market was a duopoly, with high prices, lack of product differentiation, and low subscriber usage. New Zealand had the sixth highest price per minute of 71 countries surveyed by the GSM Association in 2009; its prepaid prices ranked second highest of 30 OECD countries. High prices resulted in New Zealand having the second lowest “minutes of use” levels in the developed world and one of the lowest levels of smartphone penetration due to lack of innovation. In addition, total mobile service revenues as a proportion of total telecommunications industry service revenues in New Zealand were only 30 percent in 2008. Capitalizing on these opportunities, 2degrees launched as the third entrant in the New Zealand wireless market in August 2009 and has experienced rapid growth in its business.
*Source: The World Factbook, the Central Intelligence Agency
†Source: Estimate by Trilogy management