10th Birthday

 

The 2degrees effect: 10 years of the telco that transformed Kiwi communication

 

This week marks 10 years since 2degrees launched in New Zealand, transforming the telco market, breaking a duopoly and driving prices down for consumers.

In figures released today, new CEO Mark Aue says the wider economic impacts of 2degrees have generated significant benefits to the New Zealand economy.

“Having a third player in the telecommunications market over the past 10 years is worth $13bn* to the New Zealand economy, when you consider our direct investment, indirect investment (like the suppliers and vendors we use) and the value of competition to New Zealanders. That’s estimated to grow to $33bn by 2028*.

“Ten years ago, New Zealand was one of the few OECD countries with just two mobile networks, competition was restricted, prices were high, customer service was poor, and you had to be rich to talk on the phone. New Zealand mobile prices were 37% higher than the OECD average. That’s until 2degrees showed up and took up the Fight for Fair on behalf of all New Zealanders.

“The arrival of 2degrees saw prices halve overnight. Calls went from an average of 89 cents per minute to 44 cents, while text messaging dropped from 44 cents each to 22cents. Even if you weren’t a 2degrees customers you were better off because of us,” said Mr Aue.

Since then, 2degrees has invested more than $950m into its own mobile network and acquired SNAP - allowing the company to become a truly full-service telco to consumers, with broadband and fixed services. The ongoing growth in the business market, with increasing customer numbers in SME, and corporate and government sector demonstrates the credibility of 2degrees as a full-service provider.

As it looks ahead to the next 10 years, Aue says 2degrees is committed to finding new ways to improve mobile and broadband for customers, serve the business market and keep challenging its competitors.

“We led the way in innovation and delivered a range of ‘firsts’ for New Zealand – from sharing plans and carryover data in the early days, to New Zealand’s first unlimited mobile data plan. And we’ve had a real focus on the customer experience, which is led by our wonderful care teams in Christchurch and Auckland,” said Aue.

Just one month into his tenure as CEO, Mr Aue says Kiwis can expect to see an ongoing commitment to fighting for fair from 2degrees.

“So far this year, we’ve frozen broadband prices when the others have increased theirs, partnered with Amazon Prime Video to provide leading content, launched a discounted plan called Kiwi Heroes for first responders, teachers, nurses and the military, and launched Unlimited Mobile Pool Plans. 10 years of great success and we’re only just getting started.”

As 2degrees celebrates its 10th Birthday, it is sharing customer insights which provide a glimpse into communication around the country.

  • Auckland customers use the most minutes, with users talking on average for 201 minutes each month.
  • Hawke’s Bay locals text the most, with the average customer sending 97 text messages per month.
  • Gisborne customers use more data than any other region, averaging 3.9GB per user each month.
  • The most text messages sent by a 2degrees customer over a 12-month period was 278,604.
  • The most data used over a 12-month period by one customer reached 107,854 GB.

Ends

 *Venture Consulting: Economic Study of the Benefits of Three-Player Network Competition in the New Zealand Mobile Market – July 2019

For more information, please contact:

Katherine Cornish / 021 947 835  Katherine.Cornish@2degrees.nz