2degrees grabs bigger share of mobile phone market

Feb. 9 (BusinessDesk) – Two Degrees Mobile, the newest entrant in the mobile phone market, has grabbed more customers from bigger rivals Telecom and Vodafone New Zealand and boosted its market share.

The Auckland-based company has 875,656 customers after two-and-a-half-years in the market, almost 300,000 more than when it last announced its customer numbers last year. That gives it about 16 percent of the mobile phone market, which is led by Vodafone with 2.434 million customers and Telecom’s 2.079 million clients.

2degrees spend last year “developing new network and products, opening new stores and focusing on our New Zealand based customer service, so it’s extremely rewarding to see that effort deliver results,” chief executive Eric Hertz said in a statement. “Individual consumers and businesses have joined us in the past year because they value service, easy-to-understand pricing and coverage to 97% of New Zealand.”

The mobile operator’s shareholders, Trilogy International, Tesbrit and Hautaki Trust, have been regularly injecting funds as the company works towards profitability, and put in a further US$3.6 million in December. 2degrees’ owners pumped in US$66.1 million into the company last year.

Last year, Hertz said the company will spend $100 million boosting the size and capacity of its network, and roll out 30 stores nationwide. It has lifted its staff numbers to more than 545 over the past year, with most of the growth in sales and customer service.

Almost a third of 2degrees have used mobile phone number portability, where they took their existing phone number with them to the new network.

In June, 2degrees reported a loss of $76.8 million in the 12 months ended Dec. 31 as it continues to build its share in the market, posting gross profit of $38.2 million on sales of $107.6 million.

2degrees grew out of a controversial government decision 10 years ago to give Maori the right to buy a third generation radio spectrum frequency at a discounted price. The remaining life of the spectrum management rights is about nine years.

(BusinessDesk)

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