FutureFive NZ - 2degrees' $2.24 billion gift

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2degrees' $2.24 billion gift

The breaking of the Telecom-Vodafone duopoly by newcomer 2degrees has contributed $2.2 billion to the New Zealand economy, and will contribute a total of $10.1 billion by 2021, according to a report by Venture Consulting.

Commissioned by 2degrees, the report breaks the company’s contribution into three categories: direct investment via network build costs, wages, and commissions to partners; indirect investment via support of New Zealand businesses; and a ‘competition dividend’, meaning consumer savings from lower mobile prices.

Eric Hertz, 2degrees chief executive, says the report is the first time 2degrees’ impact on the market has been quantified.

"Mobile competition is off to a great start,” Hertz says, "but is still developing.

"We are investing in network and retail stores along with services to new markets, so we intend to do our part and continue to take the game to our competitors.

"Our founding shareholder, Hautaki Trust, deserves special recognition for its perseverance in turning Maori spectrum into the late, third-entrant national mobile operator, serving a market that was so clearly ready for choice.”

Go here to read the full report.

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