2degrees revenue soars ahead of IPO, privacy breaches double

2degrees posts record $545M revenue as IPO looms

New Zealand's fourth largest telco, 2degrees, reported service revenue of $545 million for the 2020 financial year.

It's the highest ever figure for the company and a boost as it prepares to list on the New Zealand and Australian exchanges later this year.

Service revenue was up seven percent on the previous year. Underlying earnings from operations were up 6.5 percent at $180 million.

Roaming revenue missing in action

Chief executive Mark Aue noted this result came despite the company missing out on international roaming income. Roaming relies on tourists coming to New Zealand and 2degrees customers travelling overseas. None of this happened during the pandemic.

It's not all good news. 2degrees cut staff numbers by 10 percent during the year. The move affected around 120 people.

The year saw 2degrees increase the number of pay monthly subscribers by 3.9 percent. Broadband subscriber numbers were up 13 percent.

Corporate mobile customer numbers were up more than 20 percent in the year to 106,000.

Parent company Trilogy International, which is listed on the Toronto exchange, said it has begun preparations to list 2degrees later this year. It says any listing will be subject to market conditions.

ComCom maintains PSTN interconnect, number portability, co-location regulations

The Commerce Commission says for now it will keep regulating PSTN interconnection, number portability and mobile co-location. But regulation may not be necessary in the long term.

Telecommunications commissioner Tristan Gilbertson says: "After consulting with the sector, and interested parties, our view is that these services continue to play an important role in the market and should remain regulated for now."

All three services have a role to play in maintaining market competition. They also make life easier for telecommunications users.

The decision is part of a five yearly review of regulations that the Commerce Commission must now carry out under the Telecommunications Act.

Privacy breaches double under new legislation

Breach notifications were up 97 percent in the four months after the new Privacy Act became law. More than half of the breaches reported to the Office of the Privacy Commissioner involve emotional harm. Roughly one-third resulted in the risk of identity theft of financial loss.

New Zealand and UK sign privacy cooperation deal

New Zealand's Privacy Commissioner John Edwards has signed a memorandum of understanding with the UK’s Information Commissioner. The agreement will see the two offices share information and intelligence, but does not include any sharing of personal information.

TVNZ eyes premium streaming service launch

Media reports say TVNZ aims to launch a paid, ad-free on demand streaming television service. It could start later this year. TVNZ has hinted at similar plans for years.

TVNZ CEO Kevin Kenrick confirmed the broadcaster is planning "an ad-free paid subscription service" as part of a major reimagining of its TVNZ OnDemand platform. The new version could launch as soon as this year, though subscriptions won't be turned on until the company judge the service has reached sufficient scale.

Kenrick says the move toward multiple revenue streams is necessary because "it's going to be pretty hard to do it solely on any one" funding model. The broadcaster has been contemplating such an offering since at least 2018 but hadn't publicly committed until now.

The strategy follows the UK's Channel 4, which launched All4+ at £3.99 - significantly cheaper than Netflix's £5.99 starting price. TVNZ is now reaching over a million viewers a week with OnDemand, giving it the scale needed to make subscriptions viable.

Kenrick confirmed that "the government is aware of the strategy" and that TVNZ has been "very open with officials and with the minister about where we see the future going." Broadcasting Minister Kris Faafoi would only say that "TVNZ has presented a range of options for the digital future of its business."

The paid service represents TVNZ's bet on a post-linear TV future as it competes with international streaming giants like Netflix and Disney+.

Ardern and Macron to lead anti-extremism tech summit

Prime Minster Jacinda Ardern and French President Emmanuel Macron are the co-chairs of a Christchurch Call leaders' summit that will take place next week.

The Christchurch Call started after the 2019 mosque shootings. It is a virtual summit that will brings together governments, technology companies and others in a bid to eliminate terrorist and other extreme or violent online material.

Jacinda Ardern says this year's summit will examine how algorithmic processes have the potential to cause harm or to radicalise people.