2degrees narrows the gap – but which gap?
In this edition:
A closer look at the 2degrees challenge
Recent New Zealand mobile market data paints two distinct pictures of 2degrees’ relative performance.
Telcowatch, the quarterly device-based tracker from Datamine, says 2degrees is the standout performer. In its recent June quarter report, Telcowatch says 2degrees’ market share is up 4.4 percent year on year after four quarters of growth.
2degrees has gained ground on Spark. That company has seen its market share fall 4.2 percent to 31 percent. Telcowatch treats Spark and its Skinny brand as separate. Combined, the two account for 37 percent of the market just ahead of One NZ which has a 36 percent share.
While 2degrees remains the third player, it is closing the gap on Spark and One NZ.
The Commerce Commission's 2025 Telecommunications Monitoring Report, published two weeks ago and based on subscriber counts rather than active devices, sees something else.
It says One NZ, not 2degrees, is the one closing the gap on Spark, and describes 2degrees as a stable but still smaller player in the market. Its five-year chart puts 2degrees at 22 percent, up from 19 percent since 2020. That’s real growth but gradual compared with the accelerating growth reported in Telcowatch figures.
Why the numbers differ
Much of the difference comes down to methodology. The Commission folds Skinny into Spark's number and counts subscribers, not devices, so promotional Sims and secondary connections affect each measure differently.
Two years ago, in this newsletter's own follow-up on the 2degrees-Vocus merger, the picture was just as muddy. That used the Commerce Commission's Telecommunications Development Levy calculations, a broader measure across all of a telco's activities, not just mobile. By that measure, 2degrees had barely moved the dial, edging up from 12.7 percent to 12.8 percent.
Competition remains concentrated
Either way, the market stays tightly held and highly concentrated. The three network operators still control 96.8 percent of subscribers between them. Mobile virtual network operations remain relatively small in New Zealand.
Looked at through that lens, you might view a few market share points moving between 2degrees and Spark as reshuffling within the oligopoly.
It’s now 25 years since work started on what became 2degrees. Since its 2009 launch there has been a steady erosion of what was once a duopoly.
What has changed in recent times is ever more regulatory intervention. Two weeks ago the government moved to rebalance mobile spectrum, citing figures showing 2degrees holds just 16 percent of available spectrum against 33 percent for Spark and 34 percent for One NZ, a gap it says risks constraining smaller operators.
This tells a more complete story. 2degrees is challenging, but it still faces structural barriers to reach its full potential and in turn deliver the promise of a competitive mobile market.
For background:
Bill Bennett
One NZ gets international recognition for AI innovation
One NZ won a TM Forum Catalyst Award at Digital Transformation World in Copenhagen in June.
The prize-winning project, called The Butler Did It, was developed with Vodafone, Salesforce, AWS, Personal (Argentina), Aria and Virtusa. It was one of six winners chosen from 49 international teams involving more than 1,350 participants.
The project uses AI-powered digital 'Butlers' to help businesses optimise network performance, monitor security risks and resolve service issues proactively, going beyond basic connectivity.
One NZ's Neeharika Chowdhary, who accepted the award, said it showed 'New Zealand innovation can compete with the very best'.
Tuanz puts AI capability on election agenda
Tuanz’s latest election briefing calls on the next government to invest in domestic AI capability to keep New Zealand research internationally competitive.
The organisation wants state-backed AI services, alongside initiatives aimed at increasing public trust in the use of the technology.
The briefing paper says that while 88 percent of New Zealanders have knowingly interacted with AI-powered services in the last year, there is still a significant trust deficit. That shows up in the finding that 62 percent of New Zealanders would stop using a company if they had concerns about their AI use.
In other news....
- Mercury to close Now NZ broadband provider — NBR (paywall)
Customers will transfer to Mercury. - Profit down as Datacom faces tech sector uncertainty — NZ Herald
Market is cautious. - Changes are coming to Netflix — Spyglass
Streaming giant feeling the heat of YouTube competiton. - Opposition to Datagrid’s Makarewa AI data centre — The Guardian
Locals express concerns about noise, power and water.
Briefs
Steve Bush is the new CEO for Tait Systems New Zealand. Bush will take charge of developing the land mobile radio network Tait Systems is building for the new Public Safety Network.
Tuatahi First Fibre has appointed Richard Riley as chief executive. He has been acting chief executive since November 2025.
Act Party leader David Seymour told a business function that Parliament could prohibit the purchase, possession and supply of smartphones to under-16s. Instead, he says teenagers will only be able to use dumb-phones, which don't have access to social media apps.
Radio Spectrum Management is looking for feedback on its plans to make
the 3340-3460MHz frequency band available for potential use by regional fixed wireless broadband, private mobile networks and New Zealand-wide mobile networks.
An application filed with the US Federal Communications Commission reveals SpaceX plans a third generation constellation with 100,000 satellites in two very low Earth orbit shells.
This time last year Chorus reported a winter traffic surge
In July 2025 we reported Chorus network had moved a total of 30 petabytes of data during the previous month as users downloaded the recent Fortnite game software update.
That same month individual customers downloaded an average of 671 GB. This compares with 696 GB in May 2026, the most recently reported month.
The record month for downloads so far was January 2026 when the average was 722 GB.
Ten years ago on 15 July 2016 this site reported Chorus saying that 100 GB a month was the new average download and that “The national monthly household data consumption average has grown by almost 100 percent since the beginning of 2015 and it shows no signs of slowing.”
Five years ago we reported on rising connection speeds. At the time Chorus’ figures showed the average connection speed on the fibre network hit 202 Mbps at the end of June. Today standard plans have a 500 Mbps connection speed and more than 80 percent of customers use at least this plan.
The Download Weekly is a New Zealand telecommunications industry newsletter written by Bill Bennett. You are welcome to pass it on to your friends and colleagues. While the newsletter is free, reader support helps enormously. If you are reading this for work, donations are tax-free. A banner at the top of the page will take you to the support site.
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Bill Bennett has covered New Zealand telecommunications for nearly 40 years and was named Tuanz Journalist of the Year 2025.
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