ComCom to test 2degrees-One NZ Ran joint venture

Regulator examines shared network deal

The Commerce Commission says it will only give clearance to the proposed radio access network joint venture between 2degrees and One NZ if it passes a series of tests showing it will not ‘substantially lessen competition’.

2degrees and One NZ plan to combine their existing radio access network (Ran) assets in a new joint venture, Ranco. The new company would own and operate the Ran assets currently owned separately by the two mobile operators.

In its statement of preliminary issues, the Commission identifies three broad potential competition effects: unilateral effects, coordinated effects and vertical or conglomerate effects.

Of these, the question of unilateral effects is given the most consideration. This asks whether the proposed Ranco would be in a position to raise prices or reduce competition on its own.

Ranco would replace two buyers of Ran equipment, installation, maintenance and related services. Potentially this would give it greater buying power than either 2degrees or One NZ has today.

The Commission specifically wants to know whether this could lead to lower supplier prices that in turn reduce suppliers’ incentives to invest, innovate or remain in the market.

Competition and pricing risks

A potentially more important question is whether removing direct competition between 2degrees and One NZ over Ran infrastructure gives Ranco an ability to increase the cost of mobile services, or reduce quality, service or innovation?

To better understand this, the Commission says it will test four things:

• how closely 2degrees and One NZ currently constrain each other;
• whether Spark and other competitors can replace that lost constraint;
• how readily competitors could enter or expand; and
• whether suppliers or customers have countervailing bargaining power.

Consideration of coordinated effects asks a separate but closely related question: does Ranco make coordination between mobile operators more likely, easier to sustain or more complete?

The Commission wants to know if the JV could change market conditions so that 2degrees or One NZ and the remaining competitors, particularly Spark, could coordinate their behaviour more easily, completely or sustainably.

2degrees and One NZ argue that Ran equipment is a fairly homogeneous input and isn’t visible to customers. The Commission is testing that argument, asking whether the joint venture could change the competitive dynamics sufficiently to increase the risk of coordination.

Then there are the vertical or conglomerate effects: could Ranco be used to disadvantage rivals?

Harder for Spark?

The practical question is whether Ranco could make it harder for Spark or a prospective fourth mobile network operator to obtain Ran-related services on competitive terms.

2degrees and One argue this shouldn’t happen because Spark already has an extensive Ran network and operators could deploy their own Ran infrastructure. They also say the joint venture isn’t bundling Ran with retail or wholesale products.

The Commission says it will test that argument. It says it will examine the degree of vertical integration in telecoms and whether Ranco acquires market power upstream or downstream.

There are two other important questions in the statement of preliminary issues. The first is market definition. This is not entirely clear at this stage. While this might sound like a semantic argument, this could become important because competition can look different if the relevant markets are defined more narrowly around particular products, services, locations or customers.

What happens if the deal fails?

The other fundamental issue the Commission needs to address is what happens if Ranco does not go ahead. 2degrees and One say the answer is simple: they would continue independently owning and operating their Ran assets.

This is something the Commission says it wants to test. Could, for example, 2degrees and One pursue alternative arrangements if the joint venture doesn’t proceed.

The question is not simply whether Ranco would lessen competition, but what would happen if it did not go ahead.

In the statement of preliminary issues, the Commission says it will canvas views from Ran suppliers about whether 2degrees and One NZ actually compete against each other when buying Ran equipment and services, including tendering, observed competitive reactions, price-quality negotiations and differences in commercial dealings.

It also plans to ask mobile operators, which, in effect means Spark, questions about whether RAN assets actually matter to retail and wholesale competition, and how operators differentiate themselves.

2degrees and One NZ’s argument depends on Ran being seen as a largely homogeneous, non-differentiating input. The Commission plans to test that by asking the people who buy, sell and operate the equipment.

Iridium shareholders approve Rocket Lab offer

Iridium shareholders overwhelmingly approved Rocket Lab's acquisition at a special meeting on September 24, 2026. About 99.6 percent of votes cast were in favour. This represents around 81 percent of Iridium's outstanding shares. The deal is expected to close by mid-2027, pending remaining regulatory approvals.

The terms of the deal value Iridium at $54 per share: $27.00 in cash plus Rocket Lab stock, subject to an exchange ratio collar.

Rocket Lab founder Sir Peter Beck says the deal is a step toward combining Iridium's network and spectrum with Rocket Lab's launch capabilities. Earlier steps included clearing the US antitrust review and completing a $1.94 billion equity programme to reduce bridging loan commitments.

In other news...

• Rocket Lab inks largest-ever Electron launch contract — NZ Herald (paywall)
  Will see 20 launches from Māhia peninsula.
• Australia’s inauthentic data centre backlash — The Guardian
  Issues are not of the same scale as the US.
• Low-cost phone business faces sharp decline — Counterpoint Research
  Higher component costs and increased customer expectations will drive the fall.
• Google to build orbiting AI data centres — Google blog
  Project Suncatcher rockets launched this week.

Telecommunications Emergency Management Plan nears completion

The Telecommunications Forum (TCF) says its Telecommunications Emergency Management Plan (Temp) is close to being finished. T he plan outlines how providers will collaborate before, during and after major emergencies. It aims to maintain critical communications when New Zealanders need them most. It has been developed jointly across the industry and is one of the TCF's major priorities this year.

Tuanz celebrates 40 years with return to break-even

The Technology Users Association of New Zealand posted a $128 net surplus on $542,598 revenue for the year to March 2026, returning the member organisation to break-even after a difficult year in 2025.

Membership grew to 174, with its Flint (future leaders) network reaching 897 members. The organisation also marked its 40th anniversary and says it is gearing up for election-year advocacy on AI, data use and digital inclusion.

Phone buyers should look beyond upfront price

One New Zealand's general manager of retail, Sam Bruce, says consumers should look beyond the sticker price when upgrading to a premium phone. These now regularly cost over $1,500.

Writing in a One NZ press release, Bruce suggests the more useful figure is the “effective upgrade cost”. That is the retail price minus the trade-in value minus the accumulated customer value, plus any financing costs. He says the traditional transactional relationship between telcos and customers has ended, and that loyalty, multiple connections and overseas use should count towards the cost of a new device.

This time last year cell towers were under attack

September 2025 saw further attacks on cell towers, a crime wave that gathered momentum in the early part of 2025. The sabotage appeared to focus on rural towers which was probably more about not getting caught than a targeted campaign to disrupt communications in areas with few alternative channels.

Five years ago Spark picked Nokia for its 5G rollout. Previously the telco had partnered with Huawei for its mobile networks, but when geopolitical considerations saw the Chinese telecommunications giant ruled out, Nokia won the majority of Spark’s 5G business.

Ten years ago Vodafone was pushing FibreX. At a time when people were waiting for UFB fibre connections, Vodafone plugged the gap promising quick installs for customers choosing its hybrid-fibre coaxial network. The controversial, and at the time new, FibreX brand name soon became a serious liability for the telco.

Bill Bennett has covered New Zealand telecommunications for nearly 40 years and was named Tuanz Journalist of the Year 2025.