Ranco opponents warn of weaker mobile competition

One NZ-2degrees joint venture faces opposition

Five submissions opposing the proposed One NZ-2degrees Radio Access Network (RANCo) joint venture argue that combining active mobile radio infrastructure risks reversing hard-won telecommunications reforms and harming consumers.

The opponents range from overseas-based competition economists to local regulatory pioneers and industry advocacy groups. Across the five submitters, there are four areas of concern.

Fewer independent networks

First is the move from three independently operated radio access networks to two. Former Tuanz CEO Ernie Newman and former Tuanz chair Judy Speight was the chair each offer submissions that warn the joint venture will create a radio access network duopoly and that this is a step on a "downhill slippery slope" back to the days of high pricing and lack of choice before the market reforms of the 2000s.

Support for this concern comes from economic reports from consulting firms Compass Lexecon and HoustonKemp (both commissioned by law firm Chapman Tripp). These reports argue that network quality, which includes coverage, data speeds and reliability, is an important area where mobile network operators compete.

They argue that removing competition between the operators’ radio networks would reduce their ability to differentiate their services on quality.

Cost savings and pricing risks

The second area of concern is reduced incentives to invest and innovate.

Compass Lexecon notes any Ranco investment would only offer the prospect of winning customers from Spark. The consulting firm says this weakens incentives compared to a three-network market where each operator invests to win subscribers from two rivals.

Newman and Speight argue that independent networks encourage operators to invest in new technologies and expand rural coverage. Under a single joint upgrade path, innovation may slow to match the least willing to invest.

MVNOs may struggle to compete

A third area of concern is that the joint venture risks raising costs and enabling co-ordination between the two network operators.

HoustonKemp and Compass Lexecon say the anticipated efficiencies from consolidating equipment are largely fixed-cost savings, these are more likely to reward shareholders than reduce consumer bills.

A more technical fear is that if Ranco charges its owners on a usage basis, fixed network costs become variable costs. This creates a common wholesale price floor and increases market transparency, making price coordination between operators far easier to establish and sustain.

Ispanz, which represents smaller players argues that relying on MVNOs to maintain market competition is "fatuous".

New Zealand’s MVNO segment is unregulated and accounts for around three percent of connections. This compares with around 20 percent across the OECD. Without open access mandates, Ispanz says MVNOs lack the scale to constrain pricing.

Shared infrastructure raises resilience concerns

The fourth concern is that consolidating radio networks increases systemic risk. In the event of network failures or severe weather, shared infrastructure leaves consumers with fewer backup options for critical digital services.

Monopoly Watch backs Ranco proposal

Monopoly Watch NZ (led by 2degrees founder Tex Edwards) stands alone as the sole third-party supporter of the venture.

The opponents argue that sharing active infrastructure removes crucial quality differentiation and weakens incentives to invest in 5G, 6G and rural coverage. In contrast, Monopoly Watch believes the cost of continually upgrading radio equipment is a major competitive disadvantage for smaller operators.

From their perspective, the current market is an uneven "two-and-a-half operator" system where 2degrees has paid zero dividends over 15 years while incumbents extracted billions in profits.

Monopoly Watch argues that rather than stifling competition, Ranco reduces the capital 2degrees needs to invest in radio infrastructure.

Opponents fear weaker competition. Monopoly Watch believes lower infrastructure costs would allow 2degrees to compete more effectively. Monopoly Watch argues that the Commission should approve the deal despite the competition concerns, provided One NZ and 2degrees retain strict independence over their spectrum, core networks and retail strategies.

TDL figures show shifts beneath a stable market

As in recent years, the Commerce Commission draft telecommunications development levy (TDL) determination for 2025-26 shows a sector that is largely stable. Yet beneath the headline figures, there are signs of where change may come from with a doubling of SpaceX’s contribution.

New Zealand’s telecommunications market structure remains extremely stable. Last year, in the 2024-25 TDL draft allocation, the top four companies held 81.6 percent of qualified revenue ($4.03bn of $4.94bn). These companies are Spark, One NZ, Chorus and 2degrees.

This year's 81.5 percent shows that despite structural shifts, new market entrants and satellite expansion, the Big Four still hold virtually the same dominant slice (82 percent) of revenue. For the 2023-2024 draft their share was 84 percent.

The major providers hold their positions

While Spark remains number one, its lead over One NZ has narrowed slightly compared with previous years. Spark continued its long-term market-share erosion relative to the market. The company has a 26 percent share of qualifying revenue.

The Commerce Commission’s continuing review of Digital Island Ltd—which was divested from Spark—could yet change the levy allocations. If Digital Island is officially deemed a standalone, it slightly dilutes Spark’s reported qualified revenue base.

2degrees remains in fourth position with 14 percent of qualified revenue ($1.75 million levy payable). It is the third retail network operator behind Spark and One NZ, and is roughly half the size of the market leader in terms of revenue.

Accounting for 19 percent of the levy, Chorus is the highest-ranking wholesale service provider on the list. The next is Tuatahi on three percent, making it New Zealand’s fifth largest provider in the levy allocation.

SpaceX sits behind Tuatahi in sixth place. It accounts for three percent of the market and has doubled its share in the last two years. It generates more qualified revenue, than long-standing local players including Sky TV, Kordia and Vector.

In other news...

• Emergency services roll out new radio comms system — RNZ
  A look at Wellington Free Ambulance preparing for the changes.
• Data Vault to build 3MW North Shore facility - Reseller News
  Launch partners include Eon Fibre and Devoli.

Spark abandons plan to modernise phone boxes

Spark has laid the blame for its decision to close its public pay phones nationwide on Auckland Council. A statement from the company says it no longer plans to invest in modern alternatives. Spark had proposed a new generation of public phone booths that would offer free calling, WiFi and mobile phone charging. The service was to be funded by advertising.

Tuanz calls for bipartisan digital strategy

Speaking at the 2026 Tech Users Summit, Tuanz chief executive Craig Young called on political leaders to stop resetting the direction of national technology policy after every change of government.

He says national progress remains constrained by fragmented, short-term political cycles and piecemeal party policies.

Young says technology investment, digital transformation and workforce development require long-term cross-party alignment. "We can't afford to reset our national direction every three years while our global competitors move ahead. What's urgently needed is certainty, coordination and commitment across political lines to deliver a joined-up national strategy."

Tait Communications picks Zetron for dispatch consoles

Christchurch-based Tait Communications has integrated Zetron dispatch consoles into the systems of emergency services agencies using the Public Safety Network. Police and Fire and Emergency already use the consoles, while Hato Hone St John and Wellington Free Ambulance are set to follow.

Airbus, Broadtech sign emergency network deal

Broadtech and Airbus Defence and Space say they plan to work together to support New Zealand’s transition from legacy narrowband to broadband mission-critical services.

Re:Mobile collects one million phones

The Telecommunications Forum says more than a million phones have been recycled through its Re:Mobile service. Along the way it has kept 174 tonnes of waste out of landfills and raised close to $250,000 for Sustainable Coastlines.

TCF chief executive Paul Brislen says collections of old phones have accelerated in recent years. Collected phones are assessed for reuse, refurbishment or recycling. The service is free.

Old phones worth $478 on average

Data from One NZ says the average trade-in value of a phone is $478. The telco says the highest-value phone traded-in this year was a Samsung Galaxy Z Fold 8 Ultra 512GB, valued at $1,931. The Apple iPhone 13 128GB is the most common device, with 932 having been traded-in so far this year.

One NZ says the figures challenge the assumption that a phone needs to be relatively new to still be worth a substantial amount. The average device traded through One NZ this year is approximately 3.7 years old, while 69 percent of all devices traded have received a valuation above $250.

This time last year TDL data showed a stable market

Data collected to calculate the 2024-25 Telecommunications Development Levy showed a stable industry structure with the top four telcos accounting for around 82 percent of total qualified revenue.

Five years ago the sector faced slow recovery
An IDC report showed that the telecommunications sector growth was flat in the year to June 2021. The research company went on to forecast a long, slow recovery.

Ten years ago Vodafone launched its ill-fated FibreX
In October 2016 Vodafone said its FibreX service was about faster installs than the fibre services could offer. Eventually the launch of FibreX and its controversial name landed Vodafone in court.

At the time I wrote the following paragraph:

FibreX is the new name for the Vodafone HFC (hybrid-fibre coaxial) network that services parts of Wellington, the Kapiti Coast and Christchurch. In other words, it is not fibre and that will cause confusion.

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.