2degrees

Naming

The name of the company refers to a local variation of the six degrees of separation concept.

Network

2degrees was formerly known as NZ Communications and previously as Econet Wireless. Planning began in 2000 but details were not revealed until 11 May 2009 and pricing was announced a day before launch. 2degrees accepted its first customers 4 August 2009 for 2G calling/txting only. A year later on 3 August 2010 3G was turned on and new data plans announced for use in areas where 2degrees has its cell towers. 2degrees launched its 4G network in 2014.

Coverage

2degrees initially did not have nationwide mobile coverage, but its own network has been extended to many towns, cities and rural areas. Users can seamlessly roam onto Vodafone's network in places where 2degrees has no cell towers however 2degrees now has coverage of 97.5% of places New Zealanders live and work.

Rural Broadband Initiative (RBI): 2degrees mobile phones can roam onto RBI cell sites. Theses rural cell sites are open access for all internet providers in New Zealand to buy wholesale packages and retail them to rural customers for household and business use. 2Degrees mobile phones automatically roam to these cell sites were available due to the roaming agreement with Vodafone. RBI has Vodafone installing 154 new rural cell towers and upgrading 265 towers to provide 3G and later 4G services, between 2011 and 2017.

2degrees towers have been deployed in these locations with 2G and 3G coverage (additionally 4G where noted):

2degrees also operated a Wi-fi network in Wellington city. The network was on a trial with some selected members of the public (about 20,000 people).

As of 2014, 4G LTE services are on (band 3) 1800 MHz. In addition (band 28) 700 MHz is on trial in central Auckland; 700 MHz ought to be able to penetrate large buildings.

Vodafone tower coverage

In some places where 2degrees has no telecommunications towers, users can roam on the Vodafone New Zealand network. While roaming on the Vodafone network, users cannot use broadband "zone data packs", but minutes, text messages and included "NZ carryover plan data", and "NZ data packs" can be used.

As of July 2015, the following towns have no 2degrees telecommunication towers (2degrees have purchased a licence to build a tower in towns in bold):

Standards and technologies

The company provides services on its own cellular network, which supports EDGE. The network has a few hundreds of cell sites installed, which initially cost approximately NZ$250 million to develop (up to 2009). Since 2009, 3G was rolled out to the main centres and then to regional cities and towns. Then in 2014 4G LTE to Auckland, Wellington, Christchurch, Hamilton and Tauranga / Mt Maunganui. 2Degrees said they had spent $550 million developing the network as of 21 February 2014.

New features

2degrees have a number of new features not found on other New Zealand mobile phone networks, including:

MNC and dialing codes

The mobile network code is 530-24. NZ-24 or NZ Comms may be displayed on the mobile phones network list. On modern phones, with recent firmware 2degrees will be displayed.

The native STD prefix for the network is 022. New Zealand has mobile number portability, so customers switching from other networks may keep their existing mobile number.

Pay Monthly

2degrees launched Pay Monthly in September 2010 and had a considerable impact on the marketplace. In February 2013 they retired the Pay Monthly Plans and launched new Carryover Plans. Since launch the value included in Carryover Plans has increased and they are now the only Plans in New Zealand to offer Shared Data and Carryover Minutes and Carryover Data that last a year, not a month. Calls and texts to Australian mobiles and landlines are included in the Plan minutes and texts. Plans start from just $29 a month and are available on a month to month, open term. This means that customers have the freedom to change or cancel their plans whenever they wish.

Inbound roaming

2degrees (still called NZ Communications on the Three website and Telstra roaming site) is open to customers with handsets from some foreign networks, including Three, Telstra and Orange UK. These foreign customers can place calls using 2degrees cell sites in cities, towns and localities New Zealand described as broadband zones by 2degrees.

Expansion

In February 2011 2degrees announced that they had obtained financing for a further $100 million network expansion.

2degrees have an ongoing network expansion in place, having recently secured financing to further expand its network and roll out a 4G LTE network.

History

In 1999, the New Zealand Government auctioned off 3G spectrum radio spectrum licence. Rangiaho Everton claimed that the auction breached the Treaty of Waitangi because she believed radio spectrum is taonga and the government has no right to sell it. Everton lodged a claim with the Waitangi Tribunal, which was upheld. It was not until Labour won the 1999 election that Māori were allocated one of the four 2 GHz 3G spectrum licences at a discounted price plus $5 million to develop it.

In 2009, it was announced that NZ Communications (as 2degrees was called then) had signed a roaming deal with Vodafone New Zealand. The deal allowed NZ Communications' customers to automatically roam onto Vodafone's 2G network. At the time the deal was announced, it was suggested the deal might also be expanded to include roaming on Vodafone's 3G network too at NZ Communications' request.

Currently, 2degrees is owned by Trilogy International Partners, a US venture capital firm specializing in mobile networks (58.66%), Communication Venture Partners, a London-based company that invests in telecommunications and related software businesses (27.13%), Te Huarahi Tika Trust (10.17%) and KLR Hong Kong (0.50%). In July 2009, General Enterprise Management Services, a Hong Kong-based private equity fund, sold its 25.76 percent shares to Trilogy.

On 30 March 2013, 2degrees CEO Eric Hertz and his wife Kathy were killed when their twin-engine Beechcraft Baron, which was flying from Auckland to Timaru, ditched in the sea near Raglan at about 12:30pm after reporting engine failure. The plane was found at the bottom of the sea off the coast of Kawhia, 56 metres underwater, on 2 April. In a statement, Hertz' family thanked New Zealanders for their support. Hertz was succeeded as CEO of 2degrees by chairman Stewart Sherriff.

The company is part of New Zealand Telecommunications Forum.

Phones

2degrees offers mobile phones from Alcatel, Apple, Huawei, LG (including Nexus 5), Nokia, and Samsung.

Retail

2degrees has 56 retail stores, including fifteen throughout Auckland, one in Wellington City, one in Paraparaumu, four in Hamilton, two in Tauranga, two in Christchurch and one in Dunedin. The company also runs several smaller kiosk stores, which tend to be located in shopping centers. They also offer their products at 1,523,741 supermarkets, petrol stations and convenience stores.

Services

2degrees halved the prevalent pricing for prepay mobile in the New Zealand market, with voice calls costing 44 cents. SMS messages are charged at 9 cents. Customers will receive 300 to 500 free SMS messages per $30–$50 prepay top-up. Also, customers will receive a special rate of 22 cents for on-network and landline calls, as well as 2 cents per on-network SMS, provided they have topped up within the last 30 days. On 25 May 2010, 2degrees announced several new plans; $10 txt ($10 for 500 any network text messages; later upgrading to 1000, 2000, and now 2500 texts). $6 Data Bundles, $6 for 50 MB of mobile data, $10 for 100 MB of mobile data, and some calling plans. In 2015 2Degrees started offering a plan with 2.5GB data, unlimited calling and sms to New Zealand and Australia for $49 per month.

Mobile Zone Data became available after 3G coverage was turned on. Broadband data packs for use on 2degrees coverage areas: $50 for 3GB expires after two months, $99 for 12GB expires after six months. These packs can be used with prepay or added onto a monthly plan.

2degrees SIM cards RRP for $5 but are typically available for as low as $1, however these do not come with any credit. 2degrees has previously sold $2 and $5 SIM cards with $2 & $5 credit respectively. They gave away free SIMs as part of their Chinwag & launch week campaigns and SIM cards come with most new handsets.

Current 2degrees SIM cards are multi-SIM's (standard, micro or nano) and are able to be activated for either pre-pay or pay-monthly.

Phone numbers

2degrees auctioned 85 special numbers on New Zealand auction website TradeMe for charity, raising over $65,000. The highest selling number was 022 888 8888, likely due to the number eight being considered lucky in some Asian cultures. New customers can choose their own number, on the 2degrees website.

Marketing

2degrees has run commercials featuring Rhys Darby, a comedian known for making jokes and sketches about New Zealand life. They were filmed on location by Film Construction Ltd, a television commercial and digital content production house in Auckland.