- RANCo will enable a new way of sharing RAN infrastructure which will make more efficient use of existing infrastructure and reduce unnecessary duplication, while maintaining competition between One NZ and 2degrees.
- More resilient, future-proofed mobile infrastructure will create a stronger platform for future investment in New Zealand’s growth as digital connectivity becomes ever-more important to work, live and play in a digital world.
- One NZ and 2degrees will continue to separately own, and invest in, the parts of their businesses that drive competition and differentiation, including spectrum management rights, core networks, fibre backhaul assets and satellite innovations.
- The proposal is subject to approvals, including from the NZ Commerce Commission and Overseas Investment Office, as well as some reorganisation steps. Subject to these, the transaction is aiming for completion in the first half of 2027.
One New Zealand today announced its proposed plans to establish a network infrastructure sharing arrangement with 2degrees, to combine each company’s RAN infrastructure in a new, jointly-owned business. This proposal would deliver better and more efficient deployment of mobile network assets, including faster rollout of new technologies, and improved resiliency, while enabling One NZ to focus investment on the parts of its network and services that create the most value for customers and support long-term growth.
RAN technology includes the active equipment on mobile sites, such as the electronics and antennas. One NZ and 2degrees currently have a commercial RAN sharing arrangement for a smaller number of sites around the country. Other examples of mobile network infrastructure sharing arrangements include through the Rural Connectivity Group (RCG), and mobile tower companies Fortysouth and Connexa.
Under the proposal, One NZ and 2degrees would contribute their respective RAN assets into a jointly-owned commercial entity. The new entity would own, manage and operate the shared RAN infrastructure, providing network services back to each company via separate wholesale agreements. The model is designed to make more efficient use of existing infrastructure, reduce unnecessary duplication and create a stronger platform for future investment in New Zealand’s digital connectivity.
If approved, One NZ and 2degrees would continue to operate as fully independent retail and wholesale businesses and continue to compete strongly for both consumer and business customers. One NZ would retain ownership and control of its spectrum management rights, core networks, fibre backhaul assets and satellite innovations – preserving the strategic assets and capabilities that underpin differentiated services, customer experience, innovation and competition.
Incoming One NZ CEO, Nick Judd, says RAN network sharing is already common in overseas markets and enables more efficient investment in mobile infrastructure.
“This proposal would deliver real benefits for customers by enabling us to deliver better connectivity. This includes faster access to new technologies such as 6G and improving overall network resilience.
“It also gives us a more efficient platform for long-term network investment, allowing capital to be directed to the areas where One NZ can deliver the greatest differentiation and value for customers, including product innovation, customer experience, core network capability and new connectivity services.
“It supports our sustainability goals by reducing duplication of equipment and lowering overall energy use over time.
“We would continue to operate independently in the New Zealand market, competing strongly with 2degrees and other players on the elements that matter most for consumers, including value, products and innovation.”
This proposal is subject to approvals, including from the NZ Commerce Commission and Overseas Investment Office, as well as some reorganisation steps. Subject to these, the transaction is aiming for completion in the first half of 2027.
Below is a graphic showing an indicative RAN active sharing agreement, for illustrative purposes only:
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Enquiries should be directed to: Nicky Preston, Head of Corporate Affairs, One NZ, 021 445 295, nicky.preston@one.nz
