2Degrees has reached one million customers after three years in the market, increasing their rivalry with Telecom and Vodafone.
The mobile phone network now holds over 21% of the New Zealand mobile industry, with customers bringing numbers over from other networks.
"More than a million New Zealanders have made it clear they wanted choice and competition in the market," says Eric Hertz, chief executive at 2degrees.
"Competition is bringing down prices and increasing the range of devices available.
"Kiwis have become increasingly attached to their mobile phone and are savvy when it comes to value, service and easy-to-understand products.
"Seeing three players compete to win - and keep - customers is a fantastic outcome for all mobile users.”
Vodafone reported 2.4m customers in 2011 while Telecom currently serve around two million customers.