2Degrees records loss

2Degrees, rival to network heavyweights Telecom and Vodafone, has posted a loss of $76.8 million for the year ended December 31, 2010.

The company made a gross profit of $38.2 million on revenue of $107.6 million according to the NZ Herald.

2Degrees spent around 15% of total expenses, or $18.1 million, on marketing and advertising.

The company is battling to gain ground in the sector, reporting in March it had secured 11% of the country's mobile phone market.

In addition to marketing, 2Degrees is also paying a heavy price building up its nationwide network.