2degrees secures $165m 4G funding
2degrees has secured a $165m banking facility from the Bank of New Zealand, as the telco ramps up its efforts to bring 4G across the country.
Using the cash to pay Chinese firm Huawei Technologies to construct the network, 2degrees expects to deploy 4G to New Zealanders early next year.
As part of the agreement, the BNZ facility will now replace vendor finance of some $31.2 - set to be paid over four years starting this September.
"Having been cash-flow positive for almost a year, 2degrees is able to fund its own operations without shareholder funding," says Stewart Sherriff, chairman and acting chief executive, 2degrees.
"Bank finance will accelerate the business."
After securing the contract to built Telecom's 4G network, Huawei, currently seeking to allay security concerns with Kiwi politicians, says the 2degrees contract is another boost for the company.
"[This is a] hugely positive step for us," says Arther Zhang, CEO, Huawei New Zealand.
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