One NZ, 2degrees plan shared mobile network business

One NZ and 2degrees have proposed combining their mobile radio access network infrastructure into a jointly owned wholesale business called RANCo, subject to regulatory approval.

Under the arrangement, both operators would contribute their radio access network assets to a new entity that would own, manage and operate the shared infrastructure. RAN technology covers the active equipment on mobile sites, including antennas and electronics. Each company would then receive network services back through separate wholesale agreements.

Both groups would remain separate retail and wholesale competitors if the transaction proceeds. One NZ would continue to own and invest in its spectrum management rights, core networks, fibre backhaul assets and satellite innovations, preserving areas of differentiation between the businesses.

The proposal builds on an existing commercial sharing arrangement between the two operators that already covers a smaller number of sites across New Zealand. It would expand that model into a broader platform designed to reduce duplicated network equipment and make wider use of existing infrastructure.

Regulatory process

The transaction requires approval from the NZ Commerce Commission and the Overseas Investment Office, along with internal reorganisation steps. The companies are aiming to complete the deal in the first half of 2027.

Network-sharing agreements are already used in parts of New Zealand's telecommunications market. The Rural Connectivity Group is one example, while tower businesses such as Fortysouth and Connexa are also part of the country's wider infrastructure-sharing landscape.

According to One NZ, similar models are used in overseas mobile markets. Supporters argue such structures let operators spread the cost of network deployment while keeping competition focused on pricing, service and product design.

Incoming One NZ Chief Executive Officer Nick Judd said the company saw the move as a way to change how it allocates capital across its network and services. He also linked the structure to technology upgrades and resilience.

Judd said the proposal would improve customer connectivity, speed access to new technologies such as 6G and strengthen overall network resilience.

He said it would also provide a more efficient platform for long-term network investment, allowing capital to be directed to 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.

He said the proposal supports One NZ's sustainability goals by reducing equipment duplication and lowering energy use over time.

Judd added that One NZ would continue to operate independently in the New Zealand market, competing strongly with 2degrees and other players on value, products and innovation.

2degrees Chief Executive Officer Mark Callander said network sharing was well established internationally and could improve infrastructure investment in New Zealand.

"New Zealand can be a challenging country in which to build mobile networks. Sharing the infrastructure where it makes sense means we can deliver even more of the things that matter to customers: better coverage, greater capacity, stronger resilience and faster access to new technology," said Mark Callander, Chief Executive Officer, 2degrees.

"This is about 2degrees building an even better mobile network for New Zealand and further enabling strong competition across the industry. 2degrees and One NZ will remain independent businesses, competing hard for customers on price, products, service and innovation," said Callander.

Callander said the proposed arrangement could create more opportunities to expand rural and regional coverage, increase capacity in urban areas and strengthen the resilience of New Zealand's mobile infrastructure.

"Instead of duplicating investment where it adds little customer value, we can invest more effectively in extending and improving the network. Ultimately, that means better connectivity for more New Zealanders," added Callander.

Competition focus

A central issue for regulators will be whether deeper infrastructure sharing can coexist with competition in the consumer and business mobile markets. The companies argue competition would remain intact because they would continue to control the assets and services that shape their individual offers to customers.

Under the proposal, the shared business would cover radio access infrastructure rather than the full mobile network stack. Core networks, spectrum and backhaul would remain outside the joint venture, leaving each operator to make its own decisions on services, network features and commercial strategy.

That distinction is likely to be important in the regulatory review because radio access networks are one of the most capital-intensive parts of a mobile operator's footprint. Combining those assets can reduce duplicated spending, but authorities typically examine whether such arrangements might also weaken incentives to invest or narrow differences between rivals.

For One NZ and 2degrees, the proposal comes as operators face continuing pressure to expand coverage, improve resilience and prepare networks for future generations of mobile technology. The companies argue a shared structure would create a stronger base for future investment as digital connectivity becomes more important for households and businesses.

If approved, the new entity would mark one of the more significant infrastructure-sharing moves in New Zealand's mobile sector. The companies say they would still compete strongly for consumer and business customers on value, products and innovation.