ComCom to test 2degrees-One NZ Ran joint venture

Regulator examines shared network deal

The
Commerce Commission says it will only give clearance to the
proposed radio access network joint venture between 2degrees
and One NZ if it passes a series of tests showing it
will not ‘substantially lessen
competition’.

2degrees and One NZ plan to combine
their existing radio access network (Ran) assets in a new
joint venture, Ranco. The new company would own and operate
the Ran assets currently owned separately by the two mobile
operators.

In its statement of preliminary issues, the
Commission identifies three broad potential competition
effects: unilateral effects, coordinated effects and
vertical or conglomerate effects.

Of these, the
question of unilateral effects is given the most
consideration. This asks whether the proposed Ranco would be
in a position to raise prices or reduce competition on its
own.

Ranco would replace two buyers of Ran equipment,
installation, maintenance and related services. Potentially
this would give it greater buying power than either 2degrees
or One NZ has today.

The Commission specifically wants
to know whether this could lead to lower supplier prices
that in turn reduce suppliers’ incentives to invest,
innovate or remain in the market.

Competition and
pricing risks

A potentially more important question
is whether removing direct competition between 2degrees and
One NZ over Ran infrastructure gives Ranco an ability to
increase the cost of mobile services, or reduce quality,
service or innovation?

To better understand this, the
Commission says it will test four things:

• how
  closely 2degrees and One NZ currently constrain each
  other;
• whether Spark and other competitors can
  replace that lost constraint;
• how readily
  competitors could enter or expand; and
• whether
  suppliers or customers have countervailing bargaining
  power.

Consideration of coordinated effects asks
a separate but closely related question: does Ranco make
coordination between mobile operators more likely, easier to
sustain or more complete?

The Commission wants to know
if the JV could change market conditions so that 2degrees or
One NZ and the remaining competitors, particularly Spark,
could coordinate their behaviour more easily, completely or
sustainably.

2degrees and One NZ argue that Ran
equipment is a fairly homogeneous input and isn’t visible
to customers. The Commission is testing that argument,
asking whether the joint venture could change the
competitive dynamics sufficiently to increase the risk of
coordination.

Then there are the vertical or
conglomerate effects: could Ranco be used to disadvantage
rivals?

Harder for Spark?

The practical
question is whether Ranco could make it harder for Spark or
a prospective fourth mobile network operator to obtain
Ran-related services on competitive terms.

2degrees
and One argue this shouldn’t happen because Spark already
has an extensive Ran network and operators could deploy
their own Ran infrastructure. They also say the joint
venture isn’t bundling Ran with retail or wholesale
products.

The Commission says it will test that
argument. It says it will examine the degree of vertical
integration in telecoms and whether Ranco acquires market
power upstream or downstream.

There are two other
important questions in the statement of preliminary issues.
The first is market definition. This is not entirely clear
at this stage. While this might sound like a semantic
argument, this could become important because competition
can look different if the relevant markets are defined more
narrowly around particular products, services, locations or
customers.

What happens if the deal fails?

The
other fundamental issue the Commission needs to address is
what happens if Ranco does not go ahead. 2degrees and One
say the answer is simple: they would continue independently
owning and operating their Ran assets.

This is
something the Commission says it wants to test. Could, for
example, 2degrees and One pursue alternative arrangements if
the joint venture doesn’t proceed.

The question is
not simply whether Ranco would lessen competition, but what
would happen if it did not go ahead.

In the statement
of preliminary issues, the Commission says it will canvas
views from Ran suppliers about whether 2degrees and One NZ
actually compete against each other when buying Ran
equipment and services, including tendering, observed
competitive reactions, price-quality negotiations and
differences in commercial dealings.

It also plans to
ask mobile operators, which, in effect means Spark,
questions about whether RAN assets actually matter to retail
and wholesale competition, and how operators differentiate
themselves.

2degrees and One NZ’s argument depends
on Ran being seen as a largely homogeneous,
non-differentiating input. The Commission plans to test that
by asking the people who buy, sell and operate the
equipment.

Iridium shareholders approve Rocket Lab
offer

Iridium shareholders overwhelmingly approved
Rocket Lab’s acquisition at a special meeting on September
24, 2026. About 99.6 percent of votes cast were in favour.
This represents around 81 percent of Iridium’s outstanding
shares. The deal is expected to close by mid-2027, pending
remaining regulatory approvals.

The terms of the deal
value Iridium at $54 per share: $27.00 in cash plus Rocket
Lab stock, subject to an exchange ratio collar.

Rocket
Lab founder Sir Peter Beck says the deal is a step toward
combining Iridium’s network and spectrum with Rocket Lab’s
launch capabilities. Earlier steps included clearing the US
antitrust review and completing a $1.94 billion equity
programme to reduce bridging loan
commitments.

In other
news…

Telecommunications Emergency
Management Plan nears completion

The
Telecommunications Forum (TCF) says its Telecommunications
Emergency Management Plan (Temp) is close to being finished.
T he plan outlines how providers will collaborate before,
during and after major emergencies. It aims to maintain
critical communications when New Zealanders need them most.
It has been developed jointly across the industry and is one
of the TCF’s major priorities this year.

Tuanz
celebrates 40 years with return to break-even

The
Technology Users Association of New Zealand posted a $128
net surplus on $542,598 revenue for the year to March 2026,
returning the member organisation to break-even after a
difficult year in 2025.

Membership grew to 174, with
its Flint (future leaders) network reaching 897 members. The
organisation also marked its 40th anniversary and says it is
gearing up for election-year advocacy on AI, data use and
digital inclusion.

Phone buyers should look beyond
upfront price

One New Zealand’s general manager of
retail, Sam Bruce, says consumers should look beyond the
sticker price when upgrading to a premium phone. These now
regularly cost over $1,500.

Writing in a
One NZ press release, Bruce suggests the more useful
figure is the “effective upgrade cost”. That is the
retail price minus the trade-in value minus the accumulated
customer value, plus any financing costs. He says the
traditional transactional relationship between telcos and
customers has ended, and that loyalty, multiple connections
and overseas use should count towards the cost of a new
device.

This time last year cell towers were under
attack

September
2025 saw further attacks on cell towers, a crime wave
that gathered momentum in the early part of 2025. The
sabotage appeared to focus on rural towers which was
probably more about not getting caught than a targeted
campaign to disrupt communications in areas with few
alternative channels.

Five years ago Spark
picked Nokia for its 5G rollout. Previously the
telco had partnered with Huawei for its mobile networks, but
when geopolitical considerations saw the Chinese
telecommunications giant ruled out, Nokia
won the majority of Spark’s 5G
business.

Ten years ago Vodafone was
pushing FibreX. At a time when people were waiting
for UFB fibre connections, Vodafone
plugged the gap promising quick installs for customers
choosing its hybrid-fibre coaxial network. The
controversial, and at the time new, FibreX brand name soon
became a serious liability for the telco.

MORE ON THE
VODAFONE FIBREX CASE

2022FibreX
record fine not enough for Commerce
Commission

2021The story
behind Vodafone’s FibreX court
ruling

2021Vodafone
guilty over FibreX

2018FibreX
marketing lands Vodafone in
court

2017Commerce
Commission investigates Vodafone
FibreX

Bill Bennett has covered New
Zealand telecommunications for nearly 40 years and was named
Tuanz Journalist of the Year 2025.

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