2degrees and One NZ Plan to Merge Radio Access Networks

Two major mobile carriers, 2degrees and One NZ, have announced plans to merge their radio access networks in a joint venture. The transaction will be subject to approval from the Commerce Commission.

The companies aim to complete the project by the first half of 2027, establishing a new company to manage shared physical assets like antennas and base stations. Both carriers will then buy network capacity back from the business.

This move reflects a shift in industry practice following years of mobile operators jealously guarding their cell sites. The strategy marks a significant change as operators now compete on core network performance, satellite partnerships, retail pricing, and customer service.

The proposed merger is part of a broader effort to share infrastructure across the country, including existing relationships with rural towers funded by the government in the Rural Connectivity Group (RCG).

If approved, Spark will be left as the only New Zealand operator running a fully separate national radio network. This move represents a significant change for mobile competition and highlights how industry practices are evolving to accommodate more efficient use of shared resources.

The plan underscores the Commerce Commission's role in ensuring fair competition while also supporting infrastructure sharing initiatives that benefit consumers by reducing costs.