A third significant mobile company operating in New Zealand before the end of the year looks more likely with the investment yesterday by a United States company in NZ Communications (NZC).
Trilogy International Partners has taken a 25% shareholding in NZC for an undisclosed sum from Econet Wireless, the South African-based company which, along with Hautaki Trust, co-founded NZC.
Communications Minister David Cunliffe said at a recent telecommunications conference in Wellington that a third player in the mobile market was likely to be operating before Christmas, but gave no details.
NZC chairman Bill Osborne yesterday said the investment by Trilogy was good news for New Zealand consumers as it underlined the company's commitment to enter the market and offer "competitive alternatives" to mobile phone users.
"Already we are building cellphone towers in Auckland and Christchurch and will commence building towers in Wellington later this month.
"We are poised to go, and later this year we will make an announcement on our definitive launch date."
NZC had concluded a roaming agreement with Vodafone and had a contract with Chinese supplier Huawei Technologies to supply the latest mobile phone equipment, he said.
The realignment taking place within the telecommunications regulatory environment was creating a market where a third operator could succeed.
Hautaki Trust would retain a large investment in the new mobile phone operation.
It was pleasing to see the patience of the founding Maori investors was close to being rewarded, Mr Osborne said.
Trilogy executives were among the leaders in establishing global mobile networks, including Irish company Meteor, which was the third entrant into a saturated market - similar to that of NZC.
Trilogy spokesman Stewart Sherriff said in a statement New Zealand was edging towards a normal OECD regulatory environment.
Provided the momentum was maintained, a third operator could be successful.
"Create the right environment and NZC has the products, services and know-how to put a compelling proposition to local consumers," Mr Sherriff, the former Meteor chief executive, said.
At a glance
- NZ Communications is based in Auckland and employs more than 120 people.
- Major shareholders are Trilogy International Partners (25%), Hong Kong-based General Enterprise Management (25%), London-based Communication Venture Partners (25%), Hautaki Trust (16%).
- Trilogy was founded in 2005 and is a privately-owned US venture capital company.
- Econet Wireless will retain an interest in NZ Communications through an investment in Trilogy and an ongoing advisory relationship with Hautaki Trust.
