A vague update from 2degrees

2degrees CEO Eric Hertz at the August 1m customer announcement

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In press release this morning (below) 2degrees said data usage on it network on Christmas day was up 200% over last year.

A spokeswoman later told NBR that for 2012, data usage was up 300%.

That's good. Probably. Up 300% from what?

Anyone's guess.

The company's not attaching any hard numbers to its percentage figures*. Or giving any update on customer numbers at the point. The joys of being privately held.

The release also says 2degrees has "sold tens of thousands of high-quality smartphones on Pay Monthly plans in 2012, such as the Samsung Galaxy S3." 

That gels with the company's claim in August last year that it had hit 100,000 contract customers (and 1 million total).

Judging by the latest (sliding) customer numbers from Vodafone and Telecom, 2degrees is obviously doing pretty well. But just well? We'll have to wait for its next official customer number update, or financial filing.


* Vodafone recently said data usage on its network had doubled over the past 12 months. The carrier says since 2008 (when the first iPhone was released in NZ), total traffic on its network has jumped from 5 terabytes (5120 gigabytes) a month to 220 terabytes (225,280 gigabytes) a month.

RAW DATA: 2degrees statement

04 February 2013

Record-breaking demand from customers for all things mobile has seen 2degrees hit a number of major network milestones.

New Zealanders’ love affair with new generation smartphones and tablets has seen data usage on the 2degrees network almost triple in the last year. Last month alone (January 2013), customers used the most data ever recorded on the 2degrees network in one day.

The holiday period also saw 2degrees customers smash all previous usage records with an 81% increase in national voice and a 74% increase in international voice minutes on Christmas Day. Data usage also soared by a record 200% on last year.

2degrees customers are also sending more than double the amount of texts they were two years ago.

2degrees Chief Marketing Officer Malcolm Phillipps says 2degrees research shows that 85% of customers with smartphones are regularly watching videos, social networking and researching products and services and 73%* admit they never leave home without their smartphone.

“This is unprecedented growth and clearly shows that we’re not only using mobile to communicate in more ways, but also more than ever before,” says Mr Phillipps.

“The usage patterns of our million-plus customer base has provided us with valuable insight and is the motivation behind today’s launch of a range of new 2degrees consumer and business plans.

Our new plans have more voice, text and data and all share two unique 2degrees benefits – all Pay Monthly customers get to keep any unused minutes at the end of each month and also get to use their data across all of their devices.”

Mr Phillipps says the new plans, which are only available on 2degrees, also make things simpler and provide more value than ever before.

“There has never been a better time to own a smartphone,” he says.

“Having sold tens of thousands of high-quality smartphones on Pay Monthly plans in 2012, such as the Samsung Galaxy S3, we know that our customers have an insatiable demand for voice, text and data and now have a choice of price points they can afford.”                                                         

Looking ahead, Mr Phillipps expects further growth this year as more Kiwis realise the benefits of mobile.

“We’re expecting smartphone sales penetration to reach 60%  this year and usage growth to continue  – particularly in regards to data - as customers find more ways to use mobile devices in their everyday work and personal lives.”

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8 Comments & Questions

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Despite me and some associates using some 2 degree services let us not forget with the usual Waitangi circus looming, the 'leg up' by the taxpayer they got when the labour party dished out spectrum allocated according to race.
2 Degrees will forever be a tainted apple, good to eat but with a bitter if not rotten core.

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If it wasnt for the third player in the market you would still be getting ripped off by the two big Telcos.

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I'd leave 2Degrees in an instant, if it weren't for the early termination fees.

Their 3G coverage in Auckland's CBD is atrocious. It's not unusual to only have "Edge" coverage, K' Rd being a prime example. You'd expect Silvia Park, the second largest mall in the country, to have decent coverage... Not in my experience.

Bah, humbug.

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Chinese-run company. Visit just about any store and try and find a staff member whose first language is English, and 3G coverage is so poor it's beyond a joke. Want decent coverage in any of the main centres forget about it on 2Degrees. Go Vodafone or Telecom.

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You visited an actual physical store? Sorry I don't think you're part of their core audience :p

Also given that outside the main centres their coverage *is* the Vodafone towers I think you might have an issue in your assertion

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And Vodafone and Telecom is run by? And their profit goes to where? Chinese-run company? Where did you get that? If you are talking about the vendor they use, Telecom and Vodafone use them as well. As long as I get cheap price for a call, text and data I'm all right with it. They compete with bullies that after years in the market shows they can lower their price. But instead they lied to their customers and charged them more prior to 2D. I love a good challenge :-)

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I suggest you read what I wrote again. 2Degrees provides coverage off its own cell sites in main centres and 3G coverage is very poor when compared to Telecom or Vodafone. I understand 2Degrees uses national roaming outside their coverage footprint and had no issue with 3G when attached to Vodafone towers!

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May I suggest you visit the vfone facebook site. There are numerous comments from dissatisfied customers concerning lack of coverage and this includes Auckland. Even after the recent network upgrade to DC-HSDPA+. I realise not all Auckland regional cellsites have been upgraded.

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