Incoming One NZ chief executive Nick Judd said Ran network sharing was already common in overseas markets and enabled more efficient investment in mobile infrastructure.

“This proposal would deliver real benefits for customers by enabling us to deliver better connectivity. This includes faster access to new technologies such as 6G and improving overall network resilience,” Judd said.

“It also gives us a more efficient platform for long-term network investment, allowing capital to be directed to the 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.”

2degrees chief executive Mark Callander echoed the sentiment, saying New Zealand could be a challenging country 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,” Callander said.

“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.”

One NZ and 2degrees currently have a commercial Ran sharing arrangement for a smaller number of sites around the country.

One NZ is 100% owned by NZX-listed Infratil. 2degrees is owned by Voyage Australia, a joint venture formed by Australian investment bank Macquarie and Australian superannuation fund Aware Super to acquire the telco in 2022.

Other examples of mobile network infrastructure sharing arrangements include those through the Rural Connectivity Group (RCG), and mobile tower companies Fortysouth and Connexa.

The RCG, a joint venture between Spark, One NZ and 2degrees, was created to build shared rural cell towers in remote areas under the Rural Broadband Initiative.

Connexa was formed when Spark sold its mobile network passive assets (the cell towers and the land or leased land they sit on) in 2022 to a Canadian pension fund. Connexa, in turn, bought 2degrees’ passive mobile network assets.

Fortysouth was formed when Vodafone NZ (now One NZ) spun off its passive network assets – also in 2022. Parent company Infratil took a 40% stake in Fortysouth, with the balance bought by international investors.

The proposal is subject to approvals from the Commerce Commission and Overseas Investment Office, and reorganisation steps.

Subject to these, the transaction aims for completion in the first half of 2027.

Spark chief executive Jolie Hodson said today’s announcement appeared to be an extension of an existing arrangement between One New Zealand and 2degrees.

“…but if approved will mean New Zealand will move from three to two radio networks, which will need to be considered carefully.”

Hodson said Spark remained New Zealand’s largest mobile network with the widest coverage nationally.

“Spark continues to focus on efficient network investment including through our tower company Connexa, Rural Connectivity Group (RCG) and strategic partnerships.”

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.