2degrees announces one million customers

CEO Eric Hertz says a third of its customers have ported from Vodafone and Telecom

2degrees Mobile has confirmed that it has reached one million users on its mobile network.

The carrier announced the milestone today at Auckland's Wynyard Quarter. CEO Eric Hertz told Computerworld that he estimates 2degrees has cornered 20 percent of the New Zealand mobile market.

Only 10 percent are postpaid, the rest are prepaid customers he says.

(2degrees CEO Eric Hertz and his million)

Hertz declined to comment on the average revenue per user (ARPU) on the network, but says 2degrees' revenue share in the market is just under 10 percent.

He says the cornerstone to further growth will be focusing on mobile data.

"Data use on our network doubles every six months, that's tremendous and not something we see slowing down anytime soon," says Hertz.

Hertz says there are no new investors to announce at this time.

Asked to comment on the recent news of Vodafone buying TelstraClear, Hertz says 2degrees will continue to fight for business users.

"There is still a solid opportunity for a third mobile competitor. Not everyone needs an integrated bundle, but everyone needs mobile," says Hertz.

Hertz continued to say he was not worried about whether the "big players" would get the lion's share of the 700 Mhz spectrum when it becomes available next year following the digital TV switch over.

"It's not about how much question the big players have, but whether we can get enough to meet our own demands," says Hertz.

In a press statement announcing the one millionth customer, Hertz says a third of 2degrees's customers have ported from competitors Vodafone and Telecom.

"More than a million New Zealanders have made it clear they wanted choice and competition in the market," says Hertz.

"Seeing three players compete to win and keep customers is a fantastic outcome for all mobile users. Competition is bringing down prices and increasing the range of devices available."

2degrees launched nationwide 2G services to the prepay market in August 2009, acquiring 206,000 customers within six months. By March 2011, with a 3G network and post-pay service in place it had grown to over 580,000.

By the numbers (according to 2degrees):

1 million customers

$450 million invested

35 retail stores

700 staff

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