New Zealand’s two largest mobile network operators, One New Zealand and 2degrees, have proposed creating a jointly owned wholesale company to manage and operate their combined radio access network (RAN) infrastructure. The new entity, provisionally named RanCo, would consolidate the antennas and base stations currently owned separately by both companies into a shared platform.

Under the proposal, RanCo would own and maintain the shared RAN assets, providing network services to each operator under distinct wholesale agreements. Despite the consolidation of the radio access layers, each company would retain control over other key parts of their mobile networks, including spectrum management, core network operations, fibre backhaul, satellite connections, digital platforms, and customer-facing products and services.

Nick Judd, incoming chief executive of One New Zealand, highlighted that RAN sharing is already a common practice internationally and allows for more efficient investment in network infrastructure. Judd said the arrangement would benefit customers by enabling better connectivity, faster deployment of technologies such as 6G, and increased network resilience. He added that the move would allow greater capital allocation toward areas where One New Zealand can differentiate itself, such as product innovation and customer experience.

Similarly, 2degrees chief executive Mark Callander noted the challenges of building mobile networks in New Zealand’s varied geography. He said sharing infrastructure where practical would lead to improved coverage, higher capacity, stronger network resilience, and accelerated access to new technologies. Callander emphasized that the arrangement would reduce duplicated investments and enable more effective deployment of resources to enhance network quality for a broader base of New Zealanders.

One New Zealand and 2degrees currently operate a smaller-scale RAN sharing arrangement at selected sites. One New Zealand is fully owned by NZX-listed Infratil, while 2degrees is controlled by Voyage Australia, a joint venture involving the Australian investment bank Macquarie and Avare Superannuation fund, which acquired the company in 2022.

The announcement follows existing infrastructure sharing initiatives in the New Zealand market. Notable examples include the Rural Connectivity Group (RCG), a joint venture between Spark, One New Zealand, and 2degrees to build shared rural cell towers, as well as the tower companies Fortysouth and Connexa. Connexa, established after Spark sold its passive mobile assets in 2022 to a Canadian pension fund, subsequently acquired 2degrees’ passive infrastructure. Fortysouth was created when Vodafone NZ — now part of One New Zealand — spun off its passive assets, with Infratil acquiring a 40% stake.

The proposed formation of RanCo is subject to regulatory approvals from the Commerce Commission and the Overseas Investment Office, as well as required corporate restructuring. If these clearances are obtained, the transaction is expected to close during the first half of 2027.

Spark chief executive Jolie Hodson commented that the proposal appears to expand on the existing network sharing arrangement between One New Zealand and 2degrees. Hodson noted that if approved, New Zealand would effectively move from three to two distinct radio networks, a development that warrants close examination. Hodson reaffirmed Spark’s position as the country’s largest mobile network operator with the most extensive coverage, emphasizing Spark’s continued focus on efficient network investment through its tower company Connexa, the RCG, and other strategic partnerships.