Just announced, The Commerce Commission has given the thumbs up to allow Vocus Group and 2degrees to merge!
In a nutshell, there’s a proposed transaction that would see Vocus Group acquire all of the shares from 2degrees shareholders, meaning these two companies will be merged together. The Commerce Commission has given the okay to this transaction!
Vocus Group is a major telecommunications network operator in New Zealand. They offer solutions for business, government and wholesale with their extensive fibre network that spans 4,200km in New Zealand! They also own the popular providers Slingshot and Orcon. Both providers offer awesome deals with Slingshot providing great all-inclusive packages for broadband and power, while Orcon delivers the fastest broadband speeds, with things like gigabit and Hyperfibre.
Meanwhile, 2degrees is one of the largest mobile and broadband companies that provides various telecommunication services to Kiwis all across the country through their extensive network coverage. ‘Fighting for fair’ is their motto and they sure do deliver on that with incredible mobile and broadband plans that cater to all Kiwis out there!
This merger will see, “...the vertical integration of 2degrees’ mobile network with the largest mobile virtual network operator…” says Sue Begg (Deputy Chair of the Commerce Commission). Simply put, 2degrees is joining forces with a larger provider, Vocus!
This is exciting stuff for Kiwis, as a merger can be great for consumers! It allows for the businesses to perform more efficiently, deliver cheaper plans and provide a better service!
However, as with any merger, it’s the Commerce Commission’s job to look at what sort of impact it might have on both the retail and wholesale telecommunications market. The one thing they are looking out for is if the merger will result in a lack of competition within the market. Competition is really important as it means businesses are constantly challenged to offer lower prices and better deals than their competitors. Which of course, is better for consumers! More competition = more savings for you!
In one word: yes!
Luckily for Kiwis, the Commerce Commission, after much investigation, has come to the conclusion that the merger between Vocus Group and 2degreess won’t substantially decrease competition in Aotearoa! This is why they’ve decided to allow the merger to happen.
“The focus of our enquiries was on wholesale and retail competition in broadband and fixed voice and mobile services. The evidence before us indicates that the merged entity will continue to face strong competition from existing competitors, including Spark and Vodafone,” said Sue Begg.
Vocus also stated that, “We do not consider the transaction will significantly change the incentives of network operators to grant access to mobile virtual network operators.” In other words, Vocus assures consumers that this merger will not negatively impact other providers (like Spark or Vodafone). The merger won’t be preventing other providers from doing business as usual! That’s great for consumers who are already with those providers and also to maintain a healthy competitive market. That of course, is a win for all consumers!
This merger will be great for Kiwi consumers as Vocus Group and 2degrees joining forces will result in these companies being more efficient and delivering better service. Both companies will be able to take valuable aspects from each other’s business practices in order to scale up what they can offer to their customers. So really it’s never been a better time to be a 2degrees, Slingshot or Orcon customer!
Also, since this merger will not impact competition in the market, customers can rest knowing that there will be heaps of different plans out there to choose from. Plus, the competition means providers will be forced to find ways to offer the best plans possible! This will save you money and get you the right plan that suits your needs!
This is why comparing is super important. You’ve got to compare what’s out there, as you may just be missing out on the best deals!
With the news of this merger, it shines a light on the awesome companies that are Slingshot, Orcon and 2degrees. Now’s a great time to check out what they have on offer. They may just be the best provider for you to switch to. This merger shows that they’ll only continue to get better!
Easy, just jump on NZ Compare, throw in a few details and you’ll see all the awesome broadband and power plans they have available for you! It’s that simple.
So check out our website Broadbandcompare.co.nz or if you’d rather talk to our friendly customer service team, then give us a free call on 0508 22 66 72.
We can’t wait to see what awesome savings and deals this merger brings for Kiwis around the motu! Exciting times!
