New Zealand's 2degrees Extends Contracts with Huawei
Published on: 18th Jun 2013
Note -- this news article is more than a year old.
New Zealand's smallest mobile network, 2degrees says that it has secured a $165 million credit facility which will be used, in part to repay a $120 million vendor financing loan agreed with Huawei in 2011.
The rest of the money will be used to fund another network upgrade agreement, also with Huawei for LTE services. The LTE upgrade is expected to be completed next year.
2degrees' acting CEO, Stewart Sherriff told NBR that the 4G upgrade could be achieved relatively cheaply as it is the same vendor carrying out the work on their existing hardware.
In related news, he also confirmed that the mobile network has finally broken into operating profit on an EBITDA basis and thanks to the bank funding agreement wouldn't need any further cash injections from shareholders.
The company has a market share of around 12% -- and competes with Telecom NZ and Vodafone.
On the web: NBR