2degrees has purchased Internet service provider Snap and will launch fixed-mobile services this year, accelerating its growth as a full service communications provider.
The two growing challengers will combine under the 2degrees brand, delivering a broadband and mobile service to consumers, businesses and enterprise customers nationwide.
The agreement brings together the mobile provider and broadband ISP with the highest customer satisfaction ratings in the industry at a time when New Zealanders are embracing data intensive mobile solutions and moving to new UFB fibre services.
2degrees CEO Stewart Sherriff says the two companies have enjoyed a selling partnership arrangement for the past two years and the purchase is a logical and comfortable move for both.
“Snap provides the perfect complement to our mobile offering and will allow us to deliver the total package that our customers – and theirs – have been asking for,” says Mr Sherriff.
“Snap and 2degrees would have to be the best fit I’ve seen in terms of people, network and product. They have a great team of people who do the things we can’t do, but they operate under the same values – which shows through in what their customers say about them.”
Snap CEO Mark Petrie will join the 2degrees senior leadership team and lead the fixed services division within 2degrees.
Mr Petrie says the deal will help Snap deliver on its potential.
“One thing we’ve learned in the last couple of years, apart from the fact that we work well with 2degrees, is that there is a limited window of opportunity to win business as the UFB networks are rolled out. A fixed-mobile offer allows us to put our best foot forward and 2degrees is the best company to drive that growth,” says Mr Petrie.
The 2degrees workforce will expand to 900 staff, with Snap’s 120 staff joined by the 2degrees team in Christchurch at Snap’s office. Snap’s Auckland-based sales staff will move to 2degrees’ Newmarket office.
The move means there is now a true alternative to the incumbent providers, with 2degrees 2G, 3G and 4G mobile networks complemented by Snap’s ADSL, VDSL and fibre broadband services and underpinned by a New Zealand-based 24x7 customer care team and a 50-strong national store network.
Mr Sherriff says there will be no immediate change for customers, with the integration of back office systems to take place over time and in a way that minimizes the impact on them.