Orcon Internet Entering New Zealand Mobile with Vodafone Agreement

Orcon Internet has signed a heads of agreement with Vodafone New Zealand, with a view to launching mobile phone and data services in 2007.

The agreement between Orcon and Vodafone is likely to facilitate one of New Zealand’s first wholesale mobile services agreements.

Orcon’s General Manager of Operations and Regulatory, Scott Bartlett, says adding mobile services to the Orcon product line-up is a natural progression of its business as well as adding increased competition into the marketplace.

The company believes that the entry into this market is going to drive competition and fuel innovation in services. While recent regulatory action by the government has focused on broadband, Orcon says that a voluntary commercial offer in the wholesale mobile space is the best option to stimulate competition and deliver benefits sooner.

“The ISP industry is undergoing significant change as a result of the Government’s unbundling decision. However we are probably 18 months away from seeing the delivery of local loop unbundling services in this country because the legislative and regulatory process just takes too long. However with Vodafone offering a voluntary bilateral commercial offer to Orcon, it is our hope that the New Zealand public will see more competition in the mobile space early in 2007,” says Mr. Bartlett.

Other countries that have mobile wholesale operators have seen a dramatic upswing in market competition, for example Virgin Mobile in the UK.

Vodafone New Zealand’s General Manager Commercial Development, Tom Chignell, says the government has made it clear it wants to encourage further competition in the mobile market by encouraging new market entrants.

Orcon will be posting updated information on the launch of Orcon Mobile on its website.