Telecom New Zealand Signs Deal to Share 3G Networks with Three Telcos

Telecom Corp of New Zealand (Telecom) said today (11 May) that it has signed agreements with Digital Island, Telcoinabox, and Zintel Cogent to allow them to use its 3G network, Dow Jones reports. The incumbent operator will provide access to the network through mobile virtual network operator (MVNO) agreements with its Wholesale division, thus increasing revenue for the company. Telecom has not released any financial details about the agreements. The launch of Telecom Wholesale's new mobile service offers telcos the opportunity to source a full range of telecom services, according to Nick Clarke, Telecom's marketing manager for the Wholesale division.

He added that the Telecom Wholesale MVNO offering has been designed to promote genuine competition in the market by offering simple, competitive pricing that can be tailored to different segments, while also providing the flexibility for service providers to differentiate products from their competitors.Significance: The move will enable Telecom to make full use of its existing telecoms infrastructure and generate additional revenues. The development will also enable alternative operators to speed up their service expansion and boost market competition.