Simpson Grierson is pleased to have advised 2degrees on its proposed joint venture with One NZ to combine the two companies' radio access networks (RAN) into a new, jointly owned business (RANCo).

Under the proposal, 2degrees and One NZ would establish a standalone company to own, manage and operate their shared RAN infrastructure on behalf of both telcos. The arrangement is designed to deliver better mobile connectivity for New Zealanders by enabling more efficient investment in coverage, capacity, resilience and new technologies.

The venture builds on existing network-sharing arrangements between the parties, allowing them to avoid duplicating common infrastructure while continuing to differentiate and compete. 2degrees and One NZ would each remain fully independent mobile network operators, retaining ownership and control of the parts of their networks that drive competition – including spectrum management rights, core networks, fibre backhaul and satellite, as well as their digital platforms, support systems and product offerings.

The proposal would support expanded rural and regional coverage, increased capacity in urban areas, a faster rollout of 5G and future technologies, and stronger network resilience across the country.

Michael Pollard, Partner at Simpson Grierson, said of the deal: “Infrastructure sharing of this kind is well established internationally and represents a smart, future-focused step for the New Zealand market. It allows both operators to invest where it matters most for customers, while continuing to compete strongly. We are proud to have supported 2degrees on a transaction that will help deliver better connectivity for more New Zealanders.”

The transaction adds to Simpson Grierson's leading telecommunications M&A practice, which has advised on many of the sector's landmark deals – including the $1.076 billion sale of 2degrees' cellphone towers to Connexa and the $1.7 billion merger of 2degrees and Orcon.

The Simpson Grierson team was led by Partners Michael Pollard, Simon Vannini and James Craig, with support from Corporate Senior Associate Tom Rowland, Solicitor Zac Cran, along with Competition Solicitor Jenna Bernstein.