Statement of Preliminary Issues: Vocus and 2degrees

The Commerce Commission evaluates whether the Vocus-2degrees merger will substantially lessen competition in New Zealand.

Commerce Commission New Zealand · Commerce Commission New Zealand28 January 2022Period: Q1 20224 min read

Last updated 10 June 2026

100%→

Proposed share acquisition of Orcon and 2degrees

1.4%→

Vocus share of total mobile connections (MVNO)

Locked

Companies covered:Vocus Group LimitedTwo Degrees Group LimitedVoyage Digital (NZ) LimitedOrcon Holdings LimitedSparkVodafoneTrilogy International New Zealand LLCTesbrit B.V.

Abstract

This report outlines the Commerce Commission's preliminary investigation into the proposed merger between Vocus Group Limited and Two Degrees Group Limited. Registered on 5 January 2022, the application involves Voyage Digital (NZ) Limited acquiring 100% of Orcon and 2degrees. The Commission is assessing potential horizontal unilateral, coordinated, and vertical effects across national retail markets for fixed-line voice, broadband, and mobile services, where the parties currently hold significant market positions.

Key Takeaways

The Commerce Commission is reviewing the merger of Vocus NZ (Orcon) and 2degrees to determine if it substantially lessens competition.
The deal involves Voyage Digital acquiring 100% of both companies to create a vertically integrated fixed and mobile provider.
Vocus currently operates as the largest MVNO in NZ, representing 1.4% of all mobile connections as of 2020.

stakeholder implications · PDF download

Frequently Asked Questions

Voyage Digital is executing a 100% acquisition of both Orcon and 2degrees to establish a vertically integrated fixed and mobile provider. This consolidation is designed to secure the 3rd market position in the New Zealand telecommunications sector.

The merger is a strategic move to gain the scale and capital necessary for 5G network investment. By combining assets, the entity aims to overcome the high CAPEX barriers that currently limit individual growth for Orcon and 2degrees.

The deal removes New Zealand's largest MVNO from the market, as Vocus currently accounts for 1.4% of all mobile connections. The regulator is specifically examining if this shift will lead to coordinated effects regarding wholesale access among the remaining network owners.

The Commerce Commission has set a deadline of 15 February 2022 for public submissions on the proposal. A preliminary decision on whether the merger substantially lessens competition is expected by 15 March 2022.

Statement of Preliminary Issues: Vocus and 2degrees

Abstract

Key Takeaways

Frequently Asked Questions

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