Spark has reset its strategy around the core connectivity services that generate 80% of the company’s margin. There is a renewed emphasis on mobile, managed networks, voice, IoT and broadband.
CEO Jolie Hodson says the move marks a return to basics, but with a sharper focus on building resilience, reliability, and premium customer experiences. In recent months, the company completed half its five-year mobile network rollout, with its 5G network now covering 130 locations and traffic running over its new 5G standalone core.
“We’re excited about this strategy. Yes, it’s a reset with a new road map, but that doesn’t mean it’s not something that’s exciting to go after. And we will continue to help New Zealanders, because that’s the important part here. We’re an enablement company, we have a role to play in supporting New Zealand growth.”
Private 5G is key element. Spark is the first local operator to launch a standalone 5G core. This is an upgrade to the 5G network that enables many of the advanced features the technology promised.
One of those advanced features is “network slicing”, which allows Spark to dedicate parts of the network for specific customers or applications.
Hodson points to use cases such as ports, warehousing and industrial operations where low latency and guaranteed quality of service are essential.
“You’re providing a highly resilient service that gives customers the ability to control and leverage the network in ways they couldn’t before,” she says. That means premium offerings with strong margins, but there are also practical benefits for businesses seeking resilience and flexibility without laying cables.
“A better network means a better customer experience. If you look at the last five years, our customer experience has grown every year. We’ve invested in technologies like the standalone core, the things that matter. Now we’re looking at how we can use those technologies to enable customers to do the things they need.”
While Spark is positioned as a premium service provider, it continues to service other market segments, such as the company’s Skinny brand for a more affordable mobile service.
AI is another advanced technology helping Spark in its renewed focus.
Hodson says Spark is investing heavily in automation and artificial intelligence to improve both its own operations and its customer offerings. Internally, AI helps deflect 20,000 contact centre queries a month, reduces call times, and assists agents with real-time answers.
Transcription tools capture conversations instantly, creating searchable records that improve service and highlight recurring problems.
AI also plays a role in Spark’s network operations, spotting anomalies and combining with automation to reroute traffic when outages occur.
Hodson describes it as a process of systematically applying new tools: “It’s really about using AI at scale where it helps us improve performance, reduce costs, and deliver better experiences.”
Spark uses AI, at the same time, it offers customers guidance on their AI journey. The company runs AI education programmes in partnership with Section, a New York-based business education business founded by NYU Stern Professor Scott Galloway.
It also supports organisations that want to embed AI in their processes. Hodson stresses that businesses don’t need to start big: “All organisations should be finding ways to use it. You don’t have to be a deep technology expert to get value.”
Currently the Ministry for Regulation is reviewing the rules governing the telecommunications sector. Hodson says in general the industry works to a good standard, but the review is interesting because some aspects have matured since the rules were first laid down and may not longer need to have the regulator’s attention.
This winter Spark sold a 75% stake in its data centre business, which unlocked capital. The retained 25% means the company gets to stay in the data centre market. Hodson says the move gives Spark a well-funded partner to build capacity at the pace required to meet growing demand, especially with AI driving data growth.
The company has been acquiring land and resource consents for further expansion, including sites on Auckland’s North Shore and at Dairy Flat. Hodson says demand for local data capacity remains strong, even if large international projects sometimes appear slow to materialise. “This is a long-term trend. Our role is to ensure New Zealand has the infrastructure it needs to support growth.
Spark is an advertising sponsor of the Herald’s Mood of the Boardroom report.