2degrees unveils $100m network expansion

2degrees chief executive Eric Hertz.Photo / Sarah Ivey

2degrees plans to invest $100 million in its network over the next two years, extending its reach into more parts of New Zealand.

The announcement follows a deal between 2degrees and international telecommunications giant Huawei, which will provide technology for the build.

2degrees was launched in 2009 and provides mobile phone services on its own network, competing with Vodafone and Telecom.

The $100 million dollars of new capital brings the total amount of investment in the network to $400 million since its conception.

2degrees chief executive Eric Hertz said the new investment will ensure the network is ready to handle the requirements of 4G [fourth generation] smartphones.

"We're very conscious that we need to build networks that deliver on tomorrow's speed and capacity demands, so being able to upgrade to 4G via a software activation rather than a network rebuild is especially important," Hertz said.

4G offers mobile internet speeds over ten times faster what is currently offered on 3G.

Hertz also announced that 2degrees will open 30 new retail stores this year, and employ 80 staff in a new Christchurch- based contact centre.

Hertz said the partnership with Huawei followed competitive negotiations, but was influenced by the global tech company's previously strong performance.

"Huawei technology underpins our current network and has impressed us with the way it performs," he said.