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Spark New Zealand Limited is a New Zealand telecommunications company providing fixed-line telephone services, a mobile phone network, internet access services, and (through its Spark Digital division)
ICT ICT may refer to: Sciences and technology * Information and communications technology * Image Constraint Token, in video processing * Immunochromatographic test, a rapid immunoassay used to detect diseases such as anthrax * In-circuit test, in ...
services to businesses. It was known as Telecom New Zealand until it was rebranded with its current name in 2014. It has operated as a publicly traded company since 1990. Spark is the second-largest wireless carrier in New Zealand, with 2.3 million subscribers as of July 2017. Spark is one of the largest companies by value on the New Zealand Exchange (NZX). As of 2007, it was the 39th largest telecommunications company in the OECD. The company is part of New Zealand Telecommunications Forum. Telecom New Zealand was formed in 1987 from a division of the New Zealand Post Office, and privatised in 1990. In 2008, Telecom was operationally separated into three divisions under local loop unbundling initiatives by central government – Telecom Retail; Telecom Wholesale; and
Chorus Chorus may refer to: Music * Chorus (song) or refrain, line or lines that are repeated in music or in verse * Chorus effect, the perception of similar sounds from multiple sources as a single, richer sound * Chorus form, song in which all verse ...
, the
network infrastructure A computer network is a set of computers sharing resources located on or provided by network nodes. The computers use common communication protocols over digital interconnections to communicate with each other. These interconnections are ...
division. This separation effectively ended any remnants of monopoly that Telecom Retail once had in the market. In 2011 the demerger process was complete, with Telecom and Chorus becoming separate listed companies. The company changed its name to Spark New Zealand on 8 August 2014. Spark has 63 retail locations around New Zealand, including 16 in Auckland.


History

The Postal Services Act 1987 split the then New Zealand Post Office into New Zealand Post Limited (trading as NZPost), Telecom Corporation of New Zealand Limited (trading as Telecom) and Post Office Bank Limited (trading as PostBank, sold to
ANZ ANZ may refer to: People * Anz (musician), a British DJ and electronic musician Banks * ANZ (bank), Australia and New Zealand Banking Group Limited, the fourth-largest bank in Australia ** ANZ Bank New Zealand, the largest bank in New Zealand ** ...
in 1989) and all three industries progressively deregulated. The selling price of Telecom was considered by some to be extremely low, given that Telecom had a monopoly of all phone lines in New Zealand at the time.


1990s

In 1990, Telecom was sold to two United States-based telecommunications companies, Verizon Communications (formerly Bell Atlantic) and Ameritech, for NZ$4.25 billion. After Telecom was privatized, the Kiwi Share agreement was drawn up, which included a provision that the company retained free local calling for residential customers. In 1991, Telecom listed on the New Zealand, Australian and New York stock exchanges. The following year Telecom implemented a NZ$200 million fibre-optic cable connection between Australia and New Zealand. Also in 1991, Roderick Deane was appointed CEO of the company. Then in 1993 Ameritech and Bell Atlantic reduced their share in Telecom to a combined 49.6% and BellSouth New Zealand Limited ( BellSouth), subsequently acquired by Vodafone, set up the first mobile network to compete with Telecom.
Clear Communications Clear Communications was a telecommunications company based in New Zealand. Until merging into Telstra's operations in 2001, it was the biggest rival to Telecom New Zealand. Background Prior to 1987, New Zealand's telecommunications sector ...
reached an agreement with Telecom in 1995 on local service interconnection. Also in 1995, Telecom created First Media Ltd to develop a cable television network across Auckland and Wellington, called
First TV First TV was the name of a cable television network that was operated in New Zealand's two main North Island cities, Auckland and Wellington by Telecom New Zealand in the 1990s. Trial stage First Media was an owned subsidiary of Telecom NZ. First ...
. In 1996 Telecom established a
telephone exchange A telephone exchange, telephone switch, or central office is a telecommunications system used in the public switched telephone network (PSTN) or in large enterprises. It interconnects telephone subscriber lines or virtual circuits of digital syst ...
in the United States for international traffic, and launched
Xtra Extra or Xtra may refer to: Arts, entertainment and media Film * ''The Extra'' (1962 film), a Mexican film * ''The Extra'' (2005 film), an Australian film Literature * ''Extra'' (newspaper), a Brazilian newspaper * ''Extra!'', an American me ...
, which is New Zealand's largest internet service provider today. 1997 saw Telecom buy back NZ$1 billion of its shares. The following year, Ameritech sold down its 24.8% shareholding in an international public offering, and Bell Atlantic issued exchangeable notes that were convertible into the Telecom shares that it owned. Also in 1998, Southern Cross Cables Limited (half owned by Telecom) announced plans to build a fibre-optic cable linking New Zealand with Australia and North America, and Vodafone New Zealand bought BellSouth and started a campaign to attract Telecom customers to its network. In December 1997 Patricia Reddy was appointed to the Telecom board. She remained on it until 2008. In September 2016 as
Dame Patsy Reddy Dame Patricia Lee Reddy (born 17 May 1954) is a New Zealand lawyer and businesswoman who served as the 21st governor-general of New Zealand from 2016 to 2021. Before becoming governor-general, Reddy was a partner of a law firm, headed a major ...
she became the Governor General of New Zealand. In 1999, Telecom established a presence in Australia, buying 78% of AAPT, Australia's third-largest telecommunications company. Telecom upgraded its nationwide payphone network to smart card technology. Telecom's broadband Internet service based on ADSL technology, called
JetStream Jet streams are fast flowing, narrow, meandering air currents in the atmospheres of some planets, including Earth. On Earth, the main jet streams are located near the altitude of the tropopause and are westerly winds (flowing west to east) ...
, was launched and rolled-out progressively in local exchanges. Also at this time, Telecom began charging customers who connected to the Internet using a local dial up number, forcing all ISPs in New Zealand to change to an 0867 dial up number. This resulted in complaints that this was in breach of Telecom's Kiwishare Agreement where residential customers are allowed free local calling. The decade was rounded off with Theresa Gattung being appointed new CEO of Telecom, with
Rod Deane Sir Roderick Sheldon Deane (born 8 April 1941) is a New Zealand economist, public sector reformer, and businessman. He served as deputy governor of the Reserve Bank of New Zealand, and as CEO and chairman of the country's largest telecommunic ...
moving to the position of chairman.


2000s

In 2000, Xtra signed up its 300,000th customer. Telecom also raised its shareholding in AAPT to 100%. Evidence emerged in early 2002 of Telecom having exploited an ill-considered, or fraudulently made to order, accounting standard (FRS38) to inflate its year 2001 reported profit by some $263m. This standard required holding companies to incorporate profits and losses of associate companies into their group accounts by way of "equity accounting" except when the associate is insolvent. Being insolvent has been wrongly taken as substantial evidence that the holding company will no longer share in the associates profits and losses. The associate company Southern Cross Cables paid Telecom $263m in dividends as per (note 2 of) Telecom's 2001 annual accounts, $US200m as per Southern Cross's annual accounts. Southern Cross opened for (limited) business in November 2000 and its income from operations to 30 June 2001 was only $US13m ($US55m for the 2002 year). Southern Cross were insolvent to the extent of $US24m as at 30 June 2000 and this increased to $US280m as at June 2001 as a result of the dividends and other (net) expenses ($328m in 2002). The dividends were treated as income in Telecom's accounts there being nothing in FRS 28 to say that they should not be although such inclusion did breach an overall requirement that the accounts present a fair view. In 2003, a new logo was launched. In 2004, Telecom purchased Gen-i Ltd (in May) and Computerland Ltd (in September). The company had 36 retail stores around the country. During the year, the company won the
Roger Award The Roger Award For The Worst Transnational Corporation Operating in New Zealand was an annual media campaign run since 1997 by two activist organisations, Campaign Against Foreign Control of Aotearoa and GATT Watchdog. The winners were chosen b ...
for The Worst Transnational Corporation operating in New Zealand. In 2005, Telecom introduced "Bitstream", a 256 kbit ADSL service sold at wholesale prices (at approximately 10% below the retail price) to other ISPs. Telecom also posted a profit of NZ$916 million. The company also launched online retail store Ferrit launches with about 150 retailers. ;2006 * 9 May: An audio clip recorded on 2 March was released involving Telecom CEO Theresa Gattung admitting the use of confusion as a chief marketing tool in the industry. The March recording also dismissed the New Zealand Government as "too smart to do anything dumb" with regards to regulation. * Late May: Roderick Deane resigns as chairman, and is replaced by Wayne Boyd the following month. * July: Matt Crockett is appointed CEO of Telecom's newly formed Wholesale division. * All Computerland branches around New Zealand are rebranded as Gen-i. ;2007 * 16 January: The Librarians Association of New Zealand put in a complaint about a Telecom advertisement where 3 young school children state that, "Only dumb kids read books, brainy kids have broadband." Originally Telecom stated that is the views of the young children and not Telecom and the advertisement was unscripted, later that week Telecom choose to edit the advertisement to remove the comments made by the children. * 19 January: It is reported that Paritai Drive, Ōrākei, one of the richest streets in Auckland, is still not capable of receiving a broadband SL service and there are many other well populated areas around New Zealand still not capable of receiving broadband. Opposition Woosh Wireless immediately tested their service in the area and gave residents the opportunity to join their wireless broadband service. * 5 February: Telecom announces that from March 2007 they will begin rolling out ADSL2+, more than a year after originally stated for roll out. *31 March: Telecom shuts down its old 025 D-AMPS/TDMA network with all 025 phones changed to 027 (CDMA). *May 2007:
British Telecom BT Group plc (trade name, trading as BT and formerly British Telecom) is a British Multinational corporation, multinational telecommunications holding company headquartered in London, England. It has operations in around 180 countries and is th ...
have been in discussion with the New Zealand government regarding Telecom's monopoly control of the NZ broadband network. Three to four years previously, British Telecom were in a similar position to that which NZ Telecom are now in; the British broadband network has since been broken up and the NZ government are keen to learn and possibly copy the development/regulatory/investment model used by the British firm. *The
Auckland Chamber of Commerce Auckland (pronounced ) ( mi, Tāmaki Makaurau) is a large metropolitan city in the North Island of New Zealand. The most populous urban area in the country and the fifth largest city in Oceania, Auckland has an urban population of about It ...
publicly stated that if Telecom did not invest in a next-generation high-speed network, comparable with that of other Western nations, they would fund a private fibre-optic based service in the 100 megabit speed range. The proposed coverage of this would be within 200m of a path running south from Auckland CBD (situated to allow as many businesses as possible to connect). Any company or private individual within this range would be offered a connection. *28 June: Telecom announced that Paul Reynolds, CEO of BT Wholesale, has been selected as the new CEO, to start on 27 September.
Simon Moutter Simon Paul Moutter is a New Zealand engineer and businessman, and was Managing Director of Spark New Zealand from 1 September 2012 to 30 June 2019. Early life Moutter grew up in Palmerston North, New Zealand, He attended Highbury School, Monrad ...
was appointed as acting CEO in the interim. *30 June: Theresa Gattung steps down as CEO, with a reported leaving payment of $5.125 million. *27 September: Dr Paul Reynolds starts as CEO of Telecom. *In November 2007, the Boost Mobile brand was discontinued in New Zealand by Telecom.. *21 November: Mark Ratcliffe, Chief Operating Officer for Technology, is appointed CEO of Telecom's soon-to-be spun off network division. ;2008 *16 January: Telecom announces the formation of Chorus, its new network infrastructure division. *31 March: Telecom officially separates into three divisions (Chorus, Telecom Wholesale, Telecom Retail) *1 April: Russ Houlden, a colleague of Reynolds at BT, is appointed Chief Financial Officer. He replaces Marko Bogoievski, who joined Infratil. ;2009 *12 January: Telecom announces the closure of its online retail store ''Ferrit''. *August: An industrial dispute emerged between Chorus and the Engineering, Printing and Manufacturing Union after servicing contracts in the Auckland and Northland regions are awarded to Australian company Visionstream, which planned to change technicians' employment contracts to a dependent contractor model. In October a new logo was announced.


2010s

;2010 *November: Telecom moves into its newly built world HQ on Victoria St in the Auckland CBD. Costing the developer $280 million, it will consist of 2700 staff and be the largest corporate move in New Zealand history. ;2011 *24 May: Crown Fibre Holdings announced that Telecom had been successful in partnering with the Government to build a fibre network. *9 June: The
National Business Review The ''National Business Review'' (or ''NBR'') is a New Zealand online news publication aimed at the business sector. It has journalists based in Auckland and Wellington. History The ''NBR'' was founded in 1970 by then-23 year old publisher Hen ...
reveals that in OIA documents that the Department of Internal Affairs considered at least one text message sent by Telecom to be in breach of the Unsolicited Electronic Messages Act 2007. *1 December: Telecom divests itself of Chorus, the Network Infrastructure division, in a one for five share deal, with Chorus becoming a separately listed company. ;2013 *9 December: Telecom announces sale of AAPT for A$450 million ;2014 *21 February: Telecom announces a name change to 'Spark', which took effect on 8 August 2014 to better reflect the company's new direction and aspirations. *25 June 2014: Spark announce Lightbox, an online movie and TV show streaming service, in competition with Netflix and SkyTV. Lightbox went live on 27 August 2014. *8 August: Telecom rebrands as Spark. Individual subsidiaries of the company are rebranded to reflect the name change such as Telecom Mobile becomes Spark Mobile, Telecom Foundation becomes Spark Foundation, Gen-i is rebranded as Spark Digital. The company kept the existing Star shaped logo with each division using a different colour for the logo such as silver for Spark New Zealand, orange or pink for Spark Home & Mobile stores, green for Spark Business and purple for Spark Digital. *5–7 September: Spark experiences nationwide outages due to a denial of service attack, which was believed to have largely originated from malware that installed itself onto customers' computers when they clicked on malicious links to celebrity photos leaked in August. ;2015 * 12 August: Spark released a new cloud based consumer service called Morepork, which offers smart home based security services. This enabled consumers to purchase security hardware and services through a monthly subscription for home monitoring linked to their mobile phone. * 7 December: Spark purchased a
South Island The South Island, also officially named , is the larger of the two major islands of New Zealand in surface area, the other being the smaller but more populous North Island. It is bordered to the north by Cook Strait, to the west by the Tasman ...
based IT services firm, Computer Concepts Ltd, for $50million NZD. ;2019 * 14 March: Spark launched its subscription based sports streaming service Spark Sport. The service would compete against Sky Sport (New Zealand) which at the time had a near monopoly on pay TV sports rights in New Zealand. * 19 December: It was announced that Spark would be selling its Lightbox streaming service to the satellite television company Sky Television, which intends to merge Lightbox into its own online streaming service
Neon Neon is a chemical element with the symbol Ne and atomic number 10. It is a noble gas. Neon is a colorless, odorless, inert monatomic gas under standard conditions, with about two-thirds the density of air. It was discovered (along with krypton ...
in 2020. Following the merger, Spark will partner with Sky to make the service available to Spark customers through the telecommunication company's entertainment offers.


Mobile network

Telecom started the first cellular network services using AMPS in 1987. This transitioned to D-AMPS TDMA digital services in the early 1990s. The service in the 800 MHz band gave great geographic coverage and set the bar for service performance for many years. In 1996 Telecom introduced an innovative and first-to-market wireless data cellular network known as CDPD (Cellular Digital Packet Data) that provided IP connections with mobility. Introduced to the market by the product manager, David Beale, they succeeded in the very first iOT-device connections in the region connecting, amongst other things, Coke's vending machines, NZ Post's couriers and parcel tracking, and telemetry data from the Americas Cup yacht races in Auckland to feed a realtime TV graphics service. Telecom Mobile, the mobile division of Telecom, reached 500,000 mobile customers connected to its network in 1998, which doubled to one million customers by 2000. In 2005, a
phreaker Phreaking is a slang term coined to describe the activity of a culture of people who study, experiment with, or explore telecommunication systems, such as equipment and systems connected to public telephone networks. The term ''phreak'' is a ...
named ^god exposed a vulnerability with the mobile network, allowing public access to almost anyone's voicemail; in response to concerns over privacy and security, this network issue was resolved. On 31 March 2007, the 025 D-AMPS ("TDMA") cellular network was closed down. Then on 8 June of that year, Telecom Mobile announced plans to build a hybrid W-CDMA/ UMTS-CDMA 850 MHz network, based on the WCDMA HSPA technology, to eventually replace its current CDMA EV-DO network. On 29 May 2009, Telecom launched its new network, branded as "XT", to the public. In December 2009 and February 2010, Telecom's new
XT Mobile Network The XT Mobile Network is a UMTS and LTE mobile network run by Spark New Zealand (formerly Telecom New Zealand). The network was initially built nationwide on WCDMA/UMTS 850 MHz, with 2100 MHz infill in major urban areas. The UMTS netw ...
experienced high-profile failures for many customers in locations from Taupo south, due to a radio network controller failure in Christchurch. As a result of the loss of service Telecom offered a $5 million compensation package for its customers. In April 2010, Telecom released its first
Android Android may refer to: Science and technology * Android (robot), a humanoid robot or synthetic organism designed to imitate a human * Android (operating system), Google's mobile operating system ** Bugdroid, a Google mascot sometimes referred to ...
handset on the
XT Mobile Network The XT Mobile Network is a UMTS and LTE mobile network run by Spark New Zealand (formerly Telecom New Zealand). The network was initially built nationwide on WCDMA/UMTS 850 MHz, with 2100 MHz infill in major urban areas. The UMTS netw ...
, the
LG GW620 The LG GW620, also known as the LG Eve and the LG InTouch Max, is a smartphone manufactured by LG Electronics. It is the first smartphone from LG that runs the Android operating system. According to LG's managing director in Levant, Kevin Cha, ...
. On 31 July 2012, the Telecom CDMA mobile network was closed down. In September 2013, Telecom officially launched new Ultra Mobile branding and plans. These plans include a free 4G upgrade (4G was made available later in November 2013) with a 1GB of data per day from Telecom WiFi hotspots. In October 2013, Telecom sought clearance to acquire management rights for parts of the 700 MHz spectrum with the intention of aiding in the development of its 4G mobile network.


Industry regulation and company restructuring

In 2000, the
New Zealand Government , background_color = #012169 , image = New Zealand Government wordmark.svg , image_size=250px , date_established = , country = New Zealand , leader_title = Prime Minister Jacinda Ardern , appointed = Governor-General , main_organ = , ...
conducted a comprehensive review of the regulatory regime in the telecommunications industry. Subsequently, in 2001 the Telecommunications Act was passed, which among other things established the role of a Telecommunications Commissioner. In a decision by the Government on 3 May 2006, Telecom was forced to unbundle the local loop, to provide "access to fast, competitively priced
broadband internet In telecommunications, broadband is wide bandwidth data transmission which transports multiple signals at a wide range of frequencies and Internet traffic types, that enables messages to be sent simultaneously, used in fast internet connections. ...
". The decision significantly affected the company's market share, and allowed competitors (such as
TelstraClear TelstraClear Limited was New Zealand's second-largest telecommunications company before being acquired by Vodafone New Zealand in October 2012, previous to which it was a subsidiary of Australian company Telstra. It provided residential line re ...
, Orcon and
Ihug __NOTOC__ ihug was New Zealand's third largest ISP (behind Xtra and TelstraClear), before it was bought, then absorbed by Vodafone New Zealand (the country's largest mobile phone operator). According to 2005 estimates, it had over 100,000 inter ...
) to offer broadband and other communications services throughout New Zealand by installing their own equipment in exchanges. The announcement of this decision was rushed ahead of schedule, as the documents were leaked to Telecom who advised the government of the leak. It was widely reported that the government had intended to make the announcement during the 2006 Budget. Most of Telecom's competitors and many independent commentators such as
InternetNZ InternetNZ (officially Internet New Zealand Inc., formerly the Internet Society of New Zealand) is a not-for-profit open membership organisation and the designated manager for the .nz country code top-level internet domain. It also supports the ...
and Paul Budde applauded the decision, with opposition to unbundling coming from the
Business Roundtable The Business Roundtable (BRT) is a nonprofit lobbyist association based in Washington, D.C. whose members are chief executive officers of major United States companies. Unlike the U.S. Chamber of Commerce, whose members are entire businesses, BRT ...
, Federated Farmers, and Bruce Sheppard (representing Telecom shareholders). Legislation was introduced to enable the regulatory changes. Three other political parties (
New Zealand First New Zealand First ( mi, Aotearoa Tuatahi), commonly abbreviated to NZ First, is a nationalist and populist political party in New Zealand. The party formed in July 1993 following the resignation on 19 March 1993 of its leader and founder, Winst ...
, the
Green Party A green party is a formally organized political party based on the principles of green politics, such as social justice, environmentalism and nonviolence. Greens believe that these issues are inherently related to one another as a foundation ...
and United Future) supported the decision, which would give the government at least 66 votes if there were no votes against the party line. The main opposition National Party initially opposed the unbundling decision, but later voted in favour of it after a select committee hearing. This left the
ACT Party ACT New Zealand, known simply as ACT (), is a Right-wing politics, right-wing, Classical liberalism, classical-liberal List of political parties in New Zealand, political party in New Zealand. According to former party leader Rodney Hide, ACT's ...
alone in opposing the decision. The company was then affected by a series of other government decisions. Firstly, in early-June 2006 the Commerce Commission ruled on the contentious issue of mobile telephone termination charges, announcing that calls between a landline and a mobile phone within a geographically defined boundary could be connected free of termination charges. This ruling allowed Vodafone New Zealand to establish a mobile phone product which could also provide free local calling. Then, the Commerce Commission granted two of Telecom's competitors,
CallPlus CallPlus was a telecommunications company providing phone, calling, internet, mobile and advanced connectivity services to New Zealand businesses. Since 2016, CallPlus has been part of the Vocus Group, which is the third-largest telecommunications ...
and ihug, access to an unrestricted, Unbundled Bitstream Service, which would allow them to provide competitive broadband services. On 27 June 2006, the company announced that it would voluntarily separate its business into two separate operating business units – Wholesale and Retail. The Government introduced the Telecommunications Amendment Bill in November 2006 to force Telecom to open its network to competitors. The bill officially split Telecom into three business units from 31 March 2008, with network access separated from the wholesale and retail units. In January 2012 Telecom launched a new Mobile Network aimed at the youth market named Skinny Mobile On 28 March 2013, Telecom announced that it would reduce staff levels by constraint on recruitment activity and redundancies. This followed from speculation by MP
Clare Curran Clare Elizabeth Curran (born 1960) is a New Zealand former politician who served as a member of the New Zealand Parliament for Dunedin South from 2008 to 2020. She was the Minister of Broadcasting, Communications, and Digital Media and Associate ...
that up to 1500 jobs would be cut from the company.


Spark Broadband

Spark is New Zealand's largest internet service provider. It was formerly named
Xtra Extra or Xtra may refer to: Arts, entertainment and media Film * ''The Extra'' (1962 film), a Mexican film * ''The Extra'' (2005 film), an Australian film Literature * ''Extra'' (newspaper), a Brazilian newspaper * ''Extra!'', an American me ...
. The next largest ISP in the New Zealand market is Vodafone NZ, a position it acquired when it purchased
TelstraClear TelstraClear Limited was New Zealand's second-largest telecommunications company before being acquired by Vodafone New Zealand in October 2012, previous to which it was a subsidiary of Australian company Telstra. It provided residential line re ...
in 2012. Spark offers
asymmetric digital subscriber line Asymmetric digital subscriber line (ADSL) is a type of digital subscriber line (DSL) technology, a data communications technology that enables faster data transmission over copper telephone lines than a conventional voiceband modem can provide. ...
(ADSL), very-high-bit-rate digital subscriber line (VDSL) and fibre to the premises (FTTP) fixed-line broadband. FTTP customers may choose either 30/10 Mbit/s, 100/20 Mbit/s, 200/20 Mbit/s, 200/200 Mbit/s, or in selected areas, 900/400 Mbit/s maximum speed (down/up); ADSL and VDSL customers' download speeds are only limited to what their line and equipment can handle. All three offer both data-capped and unlimited plans. Data-capped customers may choose either to pay extra per GB (or part thereof) over their data cap, or have their speed throttled back to 128 kbit/s at no charge once they exceed the cap. Unlimited plans have no data caps.


Spark Mobile

Spark Ultra Mobile is New Zealand's second-largest mobile operator by market-share, behind Vodafone. Telecom's mobile network was branded as "XT", and operates at 850 MHz nationwide (with some 2100 MHz overlay in urban areas), and delivers 3G data connectivity wherever there is coverage. Telecom originally operated a TDMA ( AMPS, Digital D-AMPS/ TDMA) mobile network; this was superseded by its CDMA network. The TDMA network was turned off on 31 March 2007, and most of its customers migrated to CDMA. The CDMA EV-DO network was marketed as T3G, a 2 MB third-generation mobile system. Telecom announced on 8 June 2007 the intention to build a W-CDMA/ UMTS network, to be called
XT Mobile Network The XT Mobile Network is a UMTS and LTE mobile network run by Spark New Zealand (formerly Telecom New Zealand). The network was initially built nationwide on WCDMA/UMTS 850 MHz, with 2100 MHz infill in major urban areas. The UMTS netw ...
, based on WCDMA HSPA technology, to replace its current CDMA EV-DO network. The network was launched on 29 May 2009. The specifications of XT were chosen to bring it into line with a number of other networks in overseas territories, such as Telstra's Next G (in Australia); furthermore, 850 MHz services can cover greater geographic distances and penetrate buildings more effectively than higher frequencies. The CDMA network ran in parallel with XT until it was shut down on 31 July 2012. The TDMA network used the 025 mobile prefix, using a mixture of six- and seven-digit subscriber numbers. With the switch to CDMA, Telecom migrated to the 027 prefix and standardised the subscriber numbers to seven digits, adding a 4 to the beginning of old six-digit numbers.


Customer numbers and market share

In 2005 Telecom launched New Zealand's first 3G network, using the brand name T3G. Being first into the 3G market, along with aggressive marketing and a $10-per-month text messaging package, Telecom were able to claw back some market share from Vodafone. In November 2005 Telecom reported 72,000 new mobile phone customers, compared to 27,000 for Vodafone. In 2009 the mobile share was further decreased with newcomer
2degrees 2degrees is a New Zealand telecommunications provider. Its mobile network launched on 4 August 2009 after nine years of planning. 2degrees offers prepaid and pay-monthly mobile services as well as fixed-line phone and broadband services. 2degree ...
entering the market; both Vodafone and Telecom lost customers (25,000 and 19,000 respectively), some of which Telecom lost due to its unreliable image after its outages. In response to this, Telecom increased its marketing and improved its plan offerings. The following shows customer numbers and market share information for Telecom Mobile, covering both the now-shut-down TDMA and CDMA networks and Spark's current 3G, 4G, and 5G networks. In November 2015, Spark had 2,200,000 mobile customers at 40% market share.


Spark Sport

Spark Sport is a New Zealand sports streaming service, owned and operated by Spark. The service was launched on 14 March 2019 after Spark obtained the New Zealand broadcast rights to various World Rugby events including the
2019 Rugby World Cup The 2019 Rugby World Cup was the ninth edition of the Rugby World Cup, the quadrennial world championship for men's rugby union teams. It was hosted in Japan from 20 September to 2 November in 12 venues all across the country. The opening match ...
a year earlier. During that time, Spark Sport obtained the rights to several other sports to build its catalog, until the streaming service was ready for launch, coverage was sublicienced to
TVNZ , type = Crown entity , industry = Broadcast television , num_locations = New Zealand , location = Auckland, New Zealand , area_served = Nationally (New Zealand) and some Pacific Island nations such as the Cook Islands, Fiji, and the So ...
to screen. Its first major live sport broadcast was the streaming of the 2019 Australian F1 Grand Prix. In December of 2022, Spark Sport announced that it would be shutting down in July of 2023 due to financial problems. It is thought that the broadcasting rights for all New Zealand Cricket international and domestic games within New Zealand would go to
TVNZ , type = Crown entity , industry = Broadcast television , num_locations = New Zealand , location = Auckland, New Zealand , area_served = Nationally (New Zealand) and some Pacific Island nations such as the Cook Islands, Fiji, and the So ...
. The
Formula 1 Formula One (also known as Formula 1 or F1) is the highest class of international racing for open-wheel single-seater formula racing cars sanctioned by the Fédération Internationale de l'Automobile (FIA). The World Drivers' Championship, ...
is thought to move to Sky TV and Sky Sport There were concerns that Spark's broadcast of the Rugby World Cup would struggle under New Zealand's internet capabilities especially in rural communities and anticipated audience numbers streaming matches resulting in similar issues to Optus Sport's broadcasting FIFA World Cup 2018 in Australia. On the second day of the Rugby World Cup, Spark Sport suffered technical issues during its live stream of the match between New Zealand and South Africa leaving viewers unable to watch the game, as a result broadcast of the second half was simulcast of traditional television on
TVNZ Duke TVNZ Duke ( mi, Te Reo Tātaki Tiuka), formerly Duke and stylized as TVNZ DUKE or DUKE, is a New Zealand television channel run by state broadcaster Television New Zealand. It screens programming targeted at a male audience. It was launched on 20 ...
as part of a contingency plan with free-to-air broadcaster
TVNZ , type = Crown entity , industry = Broadcast television , num_locations = New Zealand , location = Auckland, New Zealand , area_served = Nationally (New Zealand) and some Pacific Island nations such as the Cook Islands, Fiji, and the So ...
for issues during the Rugby World Cup. Viewers would continue to report issues throughout the tournament, despite the issues Spark responded noting that there were no issues from their end in the broadcast feed and that the issues experienced were due to the individual viewer's set up configuration of their streaming devices. Following its broadcast of the 2019 Rugby World Cup, Spark Sport announced it had secured a six-year broadcast deal with New Zealand Cricket for all domestic and international cricket played within New Zealand. The rights had been previously held by Sky Sport for over 25 years. Spark Sport's coverage of cricket is presented by Scotty Stevenson, with regular analysts and commentators including Mark Richardson,
Craig McMillan Craig Douglas McMillan (born 13 September 1976) is a New Zealand cricket coach and former cricketer who played all forms of the game. He was a right-handed batsman and useful right-arm medium pace bowler and played for Canterbury in New Zealan ...
,
Craig Cumming Craig Derek Cumming (born 31 August 1975 in Timaru) is a former New Zealand cricketer. He played for New Zealand in One Day Internationals and Tests. He played domestic cricket with Canterbury and Otago. Domestic career Cumming is a right-hand ...
, Brendon McCullum,
Grant Elliott Grant David Elliott (born 21 March 1979) is a former New Zealand cricketer, who played all formats of the game. Primarily a batting all-rounder, Elliott contributed a man of the match performance to provide entrance to New Zealand's first ever ...
, Stephen Fleming,
Rebecca Rolls Rebecca Jane Rolls (born 22 August 1975) is a New Zealand former cricketer and association footballer who represented New Zealand in both sports. In cricket, she played as a wicket-keeper and right-handed batter, and appeared in 1 Test match, 1 ...
and
Frances Mackay Frances Louise Mackay (born 1 June 1990) is a New Zealand cricketer who currently plays for Canterbury and New Zealand. In January 2019, she was recalled to New Zealand's squad to play in the Women's Twenty20 International (WT20I) series against ...
. American outside broadcast provider Gravity Media provided the equipment to cover Spark's coverage, brought over from Australia, while UK's Whisper TV provided the overall production element. During the 2022/23 season NEP Group was given the outside broadcast contract, which, ironically, bought outside broadcast company On Site Broadcasting (OSB) from Sky in 2020. Spark Sport will be the host broadcaster for the
2021 Rugby World Cup The 2021 Rugby World Cup was the ninth staging of the women's Rugby World Cup, as organised by World Rugby. It was held from 8 October to 12 November 2022 in Auckland and Whangārei, New Zealand. It was originally scheduled to be held in 2021, ...
held in New Zealand. Spark had previously broadcast sport through its subscription video on-demand service Lightbox partnering with Coliseum Sports Media to deliver a subscription-based sports streaming service called Lightbox Sport streaming golf,
English Premier League football The Premier League (legal name: The Football Association Premier League Limited) is the highest level of the men's English football league system. Contested by 20 clubs, it operates on a system of promotion and relegation with the English Foo ...
and
French Top 14 rugby The Top 14 () is a professional rugby union club competition that is played in France. Created in 1892, the Top 14 is at the top of the national league system operated by the French National Rugby League, also known by its French initialism o ...
.


Sports

; Rugby Union * 2019 Men's Rugby World Cup *
2021 Women's Rugby World Cup The 2021 Rugby World Cup was the ninth staging of the women's Rugby World Cup, as organised by World Rugby. It was held from 8 October to 12 November 2022 in Auckland and Whangārei, New Zealand. It was originally scheduled to be held in 2021, ...
*
European Rugby Champions Cup The European Rugby Champions Cup (known as the Heineken Champions Cup for sponsorship reasons) is an annual rugby union tournament organised by European Professional Club Rugby (EPCR). It is the top-tier competition for clubs who compete in a pre ...
; Football * 2024 UEFA Euro * 2022 UEFA Women's Euro * UEFA Nations League * UEFA Champions League * UEFA Europa League * UEFA Europa Conference League * UEFA Super Cup * UEFA Women's Champions League *
2024 Copa America 4 (four) is a number, numeral and digit. It is the natural number following 3 and preceding 5. It is the smallest semiprime and composite number, and is considered unlucky in many East Asian cultures. In mathematics Four is the smallest c ...
* 2022 Copa America Femenina *
Copa Libertadores The CONMEBOL Libertadores, also known as the Copa Libertadores de América ( pt, Copa Libertadores da América), is an annual international club football competition organized by CONMEBOL since 1960. It is the highest level of competition in S ...
*
Copa Sudamericana The CONMEBOL Sudamericana, named as ''Copa Sudamericana'' (; pt, Copa Sul-Americana ), is an annual international club football competition organized by CONMEBOL since 2002. It is the second-most prestigious club competition in South American ...
* Recopa CONMEBOL * CONMEBOL World Cup Qualifying * Women's Super League *
FA Community Shield The Football Association Community Shield (formerly the Charity Shield) is English football's annual match contested at Wembley Stadium between the champions of the previous Premier League season and the holders of the FA Cup. If the Premier Le ...
*
EFL Cup The EFL Cup (referred to historically, and colloquially, as the League Cup), currently known as the Carabao Cup for sponsorship reasons, is an annual knockout competition and major trophy in men's domestic football in England. Organised by the ...
* Women's FA Cup ; Cricket * New Zealand Cricket ** Home internationals **
Men's Super Smash The Men's Super Smash, currently named the Dream11 Super Smash for sponsorship purposes until 2026, is a men's domestic Twenty20 cricket competition in New Zealand. Since the 2018–19 season, the competition runs alongside the Women's Super Sma ...
and
Women's Super Smash The Women's Super Smash, known for sponsorship reasons as the Dream11 Super Smash, is a women's Twenty20 cricket competition organised by New Zealand Cricket. The competition began in 2007–08 and features six teams, who play each other twice ...
**
The Ford Trophy The Ford Trophy is the main domestic List A limited overs cricket competition in New Zealand. Previous sponsor State Insurance did not renew naming rights in 2009, resulting in the competition being renamed the ''New Zealand Cricket one-day c ...
final * England and Wales Cricket Board ** Home internationals **
The Hundred The 100 may refer to: Arts and entertainment * 100 (DC Comics), fictional organized crime groups appearing in DC Comics * ''The 100'' (novel series), a 2013–2016 science fiction novel series written by Kass Morgan * ''The 100'' (TV series), 20 ...
** Vitality Blast ** Royal London One-Day Cup final * Highlights from ICC events. ; Motorsport * Formula One + Junior Series (F2, F3) * World Rally Championship + Other Series (WRC2, WRC3) *
MotoGP Grand Prix motorcycle racing is the premier class of motorcycle road racing events held on road circuits sanctioned by the Fédération Internationale de Motocyclisme (FIM). Independent motorcycle racing events have been held since the start ...
+ Junior Series (Moto2, Moto3) *
DTM DTM may refer to: Sport * Deutsche Tourenwagen Masters, a motor-racing series staged annually in Germany since 2000 * Deutsche Tourenwagen Meisterschaft, a motor-racing championship staged in Germany from 1984 to 1995 Computing * Deterministic T ...
* Porsche Supercup *
World Rallycross Championship The FIA World Rallycross Championship (official abbreviation is World RX) is a rallycross series organised by the FIA in conjunction with series promoter Rallycross Promoter GmbH (founded by Red Bull and KW25). From the inaugural season in 201 ...
* EuroFormula Open Championship *
European Le Mans Series The European Le Mans Series (abbreviated as ELMS) is a European sports car racing endurance series inspired by the 24 Hours of Le Mans race and organized by the Automobile Club de l'Ouest (ACO). The European Le Mans Series is similar to the fo ...
* International GT Open * Toyota Racing Series ; Rugby League *
2021 Men's Rugby League World Cup The 2021 Men's Rugby League World Cup, was the 16th Rugby League World Cup, and one of three major tournaments of the 2021 Rugby League World Cup. The tournament was held in England from 15 October 2022 to 19 November 2022. It was originally du ...
*
2021 Women's Rugby League World Cup The 2021 Women's Rugby League World Cup was the sixth staging of the Women's Rugby League World Cup, and was be one of three major tournaments part of the 2021 Rugby League World Cup. The tournament was held in England from 1 November to 19 Novem ...
*
2021 Wheelchair Rugby League World Cup The 2021 Wheelchair Rugby League World Cup will be held in England from 15 October to 19 November 2022. It was originally planned to be held in November 2021 but was postponed due to the COVID-19 pandemic in England. It will be the first occasion ...
*
2021 Physical Disability Rugby League World Cup The 2021 Physical Disability Rugby League World Cup, also known as the 2021 PDRL World Cup, was the first world cup for physical disability rugby league. The tournament was held from 23 October to 30 October 2022 in Warrington, England, alongside ...
; Hockey * Men's Pro League * Women's Pro League ; Tennis * WTA Tour events excluding events played in New Zealand. ; Other Sports *
Horse racing Horse racing is an equestrian performance sport, typically involving two or more horses ridden by jockeys (or sometimes driven without riders) over a set distance for competition. It is one of the most ancient of all sports, as its basic p ...
via
TAB Trackside TAB Trackside is a New Zealand horse racing and sports broadcast network, incorporating two pay TV channels. The TV channels are available on Sky (New Zealand), Sky channels and the Spark New Zealand#Spark Sport, Spark Sport streaming service. ...
channels * MLB *
NFL The National Football League (NFL) is a professional American football league that consists of 32 teams, divided equally between the American Football Conference (AFC) and the National Football Conference (NFC). The NFL is one of the major ...
*
NBA The National Basketball Association (NBA) is a professional basketball league in North America. The league is composed of 30 teams (29 in the United States and 1 in Canada) and is one of the major professional sports leagues in the United St ...
via NBA TV * UFC pay-per-view events


Criticism

When Telecom held a general monopoly in New Zealand telecommunications, it was criticised for using its incumbent status to charge high prices. Prices have subsequently dropped as competition in the market has increased. Competitors alleged that Telecom engaged in unfair practices to prevent them from gaining ground, for example by reselling broadband capacity to Xtra at lower prices than to other ISPs. In July 2005, two dozen Internet service providers formally complained to New Zealand's Commerce Commission via a letter. Notably absent from the list of signatories were Telecom's ISP, Xtra, and several ISPs owned by its main competitor,
TelstraClear TelstraClear Limited was New Zealand's second-largest telecommunications company before being acquired by Vodafone New Zealand in October 2012, previous to which it was a subsidiary of Australian company Telstra. It provided residential line re ...
. On 1 February 2007 the Consumers' Institute gave its "supreme ass award" for bad products to Telecom for its Xtra broadband service, Consumers Institute executive director David Russell claimed that since Telecom "unleashed" its broadband speeds, the institute had been "inundated with complaints of slower speeds and frustrating cutouts". Telecom has been given the
Roger Award The Roger Award For The Worst Transnational Corporation Operating in New Zealand was an annual media campaign run since 1997 by two activist organisations, Campaign Against Foreign Control of Aotearoa and GATT Watchdog. The winners were chosen b ...
more than once, in 2004 and 2007 – and only the second company awarded as such, with the defunct
TranzRail Tranz Rail, formally Tranz Rail Holdings Limited (New Zealand Rail Limited until 1995), was the main rail operator in New Zealand from 1991 until it was purchased by Toll Holdings in 2003. History The New Zealand railway network was initially ...
being the first. The New Zealand Treasury once estimated the economic loss from Telecom's (now former) monopoly to be in the region of $50–$250 million a year. Another study commissioned in 1998 by competitor Clear (later
TelstraClear TelstraClear Limited was New Zealand's second-largest telecommunications company before being acquired by Vodafone New Zealand in October 2012, previous to which it was a subsidiary of Australian company Telstra. It provided residential line re ...
) estimated that the loss was $400 million a year. At a retail level Telecom now faces competition in all areas — cellular, internet, toll-calls and, subject to ongoing developments, in local calling. At a network level these retail services often resell Telecom wholesale products. Telecom claimed one reason for poor broadband uptake in New Zealand was because of the fact New Zealand residential subscribers enjoy free local calling. Telecom stated "customers have the option of moving to faster broadband services, but free local calling creates a disincentive by allowing them to use dial-up for as long they want" (i.e. they do not have to pay a per-minute call charge while using dial-up, unlike many other countries where local calls are charged for). However, some experts and competitors disagreed – including the secretary of the OECD. Telecom failed to reach their self-imposed goal of around 83,333 wholesale broadband customers by the end of 2005. During her opening address to parliament, Prime Minister Helen Clark criticised the state of the internet in New Zealand. This was followed by extensive criticism in the media such as in two high-profile television programmes, in two episodes of '' Campbell Live'' (whose past major sponsors include Telecom), during which CEO Theresa Gattung was challenged by host John Campbell, and an episode of the New Zealand edition of ''
Sunday Sunday is the day of the week between Saturday and Monday. In most Western countries, Sunday is a day of rest and a part of the weekend. It is often considered the first day of the week. For most observant adherents of Christianity, Sunday ...
''. Critical articles had been published by various magazines and newspapers, including the largest newspaper, '' The New Zealand Herald''. Of significance, many of these were lengthy and high-profile articles compared to many previous articles critical of Telecom — among the most noticeable of these was published by the ''
National Business Review The ''National Business Review'' (or ''NBR'') is a New Zealand online news publication aimed at the business sector. It has journalists based in Auckland and Wellington. History The ''NBR'' was founded in 1970 by then-23 year old publisher Hen ...
'', in which it was stated that "Far from being 'Xtraordinary', as its multimillion dollar advertising would have you believe, Telecom is strangling the nation's advancement." While in Wellington for an
ICANN The Internet Corporation for Assigned Names and Numbers (ICANN ) is an American multistakeholder group and nonprofit organization responsible for coordinating the maintenance and procedures of several databases related to the namespaces ...
meeting, Vint Cerf was reported to have made a personal visit to
David Cunliffe David Richard Cunliffe (born 30 April 1963) is a New Zealand management consultant and former politician who was Leader of the New Zealand Labour Party and Leader of the Opposition from September 2013 to September 2014. He was Member of Parli ...
, the telecommunications minister where it is believed he recommended that Telecom be unbundled. The government investigated whether it needed to force Telecom to unbundle the network, thereby allowing other companies access and improving broadband service for consumers. From 2007, Yahoo! provided Telecom's email service, which came under heavy criticism in early 2013 following a spam and phishing attack described as the biggest to have ever hit the country. Telecom and Yahoo! automatically reset tens of thousands of users' passwords. In April, Telecom announced that despite the issue, it would keep Yahoo! on as an email provider. Problems with Telecom's YahooXtra email continued into December 2013 and further into 2014 with the latest problems reported on 10 January. They later moved their mail service to SMX, a New Zealand-based provider, in May 2017.


References


External links

* * Spark Foundation {{Retailers in New Zealand Companies based in Auckland Telecommunications companies established in 1987 Companies listed on the New Zealand Exchange Mobile phone companies of New Zealand Privatisation in New Zealand Telecommunications companies of New Zealand Companies listed on the Australian Securities Exchange New Zealand companies established in 1987 Consumer electronics retailers of New Zealand