New Zealand finally gained a third operator today, with the long-awaited official launch of 2degrees. The new company aims to provide GSM and WCDMA/HSPA technology to 97 percent of New Zealanders and will cut prices to challenge the sector’s two dominant players (Vodafone and Telecom New Zealand), announcing today what it claims are “formidably low market rates with no contractual commitment.” In particular, 2degrees says it offers a no contract ‘Pay Now’ service with call and text rates half the headline price that Vodafone and Telecom offer their prepay customers, valid anytime. “The 2degrees no contract Pay Now service means that there’s no more deciphering complicated plans, no commitment to a minimum spend, no need to pay for airtime never used, and no contracts,” said CEO Eric Hertz.

2degrees – formerly known as NZ Communications and, before that, Econet Wireless – was granted a mobile license in 2001 when it formed an alliance with the Hautaki Charitable Trust which was allocated a 3G license at a discount price by the regulator. Today’s launch was initially expected last October but reportedly suffered delays due to problems with striking co-location deals with its rivals for the installation of network equipment. However, a recent statement said the operator “has committed over NZD250 million (US$151 million) and is building a 2G and 3G network that is HSPA+ capable.” China’s Huawei is the network equipment supplier. The operator has also signed a national roaming agreement with Vodafone for areas where it does not have its own mobile network coverage. New Zealand’s mobile market is currently a duopoly, with market-leader Vodafone controlling 52 percent market share. Total mobile subscriber count in the country stands at 4.8 million, according to Wireless Intelligence. Although WCDMA only accounts for 27 percent of connections, recent aggressive expansion plans from Telecom NZ and Vodafone (as well as the new launch of 2degrees) look set to make the country a hotbed of future mobile broadband activity. MVNOs are also set for imminent launch, including TelstraClear.