2degrees – New Zealand’s newly-launched third mobile network – has switched on 3G services amid reports that the company is becoming a major threat to incumbents Telecom New Zealand and Vodafone. Using kit supplied by Huawei, 2degrees has launched 3G networks, averaging speeds of 800 kb/s to 1.4 Mb/s. Customers can connect to the 3G network via handsets or USB modems and data is available in 50MB, 512MB, 2GB or 10GB packs, with validity periods ranging from 30 to 90 days. 2degrees claims to be the first operator in New Zealand to allow users to keep unused data beyond 30 days.

Formerly known as NZ Communications, 2degrees launched GSM services in August 2009, almost a year later than originally planned. However, as a recent analysis report showed, it quickly made an impact with a low-cost prepaid strategy that significantly undercut its larger rivals. According to Wireless Intelligence, 2 degrees added 105,000 connections in the second quarter, compared to Vodafone’s loss of 25,000 and Telecom NZ’s gain of just 1,800. 2degrees has a market share of around 7 percent, or 365,000 connections.