New Zealand operator 2degrees has purchased internet service provider Snap, and plans to launch fixed-mobile services for consumers and enterprise customers this year.

Stewart Sherriff, 2degrees CEO, said the two companies have had a selling partnership arrangement for the past two years and the purchase is a logical move beyond that as it aims to accelerate its growth as a full service provider.

“Snap provides the perfect complement to our mobile offering and will allow us to deliver the total package that our customers have been asking for,” said Sherriff.

Snap CEO Mark Petrie will join the 2degrees leadership team and lead its fixed services division.

2degrees is the country’s third largest mobile player with 1.3 million connections and a 23 per cent market share, behind leader Vodafone (40 per cent) and Spark (37 per cent).

The 2degrees workforce will expand to 900 staff, with Snap’s 120 staff joined by the 2degrees team in Christchurch at Snap’s office. Snap’s Auckland-based sales staff will move to 2degrees’ Newmarket office.

Sherriff says there will be no immediate change for customers, with the integration of back-office systems to take place over time and in a way that minimises the impact on them.