Tū Ātea warns One NZ–2degrees RanCo could block Māori spectrum from networks

Tū Ātea, a Māori-owned telco, has told the Commerce Commission that the planned One NZ–2degrees radio access network joint venture, RanCo, could become a gatekeeper that makes it harder for Māori spectrum to reach mobile networks. The company holds commercial 4G and 5G spectrum but depends on mobile network operators to carry its services.

Under the current arrangement, Tū Ātea said in its submission, a service agreed with either 2degrees or One NZ can be put in place on that operator's own network. With RanCo in the picture, it said, the new company would have to carry out the work, which raises the questions of who decides and who knows. Tū Ātea told the Commission that this would let RanCo veto hosting requests from third parties or expose confidential wholesale customer plans. It said Māori spectrum holdings, which are due to grow under Crown commitments, risk being sidelined.

Tū Ātea also argues that the venture threatens its infrastructure business. Its Network Services arm, formerly Broadtech, is the main strategic build partner for tower company Fortysouth and also works for Connexa. Tū Ātea says RanCo's purpose of merging overlapping equipment and removing duplicate infrastructure will mean fewer new cell sites nationwide, and that the lost construction revenue could undermine funding for workforce programmes that train Māori in technical roles.

SafetyNet, the Crown agency responsible for emergency service communications, wants the Commission to make sure the joint venture does not compromise public safety networks. One NZ runs the back-end cellular services for emergency services through the Public Safety Network, and SafetyNet fears that handing radio network control to RanCo could let 2degrees delay or veto upgrades needed for public safety. SafetyNet asks the regulator to seek firm assurances that public safety requirements will not face "unreasonable delay, cost or constraint" because 2degrees does not share them. It also warns that putting around 60 per cent of New Zealand's mobile connections on common electronics and baseband software creates a single point of failure in disasters or cyber incidents, although it does not oppose the deal on competition grounds.

The Technology Users Association of New Zealand (Tuanz) warns that a 50/50 joint venture creates hold-up risks for business connectivity, for example if 2degrees vetoes capital spending that One NZ wants for an enterprise feature. It suggests a compromise like Australia's, with shared radio gear only in rural areas and separate competing networks in major cities.

Securing such guarantees may be difficult because Section 66 of the Commerce Act 1986 stops the Commission issuing a conditional clearance tied to ongoing operational promises, leaving it only to clear or decline. If it has preliminary competition concerns it issues a Statement of Issues, and the onus then falls on One NZ and 2degrees to offer structural carve-outs or risk rejection.