Spark, Vodafone & 2degrees submit joint proposal to NZ

Company News

by David Chau

Kiwi telcos Spark New Zealand (ASX:SPK), Vodafone and 2degrees have submitted a joint proposal to the New Zealand government to improve rural broadband and mobile infrastructure.

They announced their plan is to deliver high speed broadband and mobile infrastructure via the government’s Rural Broadband Initiative Extension and Mobile Black Spot Fund.

If the government accepts the proposal, the three companies will invest hundreds of millions of dollars over the life of the project. This includes a $75 million capital contribution to establish the infrastructure.

According to three telcos, existing mobile networks cover over 90% of the areas where New Zealanders live and work – though there are still remote areas of the country without mobile coverage. Also, they expect this proposal will see 500 new cell sites being delivered, and a 25% increase in land coverage across New Zealand.

Yesterday, Spark New Zealand shares closed 3.46% higher at $3.29.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.