Vocus chief executive Mark Callander says the acquistion will shakeup the sector. Photo / Getty Images
Vocus chief executive Mark Callander says the acquistion will shakeup the sector. Photo / Getty Images
Tired of paying individual household bills? This could be a game changer.
Vocus New Zealand has today taken ownership of Switch Utilities, making it the first telco to acquire an electricity company.
Electricity provider Switch will continue to operate under its current structure, with energy plans set to be offered through Vocus brands - starting with Slingshot.
Vocus chief executive Mark Callander said Slingshot would offer customers broadband, landline, mobile, gas and electricity - on the same bill, in the new year.
The internet and power packages would also be rolled out to Orcon and Flip customers at a later stage, Callander said.
"The first few months in the new year is always a busy time for telco and energy as Kiwis reconsider their providers. We hope Slingshot's new offering will be an incentive to switch," he said.
"We're confident that this is a strong step in the right direction for the business and we're excited to see the response from Kiwis."
Vocus has 200,000 customers and Slingshot close to 130,000.
Switch Utilities chief executive Nick Yates said the acquisition was a natural fit.
"While we're a relatively small player, but excited to become a part of such a reputable company with the similar values and a focus on strong customer service and excellent products," Yates said.
"With Vocus, we will naturally expand our customer base into the consumer segment and are confident our customers will value the growth of our offering."
Switch currently supplies energy packages to businesses and households, with a focus on apartments, schools and sports grounds.
Callander said he saw huge potential for bundle services within the New Zealand market.
"We pride ourselves on being a challenger brand in the telco market.
We're confident that this is a strong step in the right direction for the business and we're excited to see the response from Kiwis.
"We will bring that same ethos to the energy market, shaking up the current offering for Kiwis. We are flexible, competitive and with the great team at Switch, we're in a strong position to offer Kiwis a one-stop-shop for their household connections," he said.
Vocus New Zealand owns other brands including Slingshot, Orcon and Flip.
New Zealand's energy market is worth $6 billion and the telecommunications market more than $5 billion.
"We think we'll be reasonably successful based on how we have bundled and positioned the products," he said. "We're a challenger - it's in our DNA - and we'll seek to carve out our niche and our market as we have done in the telco market."
Vocus will next year create a "centralised contact centre" for customers power and broadband needs. Pricing plans for the bundle packages will be announced next year, he said.
Customers will be able to switch provides by calling into a contact centre, online, and through a mobile app.
