2degrees to reveal future of its business

2Degrees is our third biggest telco - and may soon be on the NZ and Australian Stock Exchanges.

Mobile brand 2Degrees has called a media briefing today to "announce a major development regarding the future of the business."

2Degrees declined to offer any more detail but some industry sources have predicted a reappraisal of its ownership structure.

It is not clear if that would relate to a new investor or consolidation by one existing shareholder.

The company also expected to reveal a new broadband offering that would help it to compete with packages from Spark and Vodafone.

2degrees began in 2009 and broke the duopoly of Telecom and Vodafone.
In January three directors resigned from Communications Venture Partners (CVP) - a European based investment company with a 27 per cent stake in 2degrees - amid questions about its ability for growth.

Directors Andy Scott, Claudia Mayr-Dobin and former chief executive Mike Reynolds ceased as directors effective 20 January 2015.

Forsyth Barr analyst Blair Galpin said that in the current market a new player would bring added capabilities to the firm.

In mid-2014 there was speculation that Indonesia's largest telecommunications firm, PT
Telkom, might buy a minority stake in 2degrees but that interest came to nothing.

Other names mentioned as potential investors include Virgin Mobile - which has a strong branding focus - and Digicel which has its base in small island markets in the Pacific Islands in the Caribbean.