Telco vet happy with underdog status

John Stanton. Photo / Supplied

Mobile telecommunications veteran John Stanton is not fazed with coming into the market as the underdog.

The chairman of Trilogy International, the major shareholder of new mobile player 2degrees, has been warned many times in his 30-year career not to bother offering mobile services to customers who already have a choice of two or three networks.

Stanton's experience in the wireless industry dates back to 1979 - two months after graduating from university - when the US Government developed the rules to create the wireless industry.

"I was able to participate on the ground floor, the foundation level of creating this new industry," said Stanton.

Since then he has been involved in establishing mobile networks in the US and around the world in places as diverse as Ireland, Ghana, Latvia and Bolivia.

"We've always been involved with businesses that are the new entrants. We've always been the David to the telephone company Goliath," said Stanton.

Stanton said there were three simple rules for doing business in telecommunications.

Building a first class system and providing an outstanding product was number one. The second rule was providing the best value for customers and third was to love the customer, he said.

Stanton said one of the key lessons he has learned in the the telecommunications industry is that competition makes every one of the mobile companies in the market better.

"Competition represents an opportunity to provide lower prices, better innovation, more investment. I don't mean by us, I mean by everyone," said Stanton.

He said 2degrees had to innovate to survive and could not get by copying services on offer from competitors.

Stanton founded venture capital firm Trilogy Equity Partner in late 2005 with his wife Theresa Gillespie and colleague Brad Horwitz using cash from the sale of US mobile company Western Wireless.

Through Trilogy International the trio have invested in networks in Haiti, Dominican Republic, Bolivia and New Zealand.

Stanton has dropped off the Forbes rich list, but in 2007 he came in at 840th on the list and was estimated to be worth more than a billion dollars.

His visit coincides with news that Maori investor Hautaki risks having its 20 per cent stake diluted to 13 per cent after being unable to raise $20 million last year to invest in the firm.

Stanton said it was important for Trilogy to have local partners.

"We are very happy with the ownership level we have got. We would be willing to invest more capital but it's important to maintain that balance as best we can of local partners as well as a strong balance sheet."