Vodafone signs new mobile deals

Vodafone New Zealand has signed new wholesale deals with Orcon Internet, Compass Communications and Melbourne-based M2 Telecommunications Group.

The deal means the three companies could enter the mobile market by reselling Vodafone's wholesale services.

Vodafone had been inundated with requests for wholesale deals from internet service providers, said Tom Chignell, Vodafone New Zealand's general manager of commercial development.

"We have signed up over 200 reseller deals in the mobile data space."

Vodafone's deal with M2 would enable the company - which is providing fixed line services - to further establish its foothold in the local market.

Ernie Newman, chief executive of the Telecommunication Users Association, said Orcon, Compass and M2 plans for a mobile phone service using the Vodafone network would add some much-needed competition in the market and be welcomed warmly by users.

"New Zealand mobile phone prices, including calls from fixed to mobile phones, are among the world's most expensive.

"The reason seems to lie in the limited competition here.

"Most countries our size have several mobile networks as well as a range of virtual operators who run services across networks owned by others, but until now the market has essentially been a duopoly."

IDC analyst Chris Loh said ISPs had wanted to expand their services for a long time.