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News : 2degrees Buys Telco Snap in Step Towards Full Service
Christchurch, NZ, March 23, 2015 -- 2degrees has purchased smaller telco Snap, and added of home phone lines and home broadband to its mobile service.
2degrees first announced it planned to move into the fixed-line market in August 2012.
The two will combine under the 2degrees brand, delivering broadband and mobile service to consumers, businesses and enterprise customers nationally.
Christchurch's Mark Petrie will join the 2degrees senior leadership team and lead the fixed services division within 2degrees.
Petrie started on work experience with Snap in 1999 and eventually bought out the other shareholders to take full ownership of the company in December 2011.
The company evolved from the 2004 merger of smaller internet service providers including Dunedin-based Cave Rock Internet, iNet Company and NetAccess Internet.
While Snap has had a national focus, about 115 of its staff are based at headquarters in Lincoln Rd, Addington.
The company also employs sales staff in Auckland, and has another employee in Dunedin.
Petrie is still in his mid-30s and as chief executive has in the last few years been working to widen Snap's employee base and expertise. For example, Snap has a large call centre team based in Christchurch to answer queries from customers who take on its offerings.
2degrees said the purchase brings together its mobile solutions with a broadband internet service provider at a time when Kiwis were embracing data intensive mobile solutions and moving to new ultrafast broadband (UFB) fibre services.
2degrees chief executive Stewart Sherriff said the two companies had enjoyed a selling partnership arrangement for the past two years and the purchase was a logical and comfortable move for both.
"Snap provides the perfect complement to our mobile offering and will allow us to deliver the total package that our customers – and theirs – have been asking for," Sherriff said.
Petrie said the deal would help Snap deliver on its potential.
"One thing we've learned in the last couple of years, apart from the fact that we work well with 2degrees, is that there is a limited window of opportunity to win business as the UFB networks are rolled out.
"Fixed-mobile offer allows us to put our best foot forward."
The 2degrees workforce will expand to 900 staff, with Snap's 120 staff joined by the 2degrees team in Christchurch at Snap's office.
Snap's Auckland-based sales staff will move to 2degrees' Newmarket office.
2degrees has a 50-strong national store network.
Posted by Veronica Silva Cusi, news correspondent
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Published: Tuesday, March 24, 2015