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Spark New Zealand - Company Overview

Spark New Zealand - Company Overview

Formerly Telecom Corporation of New Zealand before being rebranded as Spark New Zealand in August 2014, the company is New Zealand's largest telecommunications services company. The company provides a full range of internet, broadband data, voice, mobile, fixed-line calling and wholesale services for customers across New Zealand.

Since its operational separation in 2008, Chorus, (now a separate public-listed company on the NZX and covered in a separate report at:, the business unit responsible for operating the Spark NZ network, has made significant progress towards improving the company's services to the benefit of both end-users, Spark and other industry businesses.

Previously the company passed through a transformational period in response to changing industry regulations and the announcement in 2009 of public funding for a national fibre network (the Ultra-Fast Broadband network UFB). After the company submitted several variations to allow operational separation in relation to the UFB, it eventually demerged in late 2011.

The progress in the UFB rollout will see Spark move forward in its strategies for growth for several years through to at least 2015 as the UFB rollout develops. Recent changes to its company facing product ranges aimed at increasing its overall customer base include LTE commercial launches, the introduction of free WiFi hotspots, reduced mobile calling rates and flat-rate roaming data charges.

This report provides an overview of Spark's strategic approach, products and services, business structure, network and subsidiaries. It also provides an overview of the company together with analysis on operational facts and figures.

Key developments:

Telecom rebrands as Spark NZ; Spark and Vocus Communications create Connect 8 as fibre network construction company; Spark cancels resale agreement offering bundles with Sky TV; fixed-broadband, ARPU, WCDMA, CDMA closure, 4G LTE trials, WiFi hotspots, data-roaming reductions may reduce bill-shock, spectrum renewal, UFB, FttP; Spark sells AAPT to TPG for A$450 million; financial and operating updates for FY2014.

Companies covered in this report include:

Spark New Zealand, Chorus, AAPT, Spark Digital (formerly Gen-i), Crown Fibre Holdings, Telecom Cook Islands, Spark Home, Mobile and Business, Vodafone, 2degrees.

1. Synopsis
2. Company information
2.1 Company overview
2.2 Background information on the demerger of Chorus and assets
2.3 Recent developments free WiFi, 4G, data roaming reduced
2.4 Rebranding
3. Operations statistical information
3.1 Fixed lines
4. Company divisions
4.1 Spark and Spark Business
4.2 International
4.3 Connect
4.4 Technology & Shared Services (T&SS)
4.5 AAPT
4.6 Spark Digital
4.6.1 Overview
4.6.2 Managed services
4.7 Mobile network
4.7.1 Overview
4.7.2 CDMA network closed down
4.7.3 4G/LTE network
4.7.4 Mobile ARPU statistics
4.8 International fibre optic cables
4.9 International data network
4.10 Satellite services
5. Products and services
5.1 Spark
5.1.1 Services
5.1.2 Bundled users
5.2 Wholesale
5.2.1 Overview
5.3 Mobile services
5.4 Online and digital media
5.5 Payphones
6. Subsidiary and associate companies
6.1 Overview
6.2 Spark Joint Venture with Vocus
7. Environmental developments
7.1 Environmental and sustainable practices
7.2 Mobile phone recycling
8. Company history
8.1 Brief timeline 1987 - 2014
9. Related reports
Table 1 Fixed lines in operation by division 2008 - 2014
Table 2 Annual change in fixed lines by division 2009 - 2014
Table 3 Spark Digital revenue by type -line subscribers by type 2010 - 2014
Table 4 Spark Digital fixed-line subscribers by type 2011 - 2014
Table 5 Spark mobile monthly ARPU pre/postpaid voice and data 2009 - 2014
Table 6 Annual change in monthly ARPU by market sector 2010 - 2014
Table 7 Spark fixed lines and market share 2010 - 2014
Table 8 Environmental KPIs 2009 - 2014
Chart 1 Overview of fixed lines in operation by division 2008 - 2014
Chart 2 Spark Digital revenue by type -line subscribers by type 2010 2014
Chart 3 Overview of Spark pre/postpaid voice, data mobile monthly ARPU 2009 - 2014
Exhibit 1 Spark New Zealand at a glance including key highlights
Exhibit 2 Spark's five-year strategic plan historic overview
Exhibit 3 Overview of the operational separation strategy
Exhibit 4 Overview of Spark New Zealand initial demerger details
Exhibit 5 The Internet Protocol/Multiprotocol Label switched network
Exhibit 6 Overview of the AAPT network
Exhibit 7 AAPT PowerTel historical background information
Exhibit 8 Background information on the Unbundled Bitstream Access (UBA) service
Exhibit 9 Overview of subsidiary companies 2014
Exhibit 10 Overview of associate companies 2014

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