ComCom warns 2degrees over satellite marketing

Now it's 2degrees in the LEO promises naughty seat

The Commerce Commission has warned 2degrees that its May 2023 “No Giant Wait” advertising campaign may have breached the Fair Trading Act. The advertising claimed the telco would be able to offer customers “satellite coverage launching this year, not next”.

Small print at the bottom of the advertisement says: “Text coverage for 100% of New Zealand will be available this year with a direct satellite line of sight.”

The advertising referred to services 2degrees planned to offer using the Lynk low-Earth orbit satellite network.

False, misleading, unsubstantiated

A letter published on the Commerce Commission website says it investigated claims made in the advertisement that may be false, misleading or unsubstantiated. For now, the Commission has issued a warning although criminal proceedings remain an option. If that were to happen, the telco could be fined up to $600,000 for each offence.

In November 2024, the Commission issued criminal proceedings against One New Zealand for claims it made about satellite services.

The Commerce Commission’s investigation found the claim was unsubstantiated because “no testing of Lynk’s satellites had been carried out in New Zealand at the time the representations were made”.

It points out the qualifying information was in “extremely small print and not sufficiently prominent or proximate to correct the impression created by the headline representation”.

Lynk's slipped launch schedule

The letter notes that Lynk’s launch schedule had slipped by the time the advertising appeared and that 2degrees understood the unpredictability of satellite programmes.

It goes on to point out that by March 2025, almost two years after the marketing campaign, 2degrees still could not offer customers a satellite to mobile service.

In April, the Commerce Commission wrote to 2degrees about the matter. @degrees responded saying it accepts the findings.

Tait makes bid for Vital

Christchurch’s Tait International has Vital Ltd in its takeover sights. The company’s chair, John McMahon, issued a notice through the NZX of an offer to buy all Vital’s shares for 45 cents per share. In a separate media release, Tait says the price is a:

“...64% premium to the price of $0.275 per VTL share immediately prior to the trading halt being announced on 26 May 2025”.

Tait Communications CEO Yoram Benit says: “The proposed takeover is a strategic move to expand our market positioning, product offerings and reach in New Zealand.”

Vital is the NZX-listed telco formed when TeamTalk and CityLink combined and rebranded in 2019. It was the subject of a failed takeover attempt last year by Empire Technology.

That process ended badly with the Takeovers Panel ordering Empire to pay for the failed takeover although the company’s owner plans an appeal. Spark also attempted a takeover of the business around eight years ago.

TCF code aims to shield vulnerable customers

A new code published by the Telecommunications Forum aims to improve protections for customers who rely on fixed-line services for health, safety or disability reasons.

The TCF says its Vulnerable Consumer Code is a voluntary industry-led initiative. It “...sets out clear obligations for retail service providers (RSPs) and network operators to ensure that registered consumers—those with verified needs—receive priority support in the provision, maintenance, and repair of essential fixed-line services.”

The code covers services delivered over copper, fibre, fixed wireless and hybrid fibre-coaxial. It also covers satellite networks.

While Starlink, the most-used satellite service in New Zealand, is not a TCF member, a number of TCF members resell Starlink and other satellite services.

While there are already a series of consumer protections in place, in some cases backed by legislation, the TCF’s goal is to add consistency.

Spark recycles laptops for school digital inclusion

Spark is working with Quadrant on a laptop lease programme which will see hundreds of mobile computers donated to school students. The pair say 400 laptops have already been distributed to schools in South Auckland and Wellington.

Quadrent has bought more than 3,000 laptops from Spark, which will be resold to fund the purchase of 800 new laptops for school students.

Spark corporate relations and sustainability director Leela Ashford says the programme helps reduce electronic waste.

At the same time, she makes a connection between the Quadrent Green Lease laptop programme and Skinny Jump. This is Spark’s subsidised internet access programme, used by 33,000 homes.

Xero debuts small business iPhone payments

Xero says it now allows small businesses using Apple iPhones to handle instant contactless payments. The new feature means businesses can accept payments from credit and debit cards, Apple Pay and from digital wallets. Xero customers need an account with the Stripe payment service to use Tap to Pay on iPhone.

In other news...

Morrison pockets $456m in fees as Infratil makes net loss of $261.3m
Chris Keall takes a wider look at recent financial reporting by Infratil, the owner of One NZ. He reveals One NZ’s revenue fell from $1.996b to $1.921b, but the company’s guidance shows performance is expected to tick up over the current year.

‌Homes gates, security systems affected by 3G shutdown
The TDF’s Paul Brislen talked about the practicalities of closing the 3G phone network at last week’s Tuanz Connecting Aotearoa Summit. At least two other speakers touched on potential problems the shutdown would cause for people in rural New Zealand.

At the RNZ site, Susan Edmunds writes about a nasty consumer aspect of the shutdown. Last year a Christchurch woman was sold an automatic gate controlled by 3G. This year she was told it won’t work after the 3G network closes later this year.

Meridian completes NZ's first grid-scale battery, eyes solar expansion
At Interest, Juha Saarinen writes about an important development for renewable energy.

“Meridian Energy has officially opened New Zealand's first large-scale grid battery storage system at Ruakākā, the first of its kind, and a milestone in the country's renewable energy infrastructure development.”