Spark New Zealand#Spark Sport

{{short description|Telecommunications company in New Zealand}}

{{Multiple issues|

{{Advert|date=November 2019}}

{{More citations needed|date=November 2019}}

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{{Use New Zealand English|date=January 2013}}

{{Use dmy dates|date=February 2023}}

{{Infobox company

| name = Spark New Zealand Limited

| logo = Spark New Zealand logo.svg

| type = Public

| traded_as = {{unbulleted list|{{NZX|SPK}}|{{ASX|SPK}}}}

| genre =

| fate =

| predecessor = New Zealand Post Office

| successor =

| foundation = {{Start date and age|1 April 1987|df=yes}}

| former_name = Telecom New Zealand

| founder =

| defunct =

| location_city =

| location_country =

| location = Auckland, New Zealand

| locations =

| area_served = New Zealand

| key_people = {{unbulleted list|Justine Smyth, Chair{{cite web|url=http://www.spark.co.nz/online/about/our-company/leadership|title=Company Leadership}}|Jolie Hodson, Chief Executive|Stefan Knight, Finance Director|Grant McBeath, Customer Director|Mark Beder, Technology Director|Matt Bain, Marketing Director|Heather Polglase, HR Director|Melissa Anastasiou, General Counsel|Tessa Tierney, Product Director}}

| industry = Telecommunications

| products =

| services = {{unbulleted list|Fixed telephony|Mobile telephony|Internet access|Leased lines|Data transmission|ICT services|Streaming video on demand|Home automation}}

| revenue = {{decrease}} NZ$3,861,000,000 (2024){{cite web|title=Spark Annual Report 2024|url=https://investors.sparknz.co.nz/FormBuilder/_Resource/_module/gXbeer80tkeL4nEaF-kwFA/2024_Spark_Annual_Report_FINAL_LR.pdf|website=Spark Investor Centre|access-date=4 September 2024}}

| operating_income = {{decrease}} NZ$1,163,000,000 (2024)

| net_income = {{decrease}} NZ$316,000,000 (2024)

| aum =

| assets = NZ$1,070,000,000 (2024)

| equity = NZ$1,590,000,000 (2024)

| owner =

| num_employees = 5,291 (2024)

| parent =

| divisions = {{unbulleted list|Spark Home, Mobile and Business|Spark Wholesale|Spark Digital|Spark Ventures|Spark Connect|Spark Foundation|Skinny Mobile}}

| subsid =

| homepage = {{URL|http://spark.co.nz}}

| footnotes =

}}

Spark New Zealand Limited is a New Zealand telecommunications and digital services company providing fixed-line telephone services, mobile phone services, broadband, and digital technology services (including cloud, security, digital transformation, and managed services). Its customers range from consumers to small - medium business, government agencies and large enterprise clients. It was formerly known as Telecom New Zealand until it was rebranded to Spark on 8 August 2014.{{cite news |last=Edward |first=Swift |date=21 February 2014 |title=Telecom rebranding to become Spark |url=http://www.newstalkzb.co.nz/auckland/news/nbbus/1002828409-telecom-rebranding-to-become-spark |access-date=21 February 2014 |newspaper=Newstalk ZB}} It has operated as a publicly traded company since 1990. Spark's mobile network reaches 98% of New Zealand, with over 2.7 million mobile connections and 687,000 broadband connections{{cite web |last=NZ |first=Spark |date=September 2024 |title=Spark NZ Annual Report 2024 |url=https://investors.sparknz.co.nz/FormBuilder/_Resource/_module/gXbeer80tkeL4nEaF-kwFA/2024_Spark_Annual_Report_FINAL_LR.pdf |access-date=4 September 2024 |website=Spark NZ}}

Spark is one of the largest companies by value on the New Zealand Exchange (NZX). As of 2007, it was the 39th largest telecommunications company in the OECD.{{cite news|url=http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10452483|title=NZ's wealthy telcos stingy on investment|date=19 July 2007|first1=Peter|last1=Griffin|first2=Helen|last2=Twose|work=The New Zealand Herald }} The company is part of New Zealand Telecommunications Forum.

Telecom New Zealand was formed in 1987 from a division of the New Zealand Post Office, and privatised in 1990. In 2008, Telecom was operationally separated into three divisions under local loop unbundling initiatives by central government – Telecom Retail; Telecom Wholesale; and Chorus, the network infrastructure division. This separation effectively ended any remnants of monopoly that Telecom Retail once had in the market. In 2011 the demerger process was complete, with Telecom and Chorus becoming separate listed companies.{{cite news |url= http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10769994 |title= Plenty of pomp as Chorus and Telecom part |first= Hamish |last= Fletcher |work= The New Zealand Herald|date= 1 December 2011 |access-date=25 January 2012}}

Spark has 63 retail locations around New Zealand, including 16 in Auckland.{{cite web |title=Spark |url=https://www.spark.co.nz |website=spark.co.nz |publisher=Spark New Zealand}}

History

The Postal Services Act 1987 split the then New Zealand Post Office into New Zealand Post Limited (trading as NZPost), Telecom Corporation of New Zealand Limited (trading as Telecom) and Post Office Bank Limited (trading as PostBank, sold to ANZ in 1989) and all three industries progressively deregulated. The selling price of Telecom was considered by some to be extremely low, given that Telecom had a monopoly of all phone lines in New Zealand at the time.{{cite web|url=http://elsa.berkeley.edu/~woroch/finishing.pdf|title=Telecommunications reform in NZ}}

=1990s=

In 1990, Telecom was sold to two United States–based telecommunications companies, Verizon Communications (formerly Bell Atlantic) and Ameritech, for NZ$4.25 billion.{{cite web|url=http://www.telecom.co.nz/content/0,8748,200633-1548,00.html#20013149|title=History and quick facts|publisher=Telecom NZ}} After Telecom was privatized, the Kiwi Share agreement was drawn up, which included a provision that the company retained free local calling for residential customers.{{cite web|url=https://www.smh.com.au/business/telecom-nzs-kiwi-share-under-review-20070116-gdp972.html|title=Telecom NZ's 'Kiwi Share' under review|date=16 January 2007|website=The Sydney Morning Herald|access-date=26 March 2020}}

In 1991, Telecom listed on the New Zealand, Australian and New York stock exchanges. The following year Telecom implemented a NZ$200 million fibre-optic cable connection between Australia and New Zealand. Also in 1991, Roderick Deane was appointed CEO of the company. Then in 1993 Ameritech and Bell Atlantic reduced their share in Telecom to a combined 49.6% and BellSouth New Zealand Limited (BellSouth), subsequently acquired by Vodafone, set up the first mobile network to compete with Telecom.{{Citation needed|date=November 2023}}

Clear Communications reached an agreement with Telecom in 1995 on local service interconnection. Also in 1995, Telecom created First Media Ltd to develop a cable television network across Auckland and Wellington, called First TV. In 1996 Telecom established a telephone exchange in the United States for international traffic, and launched Xtra.{{Citation needed|date=November 2023}}

1997 saw Telecom buy back NZ$1 billion of its shares. The following year, Ameritech sold down its 24.8% shareholding in an international public offering, and Bell Atlantic issued exchangeable notes that were convertible into the Telecom shares that it owned.

In December 1997{{cite web|url=https://www.business.govt.nz/companies/app/service/services/documents/E94D252521A03D4CDF5FE1778D957AE9|title=Directors|date=December 1997|publisher=Companies Office|access-date=30 April 2016}} Patricia Reddy was appointed to the Telecom board. She remained on it until 2008.{{cite web|url=http://www.business.govt.nz/companies/app/ui/pages/companies/328287/14310741/entityFilingRequirement?backurl=%2Fcompanies%2Fapp%2Fui%2Fpages%2Fcompanies%2F328287%2Fdocuments |title=Directors|date=2008|website=Companies Office|access-date=30 April 2016}} In September 2016 as Dame Patsy Reddy she became the Governor General of New Zealand.{{Citation needed|date=November 2023}}

In 1998, Southern Cross Cables Limited (half owned by Telecom) announced plans to build a fibre-optic cable linking New Zealand with Australia and North America.

Vodafone Group bought BellSouth and started a campaign to attract Telecom customers to its network. {{cite web|url=https://www.rcrwireless.com/19980831/archived-articles/vodafone-to-purchase-new-zealand-gsm-system|publisher=RCR Wireless|title=Vodafone to purchase New Zealand GSM system|date=30 November 1999 |access-date=7 December 2023}}

In 1999, Telecom established a presence in Australia, buying 78% of AAPT, Australia's third-largest telecommunications company. Telecom upgraded its nationwide payphone network to smart card technology. Telecom's broadband Internet service based on ADSL technology, called JetStream, was launched and rolled-out progressively in local exchanges. Also at this time, Telecom began charging customers who connected to the Internet using a local dial up number, forcing all ISPs in New Zealand to change to an 0867 dial up number. This resulted in complaints that this was in breach of Telecom's Kiwishare Agreement where residential customers are allowed free local calling. The decade was rounded off with Theresa Gattung being appointed new CEO of Telecom, with Rod Deane moving to the position of chairman.{{citation needed|date=January 2016}}

=2000s=

File:Telecom logo NZ old.gif

In 2000, Xtra signed up its 300,000th customer.{{Citation needed|date=November 2023}} Telecom also raised its shareholding in AAPT to 100%.{{Citation needed|date=November 2023}}

Evidence emerged in early 2002 of Telecom having exploited an ill-considered, or fraudulently made to order, accounting standard (FRS38) to inflate its year 2001 reported profit by some $263 million.{{cite web|url=http://www.sharechat.co.nz/article/8078091c/enron-s-demise-gives-rise-to-issues-over-telecom-accounts.html|title=Enrons Demise gives rise to Issues over Talacom Accounts|date=15 March 2002|website=Sharechat|access-date=1 May 2016}} This standard required holding companies to incorporate profits and losses of associate companies into their group accounts by way of "equity accounting" except when the associate is insolvent. Being insolvent has been wrongly taken as substantial evidence that the holding company will no longer share in the associates profits and losses. The associate company Southern Cross Cables paid Telecom $263 million in dividends as per (note 2 of) Telecom's 2001 annual accounts,{{cite web|url=https://www.business.govt.nz/companies/app/service/services/documents/29FFCFCD5AC1FCFD58AFBB93D2B3C65F|title=Telecom Annual Accounts 2001|date=25 September 2001|website=Telecom Annual Accounts 2001|publisher=Companies Office|access-date=1 May 2016}} $US200m as per Southern Cross's annual accounts.{{cite web|url=https://www.business.govt.nz/companies/app/service/services/documents/74F555B5B96DF1C6366EA752E4898E98|title=Southern Cross Cable Annual Accounts 2001|date=2001|website=NZ Companies Office|access-date=1 May 2016}} Southern Cross opened for (limited) business in November 2000 and its income from operations to 30 June 2001 was only $US13 million ($US55 million for the 2002 year). Southern Cross were insolvent to the extent of $US24 million as at 30 June 2000 and this increased to $US280 million as at June 2001 as a result of the dividends and other (net) expenses ($328 million in 2002). The dividends were treated as income in Telecom's accounts there being nothing in FRS 28 to say that they should not be although such inclusion did breach an overall requirement that the accounts present a fair view.{{Citation needed|date=November 2023}}

In 2003, a new logo was launched.{{cite web|url=https://www.facebook.com/741385189214656/posts/826020300751144/ |archive-url=https://ghostarchive.org/iarchive/facebook/741385189214656/826020300751144 |archive-date=26 February 2022 |url-access=limited|title=Spark Facebook page - A refreshing change|website=Facebook|date=January 2003|access-date=1 January 2015}}{{cbignore}}{{better source needed|date=July 2015}}

In 2004, Telecom purchased Gen-i Ltd (in May) and Computerland Ltd (in September). The company had 36 retail stores around the country.{{cite news |title=Telecom looks to sell retail stores |url=https://www.nzherald.co.nz/business/telecom-looks-to-sell-retail-stores/GD7Z45DCFWPRK3ASZEKJVAN3JE/ |agency=New Zealand Herald |publisher=Wilson & Horton |date=6 January 2004}} During the year, the company won the Roger Award for The Worst Transnational Corporation operating in New Zealand.{{Citation needed|date=November 2023}}

In 2005, Telecom introduced "Bitstream", a 256 kbit ADSL service sold at wholesale prices (at approximately 10% below the retail price) to other ISPs. Telecom also posted a profit of NZ$916 million. The company also launched online retail store Ferrit launches with about 150 retailers.{{cite news|url=http://www.nbr.co.nz/article/telecom-gives-ferrit-chop-39489|title=Telecom gives Ferrit the chop|publisher=National Business Review|last=McDonald|first=Sarah|date=12 January 2009|access-date=12 January 2009}}

;2006

  • 9 May: An audio clip recorded on 2 March was released involving Telecom CEO Theresa Gattung admitting the use of confusion as a chief marketing tool in the industry. The March recording also dismissed the New Zealand Government as "too smart to do anything dumb" with regards to regulation.{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=5&ObjectID=10380894|title=Gattung admits Telcos not being straight|date=9 May 2006|first=Peter|last=Nowak|work=The New Zealand Herald}}
  • Late May: Roderick Deane resigns as chairman, and is replaced by Wayne Boyd the following month.{{Citation needed|date=November 2023}}
  • July: Matt Crockett is appointed CEO of Telecom's newly formed Wholesale division.{{cite news|url=http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10389213|title=Telecom names head for new wholesale division|first=Jenny|last=Keown|date=1 July 2006|work=The New Zealand Herald }}
  • All Computerland branches around New Zealand are rebranded as Gen-i.{{Citation needed|date=November 2023}}

;2007

  • 16 January: The Librarians Association of New Zealand put in a complaint about a Telecom advertisement where 3 young school children state that, "Only dumb kids read books, brainy kids have broadband." Originally Telecom stated that is the views of the young children and not Telecom and the advertisement was unscripted, later that week Telecom choose to edit the advertisement to remove the comments made by the children.{{citation needed|date=May 2009}}
  • 19 January: It is reported that Paritai Drive, Ōrākei, one of the richest streets in Auckland, is still not capable of receiving a broadband SL service and there are many other well populated areas around New Zealand still not capable of receiving broadband. Opposition Woosh Wireless immediately tested their service in the area and gave residents the opportunity to join their wireless broadband service.{{cite news|url=https://www.nzherald.co.nz/nz/telecom-finally-organises-broadband-for-multimillionaire/MHIT3G3MRGQWP2G43A46T3WGUM/|url-status=live|title=Telecom finally organises broadband for multimillionaire|date=26 January 2007|work=The New Zealand Herald |first1=Claire|last1=Trevett|first2=Jenny|last2=Keown|archive-url=https://web.archive.org/web/20240717113301/https://www.nzherald.co.nz/nz/telecom-finally-organises-broadband-for-multimillionaire/MHIT3G3MRGQWP2G43A46T3WGUM/|archive-date=17 July 2024|access-date=17 July 2024}}{{cite news|url=https://www.nzherald.co.nz/nz/rivals-move-after-millionaire-cant-get-telecom-broadband/BK37RIEYDHLNUVT5ZJTH43LHFY/|url-status=live|title=Rivals move after millionaire can't get Telecom broadband|date=25 January 2007|first=Jenny|last=Keown|work=The New Zealand Herald|archive-url=https://web.archive.org/web/20240717112527/https://www.nzherald.co.nz/nz/rivals-move-after-millionaire-cant-get-telecom-broadband/BK37RIEYDHLNUVT5ZJTH43LHFY/|archive-date=17 July 2024|access-date=17 July 2024}}
  • 5 February: Telecom announces that from March 2007 they will begin rolling out ADSL2+, more than a year after originally stated for roll out.
  • 31 March: Telecom shuts down its old 025 D-AMPS/TDMA network with all 025 phones changed to 027 (CDMA).{{Citation needed|date=November 2023}}
  • May 2007: British Telecom have been in discussion with the New Zealand government regarding Telecom's monopoly control of the NZ broadband network. Three to four years previously, British Telecom were in a similar position to that which NZ Telecom are now in; the British broadband network has since been broken up and the NZ government are keen to learn and possibly copy the development/regulatory/investment model used by the British firm.{{Citation needed|date=November 2023}}
  • The Auckland Chamber of Commerce publicly stated that if Telecom did not invest in a next-generation high-speed network, comparable with that of other Western nations, they would fund a private fibre-optic based service in the 100 megabit speed range. The proposed coverage of this would be within 200m of a path running south from Auckland CBD (situated to allow as many businesses as possible to connect). Any company or private individual within this range would be offered a connection.{{Citation needed|date=November 2023}}
  • 28 June: Telecom announced that Paul Reynolds, CEO of BT Wholesale, has been selected as the new CEO, to start on 27 September.{{cite web|url=http://www.telecom-media.co.nz/releases_detail.asp?id=3459&page=index|title=Telecom New Zealand Appoints Paul Reynolds as Chief Executive Office|publisher=Telecom NZ|date=28 June 2007}} Simon Moutter was appointed as acting CEO in the interim.{{cite news|url=http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10448394|title=Telecom names new boss|date=28 June 2007|work=The New Zealand Herald }}
  • 30 June: Theresa Gattung steps down as CEO,{{cite web|url=http://www.telecom-media.co.nz/releases_detail.asp?id=3414|title=Theresa Gattung to Conclude Role as Telecom CEO|publisher=Telecom NZ|date=2 February 2007}} with a reported leaving payment of $5.125 million.{{cite news|url=http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10461941|title=Gattung's $5m golden goodbye|date=6 September 2007|work=The New Zealand Herald |first=Helen|last=Twose}}
  • 27 September: Dr Paul Reynolds starts as CEO of Telecom.{{Citation needed|date=November 2023}}
  • In November 2007, the Boost Mobile brand was discontinued in New Zealand by Telecom.{{Citation needed|date=November 2023}}
  • 21 November: Mark Ratcliffe, Chief Operating Officer for Technology, is appointed CEO of Telecom's soon-to-be spun off network division.{{Citation needed|date=November 2023}}

;2008

File:Chorus van Telecom New Zealand.jpg

  • 16 January: Telecom announces the formation of Chorus, its new network infrastructure division.{{cite news|url=http://www.nzherald.co.nz/category/story.cfm?c_id=59&objectid=10487239|title=Telecom's Chorus takes centre stage|date=17 January 2008|work=The New Zealand Herald |first=Helen|last=Twose}}{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=5&objectid=10487151|title=Telecom's new network unit named Chorus|date=16 January 2008|first=Helen|last=Twose|work=The New Zealand Herald }}
  • 31 March: Telecom officially separates into three divisions (Chorus, Telecom Wholesale, Telecom Retail){{Citation needed|date=November 2023}}
  • 1 April: Russ Houlden, a colleague of Reynolds at BT, is appointed Chief Financial Officer. He replaces Marko Bogoievski, who joined Infratil.{{Citation needed|date=November 2023}}

;2009

  • 12 January: Telecom announces the closure of its online retail store Ferrit.
  • August: An industrial dispute emerged between Chorus and the Engineering, Printing and Manufacturing Union after servicing contracts in the Auckland and Northland regions are awarded to Australian company Visionstream, which planned to change technicians' employment contracts to a dependent contractor model.{{cite news|url=http://www.stuff.co.nz/business/industries/telecoms-it-media/2575080/EPMU-prepares-Visionstream-campaign/|title=EPMU prepares Visionstream campaign|date=8 July 2009|work=Stuff.co.nz}}{{cite news|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10592927|title=CTU urges Govt to stop broadband talks|date=25 August 2009|work=The New Zealand Herald }}

In October a new logo was announced.{{Citation needed|date=November 2023}}

=2010s=

File:Spark HQ Wellington.jpg

;2010

  • November: Telecom moves into its newly built world HQ on Victoria St in the Auckland CBD. Costing the developer $280 million, it will consist of 2700 staff and be the largest corporate move in New Zealand history.{{Citation needed|date=November 2023}}

;2011

  • 24 May: Crown Fibre Holdings announced that Telecom had been successful in partnering with the Government to build a fibre network.{{Citation needed|date=November 2023}}
  • 9 June: The National Business Review reveals that in OIA documents that the Department of Internal Affairs considered at least one text message sent by Telecom to be in breach of the Unsolicited Electronic Messages Act 2007.{{cite news|last=Keall|first=Chris|url=https://www.nbr.co.nz/article/telecom-broke-anti-spam-law-ck-94986|title=Telecom broke anti-spam law|date=9 June 2011|work=National Business Review|access-date=22 May 2018}}
  • 1 December: Telecom divests itself of Chorus, the Network Infrastructure division, in a one for five share deal, with Chorus becoming a separately listed company.{{Citation needed|date=November 2023}}

;2013

  • 9 December: Telecom announces sale of AAPT for A$450 million{{cite web | url=https://nzx.com/companies/TEL/announcements/244861 | title=Telecom announces sale of AAPT for A$450 million | publisher=New Zealand Exchange | date=9 December 2013}}

;2014

  • 21 February: Telecom announces a name change to 'Spark', which took effect on 8 August 2014{{cite web|url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11305410 |title=Bright Spark - Telecom changes name |date=8 August 2014 |work=The New Zealand Herald |access-date=8 August 2014}} to better reflect the company's new direction and aspirations.
  • 25 June 2014: Spark announce Lightbox, an online movie and TV show streaming service, in competition with Netflix and SkyTV.{{cite web|title = Lifting the Lightbox lid: a look inside Telecom's new digital venture|url = http://stoppress.co.nz/didge/opening-lightbox-look-what-telecoms-new-digital-venture-offers|website = stoppress.co.nz|date = 26 June 2014|access-date = 31 December 2015}} Lightbox went live on 27 August 2014.{{cite web|title = Spark's Lightbox launches, with a little surprise from the boss|url = http://www.nbr.co.nz/article/sparks-lightbox-launches-little-surprise-boss-ck-161495|website = The National Business Review|date = 28 August 2014|access-date = 31 December 2015}}
  • 8 August: Telecom rebrands as Spark. Individual subsidiaries of the company are rebranded to reflect the name change such as Telecom Mobile becomes Spark Mobile, Telecom Foundation becomes Spark Foundation, Gen-i is rebranded as Spark Digital. The company kept the existing Star shaped logo with each division using a different colour for the logo such as silver for Spark New Zealand, orange or pink for Spark Home & Mobile stores, green for Spark Business and purple for Spark Digital.{{Citation needed|date=November 2023}}
  • 5–7 September: Spark experiences nationwide outages due to a denial of service attack, which was believed to have largely originated from malware that installed itself onto customers' computers when they clicked on malicious links to celebrity photos leaked in August.{{cite web | url=http://www.stuff.co.nz/dominion-post/10468024/Nationwide-internet-outage-sparked | title=Spark broadband out nationwide | publisher=The Dominion Post | date=6 September 2014 | access-date=7 September 2014}}

;2015

  • 12 August: Spark released a new cloud based consumer service called Morepork, which offers smart home based security services. This enabled consumers to purchase security hardware and services through a monthly subscription for home monitoring linked to their mobile phone.{{cite news|title = Spark's $1000 home security system|url = http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11495958|newspaper = The New Zealand Herald|date = 12 August 2015|issn = 1170-0777}}
  • 7 December: Spark purchased a South Island–based IT services firm, Computer Concepts Ltd, for $50 million NZD.{{cite news|title = Spark buys South Island IT service firm for $50m|url = http://www.nzherald.co.nz/telecom/news/article.cfm?o_id=207&objectid=11557105|newspaper = The New Zealand Herald|date = 7 December 2015|issn = 1170-0777}}

;2019

  • 14 March: Spark launched its subscription based sports streaming service Spark Sport.{{cite web|url=https://www.sparksport.co.nz/|publisher=Spark Sport|access-date=5 October 2022|title=Stream your Favourite Sports on Spark Sport}} The service would compete against Sky Sport (New Zealand) which at the time had a near monopoly on pay TV sports rights in New Zealand.{{Citation needed|date=November 2023}}
  • 19 December: It was announced that Spark would be selling its Lightbox streaming service to the satellite television company Sky Television, which intends to merge Lightbox into its own online streaming service Neon in 2020. Following the merger, Spark will partner with Sky to make the service available to Spark customers through the telecommunication company's entertainment offers.{{cite news |last1=Ensor |first1=Jamie |title=Lightbox to merge with Neon after Sky purchase |url=https://www.newshub.co.nz/home/money/2019/12/lightbox-to-merge-with-neon-after-sky-purchase.html |archive-url=https://web.archive.org/web/20191219010709/https://www.newshub.co.nz/home/money/2019/12/lightbox-to-merge-with-neon-after-sky-purchase.html |url-status=dead |archive-date=19 December 2019 |access-date=19 December 2019 |work=Newshub |date=19 December 2019}}{{cite news |last1=Pullar-Strecker |first1=Tom |title=Spark sells Lightbox internet TV service to Sky TV, cost to viewers not yet known |url=https://www.stuff.co.nz/business/118317289/spark-sells-lightbox-internet-tv-service-to-sky-tv?cid=app-iPhone |access-date=19 December 2019 |work=Stuff.co.nz |date=19 December 2019}}{{cite news |title=Sky expected to merge Lightbox with Neon streaming service |url=https://www.rnz.co.nz/news/business/405818/sky-expected-to-merge-lightbox-with-neon-streaming-service |access-date=19 December 2019 |work=Radio New Zealand |date=19 December 2019}}

=2020s=

;2023

  • 4 April: Spark announced that it would invest between NZ$250 million and NZ$300 million into building data centres over the next three years, and between NZ$40 million and NZ$60 million into its 5G business over the next three years.{{cite news|title=Spark New Zealand to invest up to $189 million in data centres over three years |url=https://www.reuters.com/business/media-telecom/spark-new-zealand-invest-up-189-mln-data-centres-over-three-years-2023-04-04/ |work=Reuters |archive-url=https://web.archive.org/web/20230405181650/https://www.reuters.com/business/media-telecom/spark-new-zealand-invest-up-189-mln-data-centres-over-three-years-2023-04-04/|archive-date=5 April 2023 |date=4 April 2023 |url-status=live}}

=Mobile network=

Telecom started the first cellular network service using AMPS in 1987. This transitioned to D-AMPS TDMA digital services in the early 1990s. The service in the 800 MHz band gave great geographic coverage.

In 1996 Telecom introduced an innovative and first-to-market wireless data cellular network known as CDPD (Cellular Digital Packet Data) that provided IP connections with mobility. Introduced to the market by the product manager, David Beale, they succeeded in the very first IoT-device connections in the region connecting, amongst other things, Coke's vending machines, NZ Post's couriers and parcel tracking, and telemetry data from the Americas Cup yacht races in Auckland to feed a realtime TV graphics service.{{Citation needed|date=November 2023}}

Telecom Mobile, the mobile division of Telecom, reached 500,000 mobile customers connected to its network in 1998, which doubled to one million customers by 2000.{{Citation needed|date=November 2023}}

In 2005, a phreaker exposed a vulnerability with the mobile network, allowing public access to almost anyone's voicemail; in response to concerns over privacy and security, this network issue was resolved.{{cite web |date=13 May 2005 |title=NZ hacker targets voicemail |url=https://www.smh.com.au/national/nz-hacker-targets-voicemail-20050513-gdlbf3.html |access-date=30 December 2022 |website=The Sydney Morning Herald }}

On 31 March 2007, the 025 D-AMPS ("TDMA") cellular network was closed down.

{{cite news |title=Goodbye to 025 network|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10431887 |newspaper=The New Zealand Herald|date=31 March 2007|access-date=31 March 2007}} Then on 8 June of that year, Telecom Mobile announced plans to build a hybrid W-CDMA/UMTS-CDMA 850 MHz network,{{cite web|archive-url=https://web.archive.org/web/20130730032704/http://www.telecom-media.co.nz/releases_detail.asp?id=3455&page=1&pagesize=10&filtertext=UMTS&m1=1&y1=1996&m2=4&y2=2008&filter=filter|url=http://www.telecom-media.co.nz/releases_detail.asp?id=3455&page=1&pagesize=10&filtertext=UMTS&m1=1&y1=1996&m2=4&y2=2008&filter=filter|title=Telecom Future-Proofs Mobile Services With New Network Investment|date=8 June 2007|publisher=Telecom NZ|archive-date=30 July 2013 }} based on the WCDMA HSPA technology, to eventually replace its current CDMA EV-DO network. On 29 May 2009, Telecom launched its new network, branded as "XT", to the public.{{cite news|archive-url=https://web.archive.org/web/20090509000756/http://www.stuff.co.nz/business/industries/telecoms-it-media/2391180/Vodafone-Telecom-reach-deal|url=http://www.stuff.co.nz/business/industries/telecoms-it-media/2391180/Vodafone-Telecom-reach-deal|title=Vodafone, Telecom reach deal|last=Chang|first=Adrian|author2=Vaughan, Gareth |date=7 May 2009|work=Business Day|publisher=Fairfax New Zealand|url-status=live|archive-date=9 May 2009}}

In December 2009{{cite news |url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10615386 |title=Telecom's XT network still down south of Taupo |first=Kieran|last=Nash|date=14 December 2009|newspaper=The New Zealand Herald |access-date=18 February 2010}} and February 2010,{{cite news |url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10622612 |title=Telecom XT outages unacceptable - association |date=27 January 2010|newspaper=The New Zealand Herald |access-date=18 February 2010}}{{cite news |url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10626499 |title=XT outage blamed on 'unusual problems' |date=16 February 2010|newspaper=The New Zealand Herald |access-date=18 February 2010}} Telecom's new XT Mobile Network experienced high-profile failures for many customers in locations from Taupo south, due to a radio network controller failure in Christchurch. As a result of the loss of service Telecom offered a $5 million compensation package for its customers.{{cite news|url=http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10623758 |title=XT users share $5m compo package |first=Beck|last=Vass|date=3 February 2010 |newspaper=The New Zealand Herald |access-date=18 February 2010}}

In April 2010, Telecom released its first Android handset on the XT Mobile Network, the LG GW620.{{Citation needed|date=November 2023}}

On 31 July 2012, the Telecom CDMA mobile network was closed down.{{cite news|url=http://www.techday.co.nz/netguide/news/telecom-names-cdma-shut-down-date/20479/|title=Telecom names CDMA shut-down date|date=1 July 2011|publisher=Netguide}}

In September 2013, Telecom officially launched new Ultra Mobile branding and plans. These plans included a free 4G upgrade (4G was made available two months later in November 2013) with a 1GB of data per day from Telecom WiFi hotspots.{{cite web |url=http://www.campaignbrief.co.nz/2013/10/ultra-mobile-launches-a-vibran.html|title=Telecom launches vibrant Ultra mobile branding|date=8 October 2013}} In October 2013, Telecom sought clearance to acquire management rights for parts of the 700 MHz spectrum with the intention of developing of its 4G mobile network.{{cite news|url= http://www.scoop.co.nz/stories/BU1310/S00214/telecom-seeks-clearance-to-acquire-radio-spectrum.htm| title=Telecom seeks clearance to acquire radio spectrum |date=4 October 2013 |publisher=Scoop Media}}

Spark New Zealand along with fellow telecommunications companies 2degrees and One New Zealand intend to end their 2G and 3G by 31 December 2025.{{cite news |last1=Brislen |first1=Paul |title=Farewelling the era of basic video calls, emails on the go: Goodbye 3G |url=https://www.thepost.co.nz/business/360570128/farewelling-era-basic-video-calls-emails-go-goodbye-3g |access-date=10 February 2025 |work=The Post |date=9 February 2025 |archive-url=https://web.archive.org/web/20250210225909/https://www.thepost.co.nz/business/360570128/farewelling-era-basic-video-calls-emails-go-goodbye-3g |archive-date=10 February 2025|url-status=live}}

=Industry regulation and company restructuring=

In 2000, the New Zealand Government conducted a comprehensive review of the regulatory regime in the telecommunications industry. Subsequently, in 2001 the Telecommunications Act was passed, which among other things established the role of a Telecommunications Commissioner.{{Citation needed|date=November 2023}}

In a decision by the Government on 3 May 2006, Telecom was forced to unbundle the local loop, to provide "access to fast, competitively priced broadband internet".{{cite news|url=http://tvnz.co.nz/view/page/411366/709992|title=Govt announces broadband changes|date=3 May 2006|publisher=TVNZ}} The decision significantly affected the company's market share,{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10380243|title=$1.1 billion wiped off Telecom's value as shares plunge|work=The New Zealand Herald |date=4 May 2006|first1=Rachel|last1=Pannett|first2=Simon|last2=Louisson}} and allowed competitors (such as TelstraClear, Orcon and ihug) to offer broadband and other communications services throughout New Zealand by installing their own equipment in exchanges.{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10380108|title=Govt to open up Telecom network for faster broadband|date=3 May 2006|work=The New Zealand Herald }}{{cite news|url=https://www.bloomberg.com/apps/news?pid=10000081&sid=aAkS5cuhU0uQ&refer=australia|title=NZ Says Telecom Must Give Rivals Greater Access to Network|publisher=Bloomberg|first=Tracy|last=Withers|date=3 May 2006}} The announcement of this decision was rushed ahead of schedule, as the documents were leaked to Telecom who advised the government of the leak. It was widely reported that the government had intended to make the announcement during the 2006 Budget. Most of Telecom's competitors and many independent commentators such as InternetNZ and Paul Budde applauded the decision, with opposition to unbundling coming from the Business Roundtable, Federated Farmers, and Bruce Sheppard (representing Telecom shareholders). Legislation was introduced to enable the regulatory changes. Three other political parties (New Zealand First,{{cite news|url=http://www.scoop.co.nz/stories/PA0605/S00102.htm|title=NZ First Welcomes Telecom Competition|author=NZ First|date=4 May 2006}} the Green Party{{cite web|url=http://www.greens.org.nz/searchdocs/PR9776.html|title=Government moves on Telecom welcomed|author=NZ Greens}} and United Future){{cite web|url=http://www.unitedfuture.org.nz/press/show_item.php?t=0&i=1387|title=Copeland: Local loop unbundling decision a win for all New Zealanders|author=United Future NZ}} supported the decision, which would give the government at least 66 votes if there were no votes against the party line. The main opposition National Party initially opposed the unbundling decision, but later voted in favour of it after a select committee hearing. This left the ACT Party alone in opposing the decision.{{Citation needed|date=November 2023}}

The company was then affected by a series of other government decisions. Firstly, in early-June 2006 the Commerce Commission ruled on the contentious issue of mobile telephone termination charges, announcing that calls between a landline and a mobile phone within a geographically defined boundary could be connected free of termination charges. This ruling allowed Vodafone New Zealand to establish a mobile phone product which could also provide free local calling. Then, the Commerce Commission granted two of Telecom's competitors, CallPlus and ihug, access to an unrestricted, Unbundled Bitstream Service, which would allow them to provide competitive broadband services.{{citation needed|date=August 2015}}

On 27 June 2006, the company announced that it would voluntarily separate its business into two separate operating business units – Wholesale and Retail.{{cite web|url=http://www.telecom-media.co.nz/releases_detail.asp?id=3325&page=index|archive-url=https://web.archive.org/web/20130730033926/http://www.telecom-media.co.nz/releases_detail.asp?id=3325&page=index |archive-date=30 July 2013|title=Telecom to separate wholesale and retail operations|date=27 June 2006|publisher=Telecom NZ}} The Government introduced the Telecommunications Amendment Bill in November 2006 to force Telecom to open its network to competitors. The bill officially split Telecom into three business units from 31 March 2008, with network access separated from the wholesale and retail units.{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10412818|title=Telecom's tough year continues – it's split into three|first=Jenny|last=Keown|date=28 November 2008|work=The New Zealand Herald }}

In January 2012 Telecom launched a new Mobile Network aimed at the youth market named Skinny Mobile.{{cite web|url=https://www.telegeography.com/products/commsupdate/articles/2012/01/13/skinny-launch-takes-rivals-by-surprise-nz-price-war-anticipated/|title=Skinny launch takes rivals by surprise; NZ price war anticipated|publisher=TeleGeography|access-date=3 August 2016}}

On 28 March 2013, Telecom announced that it would reduce staff levels by constraint on recruitment activity and redundancies. This followed from speculation by MP Clare Curran that up to 1500 jobs would be cut from the company.{{cite news|url=http://tvnz.co.nz/business-news/more-job-cuts-possible-telecom-5388904|title=More job cuts possible at Telecom|date=28 March 2013|publisher=TVNZ}}

Spark Broadband

Spark is New Zealand's largest internet service provider. It was formerly named Xtra. The next largest ISP in the New Zealand market is One NZ, a position it acquired when it purchased TelstraClear in 2012.{{cite web|url=https://one.nz/broadband/internet-services/#telstraclear |title=Vodafone acquires TelstraClear|publisher=Vodafone}}{{cite web|url=https://comcom.govt.nz/news-and-media/media-releases/archive/commerce-commission-clears-vodafones-purchase-of-telstraclear|title=Commerce Commission clears Vodafone's purchase of TelstraClear|date=16 April 2018 }}

Spark offers asymmetric digital subscriber line (ADSL), very-high-bit-rate digital subscriber line (VDSL), fibre to the premises (FTTP) fixed-line broadband, and Wireless Broadband.

Spark Mobile

{{see also|Spark New Zealand Mobile}}

Spark NZ is New Zealand's largest mobile operator by market-share. As of 2021, Spark NZ had 41% of the New Zealand market, beating competitor One NZ (then called Vodafone) who was at 38%.{{cite web |title=Statista - Estimated mobile phone provider market share in New Zealand in 2021, by subscribers |url=https://www.statista.com/statistics/996221/estimated-market-share-mobile-providers-by-subscribers-new-zealand/ |publisher=Statista - Paid}} Telecom's mobile network was branded as "XT", and operates at 850 MHz nationwide (with some 2100 MHz overlay in urban areas), and delivers 3G data connectivity wherever there is coverage.{{Citation needed|date=November 2023}}

Telecom originally operated a TDMA (AMPS, Digital D-AMPS/TDMA) mobile network; this was superseded by its CDMA network. The TDMA network was turned off on 31 March 2007, and most of its customers migrated to CDMA. The CDMA EV-DO network was marketed as T3G, a 2 MB third-generation mobile system. Telecom announced on 8 June 2007 the intention to build a W-CDMA/UMTS network, to be called XT Mobile Network, based on WCDMA HSPA technology, to replace its current CDMA EV-DO network. The network was launched on 29 May 2009. The CDMA network ran in parallel with XT until it was shut down on 31 July 2012.{{Citation needed|date=November 2023}}

The TDMA network used the 025 mobile prefix, using a mixture of six- and seven-digit subscriber numbers. With the switch to CDMA, Telecom migrated to the 027 prefix and standardised the subscriber numbers to seven digits, adding a 4 to the beginning of old six-digit numbers.{{Citation needed|date=November 2023}}

=Customer numbers and market share=

{{More citations needed section|date=January 2012}}

Spark competes with One NZ, 2degrees and mobile virtual network operators for market share. In November 2015, Spark had 2,200,000 mobile customers at 40% market share.{{cite web |title=New Zealand: mobile providers estimated market share by subscribers 2021 |url=https://www.statista.com/statistics/996221/estimated-market-share-mobile-providers-by-subscribers-new-zealand/ |access-date=30 December 2022 |website=Statista }}

In 2021, it was estimated that Spark NZ held a 41% market share in New Zealand.{{cite web | url=https://www.statista.com/statistics/996221/estimated-market-share-mobile-providers-by-subscribers-new-zealand/ | title=New Zealand: Mobile providers estimated market share by subscribers 2021 }}

The following shows customer numbers and market share information for Telecom Mobile, covering both the now-shut-down TDMA and CDMA networks and Spark's current 3G, 4G, and 5G networks.{{Citation needed|date=November 2023}}

class="wikitable"
Quarter

! No of customers

! Market share %

December 1999

| 858,000

| 68.37%

December 2000

| 1,150,000

| 60.43%

December 2001

| 1,379,000

| 56.94%

December 2002

| 1,229,000

| 50.18%

December 2003

| 1,298,000

| 49.95%

November 2005

| 1,600,000

| 46%

March 2007

|1,900,000

|49%

February 2010

|2,152,000

|44.4%

August 2012

|1,600,000

|32.2%

November 2015

|2,200,000

|40%

Spark Sport

{{Infobox online service

| name = Spark Sport

| title = Spark Sport

| logo = SparkSportLogo.png

| logo_size = 230px

| logo_alt =

| logo caption =

| image =

| image_size =

| image_alt =

| collapsible =

| collapsetext =

| developer = Spark New Zealand

| generation =

| type = Streaming media

| launched = 14 March 2019

| discontinued = 30 June 2023

| version =

| version release date =

| preview version =

| preview version release date =

| updated =

| platform =

| operating system =

| status =

| members =

| website = {{URL|https://www.sparksport.co.nz/}}

| predecessor =

| successor =

}}

Spark Sport was a New Zealand sports streaming service, owned and operated by Spark. The service was launched on 14 March 2019 after Spark obtained the New Zealand broadcast rights to various World Rugby events including the 2019 Rugby World Cup a year earlier.{{cite web|url=https://www.sparknz.co.nz/news/Spark_Sport_launching_early_March/|title=Spark Sport launching in early March with a free trial month for New Zealanders|date=20 February 2019|website=sparknz.co.nz|access-date=18 November 2021}}{{cite web|url=https://www.stuff.co.nz/sport/rugby/103126229/tvnz-and-spark-win-rugby-world-cup-rights|title=TVNZ and Spark win Rugby World Cup rights|date=16 April 2018|website=stuff.co.nz|access-date=18 November 2021}} During that time, Spark Sport obtained the rights to several other sports to build its catalog, until the streaming service was ready for launch, coverage was sublicienced to TVNZ to screen. Its first major live sport broadcast was the streaming of the 2019 Australian F1 Grand Prix.{{cite web|url=https://www.stuff.co.nz/business/industries/108091263/spark-overtakes-sky-to-pick-up-rights-for-formula-1|title=Spark overtakes Sky to pick up rights for Formula 1|date=25 October 2018|website=Stuff|access-date=18 November 2021}}

There were concerns that Spark's broadcast of the Rugby World Cup would struggle under New Zealand's internet capabilities especially in rural communities and anticipated audience numbers streaming matches resulting in similar issues to Optus Sport's broadcasting FIFA World Cup 2018 in Australia. On the second day of the Rugby World Cup, Spark Sport suffered technical issues during its live stream of the match between New Zealand and South Africa leaving viewers unable to watch the game, as a result broadcast of the second half was simulcast of traditional television on TVNZ Duke as part of a contingency plan with free-to-air broadcaster TVNZ for issues during the Rugby World Cup. Viewers would continue to report issues throughout the tournament, despite the issues Spark responded noting that there were no issues from their end in the broadcast feed and that the issues experienced were due to the individual viewer's set up configuration of their streaming devices.{{cite web|url=https://www.sportspromedia.com/news/spark-rugby-world-cup-complaints-streaming-ott-new-zealand/|title=Spark's Rugby World Cup coverage hit by thousands of complaints|date=23 September 2019|website=SportsPro|access-date=18 November 2021}}

Following its broadcast of the 2019 Rugby World Cup, Spark Sport announced it had secured a six-year broadcast deal with New Zealand Cricket for all domestic and international cricket played within New Zealand.{{cite web|url=https://www.stuff.co.nz/sport/cricket/black-caps/116458746/spark-sport-wins-new-zealand-cricket-broadcasting-rights-for-six-years|title=Spark Sport wins New Zealand Cricket broadcasting rights for six years|date=10 October 2019|website=Stuff|access-date=18 November 2021}} The rights had been previously held by Sky Sport for over 25 years. Spark Sport's coverage of cricket is presented by Scotty Stevenson, with regular analysts and commentators including Mark Richardson, Craig McMillan, Craig Cumming, Brendon McCullum, Grant Elliott, Stephen Fleming, Rebecca Rolls and Frances Mackay. American outside broadcast (OB) provider Gravity Media provided the equipment to cover Spark's coverage, brought over from Australia. This was due to the country's main OB company On Site Broadcasting being owned by Sky Television and had 'Sky Sport' livery on most of its OB trucks. UK's Whisper TV provided the overall production element. During the 2022/23 season NEP Group was given the outside broadcast contract, which, ironically, bought OSB from Sky in 2020 and all trucks rebranded with NEP livery.{{Citation needed|date=November 2023}}

Spark Sport was the host broadcaster for the 2021 Rugby World Cup held in New Zealand.{{cite web|url=https://www.rugbyworldcup.com/2021/news/326254|title=World Rugby Awards New Zealand Broadcast Rights for the Men's and Women's Rugby World Cups to Spark|date=15 April 2018|website=World Rugby|access-date=18 November 2021}}

Spark had previously broadcast sport through its subscription video on-demand service Lightbox partnering with Coliseum Sports Media to deliver a subscription-based sports streaming service called Lightbox Sport streaming golf, English Premier League football and French Top 14 rugby.{{Citation needed|date=November 2023}}

In December 2022, Spark Sport announced that it would be shutting down in the second half of 2023 due to a combination of financial and technical problems.{{cite news |last=Sim |first=Josh |date=16 December 2022 |title=Spark to close sports streaming service in 2023 |url=https://www.sportspromedia.com/news/spark-sport-streaming-ott-service-closure-tvnz-rights-new-zealand/ |access-date=1 August 2023 |website=SportsPro |language=en-GB}} The remaining three years broadcasting rights for all New Zealand Cricket international and domestic games within New Zealand would go to TVNZ from 1 July 2023.{{cite news |last=Yusuf |first=Imran |date=16 December 2022 |title=Spark to exit sports streaming as TVNZ takes over rights, Sky NZ acquires F1 |url=https://www.sportbusiness.com/news/spark-to-exit-sports-streaming-as-tvnz-takes-over-rights-sky-nz-acquires-f1/ |access-date=1 August 2023 |website=SportBusiness |language=en-US}} The Formula 1 had moved to Sky TV and Sky Sport.{{Cite web |date=2022-12-16 |title=Sky TV wins Formula 1 motor racing rights in wake of Spark's exit |url=https://www.rnz.co.nz/news/business/480902/sky-tv-wins-formula-1-motor-racing-rights-in-wake-of-spark-s-exit |access-date=2023-08-01 |website=RNZ |language=en-nz}}

=Previously held sports rights=

; Rugby union

; Football

; Cricket

; Motorsport

; Rugby league

  • 2021 Men's Rugby League World Cup{{cite web|url=https://discover.sparksport.co.nz/tournaments/rugby-league-world-cup|publisher=Spark Sport|access-date=5 October 2022|title=Stream Rugby League World Cup 2021 🏉 Live and On-Demand – Spark Sport NZ}}
  • 2021 Women's Rugby League World Cup{{cite web|url=https://discover.sparksport.co.nz/tournaments/rugby-league-world-cup|publisher=Spark Sport|access-date=5 October 2022|title=Stream Rugby League World Cup 2021 🏉 Live and On-Demand – Spark Sport NZ}}
  • 2021 Wheelchair Rugby League World Cup{{cite web|url=https://discover.sparksport.co.nz/tournaments/rugby-league-world-cup|publisher=Spark Sport|access-date=5 October 2022|title=Stream Rugby League World Cup 2021 🏉 Live and On-Demand – Spark Sport NZ}}
  • 2021 Physical Disability Rugby League World Cup{{cite web|url=https://discover.sparksport.co.nz/tournaments/rugby-league-world-cup|publisher=Spark Sport|access-date=5 October 2022|title=Stream Rugby League World Cup 2021 🏉 Live and On-Demand – Spark Sport NZ}}

; Hockey

; Tennis

  • WTA Tour events excluding events played in New Zealand.

; Other Sports

Criticism

When Telecom held a general monopoly in New Zealand telecommunications, it was criticised for using its incumbent status to charge high prices. Prices have subsequently dropped as competition in the market has increased.{{Citation needed|date=November 2023}}

Competitors alleged that Telecom engaged in unfair practices to prevent them from gaining ground, for example by reselling broadband capacity to Xtra at lower prices than to other ISPs.{{citation needed|date=December 2012}} In July 2005, two dozen Internet service providers formally complained to New Zealand's Commerce Commission via a letter.{{cite news|url=http://computerworld.co.nz/news.nsf/UNID/232444CFFD9ADC6ECC25703F0009B334?OpenDocument&pub=Computerworld|title=ISPs formally complain to Commerce Commission|date=18 July 2005|first=Juha|last=Saarinen}} Notably absent from the list of signatories were Telecom's ISP, Xtra, and several ISPs owned by its main competitor, TelstraClear. On 1 February 2007 the Consumers' Institute gave its "supreme ass award" for bad products to Telecom for its Xtra broadband service, Consumers Institute executive director David Russell claimed that since Telecom "unleashed" its broadband speeds, the institute had been "inundated with complaints of slower speeds and frustrating cutouts".[http://www.scoop.co.nz/stories/BU0701/S00281.htm "The Consumer Complete Ass Awards 2006"], 31 January 2007, Press Release: Consumer's Institute Telecom has been given the Roger Award more than once, in 2004 and 2007 – and only the second company awarded as such, with the defunct TranzRail being the first.{{cite web|url=http://canterbury.cyberplace.co.nz/community/CAFCA/publications/Roger/index.html|title=The Roger Award}}

The New Zealand Treasury once estimated the economic loss from Telecom's (now former) monopoly to be in the region of $50–$250 million a year.{{citation needed|date=December 2012}} Another study commissioned in 1998 by competitor Clear (later TelstraClear) estimated that the loss was $400 million a year. At a retail level Telecom now faces competition in all areas — cellular, internet, toll-calls and, subject to ongoing developments, in local calling. At a network level these retail services often resell Telecom wholesale products.{{Citation needed|date=November 2023}}

Telecom claimed{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=5&ObjectID=10351794|title=Free calls mean less broadband — Telecom|date=25 October 2005|work=The New Zealand Herald |first=Peter|last=Nowak}} one reason for poor broadband uptake in New Zealand was because of the fact New Zealand residential subscribers enjoy free local calling. Telecom stated "customers have the option of moving to faster broadband services, but free local calling creates a disincentive by allowing them to use dial-up for as long they want" (i.e. they do not have to pay a per-minute call charge while using dial-up, unlike many other countries where local calls are charged for). However, some experts and competitors disagreed – including the secretary of the OECD.{{cite news|url=http://www.nzherald.co.nz/topic/story.cfm?c_id=363&ObjectID=10352757|title=OECD takes shot at Telecom|date=31 October 2005|work=The New Zealand Herald |first=Peter|last=Nowak}}

Telecom failed to reach their self-imposed goal of around 83,333 wholesale broadband customers by the end of 2005. During her opening address to parliament, Prime Minister Helen Clark criticised the state of the internet in New Zealand.{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=5&ObjectID=10367253|title=PM joins critics of internet monopoly|date=8 February 2006|first=Peter|last=Nowak|work=The New Zealand Herald }} This was followed by extensive criticism in the media such as in two high-profile television programmes, in two episodes of Campbell Live (whose past major sponsors include Telecom), during which CEO Theresa Gattung was challenged by host John Campbell, and an episode of the New Zealand edition of Sunday. Critical articles had been published by various magazines and newspapers, including the largest newspaper, The New Zealand Herald. Of significance, many of these were lengthy and high-profile articles compared to many previous articles critical of Telecom — among the most noticeable of these was published by the National Business Review, in which it was stated that "Far from being 'Xtraordinary', as its multimillion dollar advertising would have you believe, Telecom is strangling the nation's advancement." While in Wellington for an ICANN meeting, Vint Cerf was reported to have made a personal visit to David Cunliffe, the telecommunications minister where it is believed he recommended that Telecom be unbundled.{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10374148|title=Open up access, says 'internet evangelist' | work=The New Zealand Herald | first=Peter |last=Nowak |date=24 March 2006}}{{cite news|url=http://www.computerworld.com.au/article/153870/cerf_wary_biased_broadband_business_models/|title=Cerf wary of biased broadband business models|publisher=Computerworld|date=28 March 2006|first=Stephen|last=Bell}} The government investigated whether it needed to force Telecom to unbundle the network, thereby allowing other companies access and improving broadband service for consumers.{{Citation needed|date=November 2023}}

From 2007, Yahoo! provided Telecom's email service, which came under heavy criticism in early 2013 following a spam and phishing attack described as the biggest to have ever hit the country.{{cite news| url=http://www.3news.co.nz/Telecom-rush-to-fix-Yahoo-Xtra-spam-hack/tabid/412/articleID/286402/Default.aspx|work=3 News NZ |title= Telecom rush to fix hack| date=11 February 2013}} Telecom and Yahoo! automatically reset tens of thousands of users' passwords.{{cite news | url=http://www.3news.co.nz/Telecom-defends-email-reset-operation/tabid/423/articleID/287149/Default.aspx | work=3 News NZ | title=Telecom defends email reset operation | date=18 February 2013 | access-date=4 April 2013 | archive-date=1 February 2014 | archive-url=https://web.archive.org/web/20140201194532/http://www.3news.co.nz/Telecom-defends-email-reset-operation/tabid/423/articleID/287149/Default.aspx | url-status=dead }} In April, Telecom announced that despite the issue, it would keep Yahoo! on as an email provider.{{cite news| url=http://www.3news.co.nz/Telecom-sticks-with-Yahoo-email-despite-hack/tabid/421/articleID/293130/Default.aspx|work=3 News NZ |title= Telecom sticks with Yahoo email| date=5 April 2013}} Problems with Telecom's YahooXtra email continued into December 2013 and further into 2014 with the latest problems reported on 10 January.{{cite news| url=http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11184322|title= Telecom probes fresh YahooXtra email virus| date=10 January 2014}} They later moved their mail service to SMX, a New Zealand-based provider, in May 2017.{{cite web|url=https://smxemail.com/our-company/blogs-news/press-releases/spark-replaces-yahoo-with-smx-managed-messaging-email-solution/|title = Spark replaces Yahoo with SMX Managed Messaging email solution| date=2 May 2017 }}

References

{{Reflist}}