2degrees posts loss despite revenue rise
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Mobile operator 2degrees has posted a total loss of $92.6 million for 2011, up from $73.9m, taking its accumulated losses to $247.4m.
Operating revenues were up 72 per cent to $185.4m. Chief executive Eric Hertz said he expected the company would break even before interest and tax charges this year.
2degrees could have to fork out more than $100m to buy 4G radio spectrum in an auction likely to take place late this year, or early next year, if it wants to be a significant player in 4G and if the spectrum sells for the going international rate.
John Stanton, chairman of majority American owner Trilogy International, dismissed speculation in March that the company might have to sell down its shareholding and bring in new investors in order to maintain its strong growth and invest in 4G.
But he said 2degrees might need to call on the Government to prevent "bullying" by competitors, at least until it upped its share of mobile market revenues from 8 per cent to "the mid-teens".
Trilogy sold its stake in Haitian mobile provider Voila this year but still has interests in Bolivia and The Dominican Republic.
1. Wheres the money gone (investment in Chinese company Huawaii equipment?). When the CDMA and major parts of the GSM network were Ericsson equipment at presumably far greater cost and no threat to NZ security?
2. Ownership issues? Who are the "other" owners of 2degrees, and are they also continually wanting "government" (i.e. Taxpayer) handouts? If you investigate moderatly I think you will find YES!
As as current client I have been given a Huawaii XEOS X5 with the then top of the line $149/month deal, it broke, spent 4 months in repair, sent back, still broke, another 1 month in repair, then a replacement of the same nature.
In the meantime had a degraded, obsolete Acer BeTouch E130 which I eventually bought because it was better. After 3 months "negotiations" refunded the $500 early termination charge on the original $600 phone, but HAD to goto pre-pay (aweful service) to complete transaction, for 1 month. Still no credit applied. Waited another week.
Eventiually back on post-paid ("paid monthly" in 2degrees speak) at $89 with A Samsung Galaxy S3.
Sent a Telecom Garmin-Asus in at same time for service (yup, same day) and got it repaired properly in 1 week. Any issues with TC get credited to your account immediatly, no going on PrePay rubbish.
So wheres the rot in the company, and why the heck should the taxpayer bear the burdon of any of the owners?
1. Full disclosure of all owners.
2. Allow the 202/204 help service a $500 discretionary allowance per client.
3. Better store support required.
4. Investment in NZ product/service instead of OS interests.
5. Complete detachment from tax funding by NZ slaves.
Posted by Phil Bridge at 22:01:48 on July 2, 2012