New Zealand to get third mobile network in August

WELLINGTON, May 11 - New Zealand Communications Ltd will launch the country's third mobile phone network in August and cut prices to challenge the sector's two dominant players, it said on Monday.

The privately-owned telco is rebranding itself 2degrees and said it aimed to bring competition to the mobile sector.

"Almost everyone in New Zealand has a mobile phone, but they use it for far less than almost anywhere else in the world, and that's due to the high cost," said chief executive Mike Reynolds.

New Zealand's mobile phone sector is dominated by Telecom NZ <TEL.NZ> and a subsidiary of Britain's Vodafone Plc <VOD.L>.

The company, which is owned by U.S. based Trilogy International, a Maori trust, and two private equity funds, said it has spent NZ$250 million ($152 million) on infrastructure in the main cities and will offer national coverage by connecting through Vodafone's GSM network.

The telecommunications regulator has previously looked into the cost and competition within the mobile sector, but stopped short of recommending price or other controls.

Telecom NZ will launch its new GSM-based mobile network at the end of this month. ($1=NZ$1.65)