Spark New Zealand
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Telecommunications | |
Predecessor | New Zealand Post Office |
---|---|
Founded | 1 April 1987 |
Headquarters | Auckland, New Zealand |
Area served | New Zealand |
Key people |
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Services | |
Revenue | NZ$3,531,000,000 (2015)[2] |
NZ$962,000,000 (2015)[2] | |
NZ$375,000,000 (2015)[2] | |
Total assets | NZ$3,207,000,000 (2015)[2] |
Total equity | NZ$1,778,000,000 (2015)[3] |
Number of employees | 5,562 (2016)[3] |
Divisions |
|
Website |
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 in 2014. It has operated as a publicly traded company since 1990. Spark's mobile network reaches 98% of New Zealand, with over 2.5 million mobile connections and 704,000 broadband connections[4]
Spark is one of the largest companies by value on the
Telecom New Zealand was formed in 1987 from a division of the
Spark has 63 retail locations around New Zealand, including 16 in Auckland.[8]
History
The Postal Services Act 1987 split the then
1990s
In 1990, Telecom was sold to two United States-based telecommunications companies,
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,
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]
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[12] Patricia Reddy was appointed to the Telecom board. She remained on it until 2008.[13] In September 2016 as Dame Patsy Reddy she became the Governor General of New Zealand.[citation needed]
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. [14]
In 1999, Telecom established a presence in Australia, buying 78% of
2000s
In 2000, Xtra signed up its 300,000th customer.[citation needed] Telecom also raised its shareholding in AAPT to 100%.[citation needed]
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.[15] 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,[16] $US200m as per Southern Cross's annual accounts.[17] 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]
In 2003, a new logo was launched.
In 2004, Telecom purchased Gen-i Ltd (in May) and Computerland Ltd (in September). The company had 36 retail stores around the country.[19] During the year, the company won the Roger Award for The Worst Transnational Corporation operating in New Zealand.[citation needed]
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.[20]
- 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.[21]
- Late May: Roderick Deane resigns as chairman, and is replaced by Wayne Boyd the following month.[citation needed]
- July: Matt Crockett is appointed CEO of Telecom's newly formed Wholesale division.[22]
- All Computerland branches around New Zealand are rebranded as Gen-i.[citation needed]
- 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]
- 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.[23][24]
- 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]
- 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]
- 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]
- 28 June: Telecom announced that Paul Reynolds, CEO of BT Wholesale, has been selected as the new CEO, to start on 27 September.[25] Simon Moutter was appointed as acting CEO in the interim.[26]
- 30 June: Theresa Gattung steps down as CEO,[27] with a reported leaving payment of $5.125 million.[28]
- 27 September: Dr Paul Reynolds starts as CEO of Telecom.[citation needed]
- In November 2007, the Boost Mobile brand was discontinued in New Zealand by Telecom.[citation needed]
- 21 November: Mark Ratcliffe, Chief Operating Officer for Technology, is appointed CEO of Telecom's soon-to-be spun off network division.[citation needed]
- 2008
- 16 January: Telecom announces the formation of Chorus, its new network infrastructure division.[29][30]
- 31 March: Telecom officially separates into three divisions (Chorus, Telecom Wholesale, Telecom Retail)[citation needed]
- 1 April: Russ Houlden, a colleague of Reynolds at BT, is appointed Chief Financial Officer. He replaces Marko Bogoievski, who joined Infratil.[citation needed]
- 2009
- 12 January: Telecom announces the closure of its online retail store Ferrit.[20]
- 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.[31][32]
In October a new logo was announced.[citation needed]
2010s
- 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]
- 2011
- 24 May: Crown Fibre Holdings announced that Telecom had been successful in partnering with the Government to build a fibre network.[citation needed]
- 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.[33]
- 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]
- 2013
- 9 December: Telecom announces sale of AAPT for A$450 million[34]
- 2014
- 21 February: Telecom announces a name change to 'Spark', which took effect on 8 August 2014[35] to better reflect the company's new direction and aspirations.[7]
- 25 June 2014: Spark announce
- 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]
- 5–7 September: Spark experiences nationwide outages due to a celebrity photos leaked in August.[38]
- 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.[39]
- 7 December: Spark purchased a South Island based IT services firm, Computer Concepts Ltd, for $50 million NZD.[40]
- 2019
- 14 March: Spark launched its subscription based sports streaming service Spark Sport.[41] 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]
- 19 December: It was announced that Spark would be selling its Lightbox streaming service to the satellite television company
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.[45]
Mobile network
Telecom started the first cellular network services 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 and set the bar for service performance for many years.[citation needed]
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]
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]
In 2005, a
On 31 March 2007, the 025
In December 2009
In April 2010, Telecom released its first
On 31 July 2012, the Telecom
In September 2013, Telecom officially launched new Ultra Mobile branding and plans. These plans include a free 4G upgrade (4G was made available later in November 2013) with a 1GB of data per day from Telecom WiFi hotspots.[55] In October 2013, Telecom sought clearance to acquire management rights for parts of the 700 MHz spectrum with the intention of aiding in the development of its 4G mobile network.[56]
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]
In a decision by the Government on 3 May 2006, Telecom was forced to unbundle the
The company was then affected by a series of other government decisions. Firstly, in early-June 2006 the
On 27 June 2006, the company announced that it would voluntarily separate its business into two separate operating business units – Wholesale and Retail.[64] 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.[65]
In January 2012 Telecom launched a new Mobile Network aimed at the youth market named Skinny Mobile.[66]
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.[67]
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.[68][69]
Spark offers
Spark Mobile
Spark NZ is New Zealand's largest
Telecom originally operated a TDMA (
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]
This section needs additional citations for verification. (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.[71]
In 2021, it was estimated that Spark NZ held a 41% market share in New Zealand.[72]
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]
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
Developer | Spark New Zealand |
---|---|
Type | Streaming media |
Launch date | 14 March 2019 |
Discontinued | 30 June 2023 |
Website | www |
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.[73][74] 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.[75]
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.[76]
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.[77] 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 provider Gravity Media provided the equipment to cover Spark's coverage, brought over from Australia, while 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 outside broadcast company On Site Broadcasting (OSB) from Sky in 2020.[citation needed]
Spark Sport was the host broadcaster for the 2021 Rugby World Cup held in New Zealand.[78]
Spark had previously broadcast sport through its subscription video on-demand service
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.
Previously held sports rights
- Rugby union
- 2019 Men's Rugby World Cup
- 2021 Women's Rugby World Cup[82]
- European Rugby Champions Cup
- United Rugby Championship
- Manu Samoa home games
- Ikale Tahi Tonga home games
- Football
- 2020 UEFA Euro
- 2022 UEFA Women's Euro[83]
- UEFA Nations League[83]
- UEFA Champions League[83]
- UEFA Europa League[83]
- UEFA Europa Conference League[83]
- UEFA Super Cup[83]
- UEFA Women's Champions League[83]
- 2021 Copa America
- 2022 Copa America Femenina
- Copa Libertadores
- Copa Sudamericana
- Recopa CONMEBOL
- CONMEBOL World Cup Qualifying
- Premier League
- Women's Super League
- FA Cup
- FA Community Shield
- EFL Cup
- Women's FA Cup
- Cricket
- New Zealand Cricket[84]
- Home internationals
- Women's Super Smash[84]
- The Ford Trophyfinal
- England and Wales Cricket Board[84]
- Home internationals
- The Hundred[84]
- Vitality Blast[84]
- Royal London One-Day Cup final[84]
- Highlights from ICC events.
- Motorsport
- Formula One + Junior Series (F2, F3)
- World Rally Championship + Other Series (WRC2, WRC3)
- MotoGP+ Junior Series (Moto2, Moto3)
- DTM
- Porsche Supercup
- World Rallycross Championship
- EuroFormula Open Championship
- European Le Mans Series
- International GT Open
- Toyota Racing Series
- Rugby league
- 2021 Men's Rugby League World Cup[85]
- 2021 Women's Rugby League World Cup[86]
- 2021 Wheelchair Rugby League World Cup[87]
- 2021 Physical Disability Rugby League World Cup[88]
- Hockey
- Tennis
- WTA Tour events excluding events played in New Zealand.
- Other Sports
- Horse racing via TAB Trackside channels
- MLB
- NFL
- NBAvia NBA TV
- UFCpay-per-view events
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]
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.[
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] 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]
Telecom claimed[92] 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.[93]
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.[94] 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.[95][96] 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]
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.[97] Telecom and Yahoo! automatically reset tens of thousands of users' passwords.[98] In April, Telecom announced that despite the issue, it would keep Yahoo! on as an email provider.[99] Problems with Telecom's YahooXtra email continued into December 2013 and further into 2014 with the latest problems reported on 10 January.[100] They later moved their mail service to SMX, a New Zealand-based provider, in May 2017.[101]
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- ^ "Stream Rugby League World Cup 2021 🏉 Live and On-Demand – Spark Sport NZ". Spark Sport. Retrieved 5 October 2022.
- ^ Saarinen, Juha (18 July 2005). "ISPs formally complain to Commerce Commission".
- ^ "The Consumer Complete Ass Awards 2006", 31 January 2007, Press Release: Consumer's Institute
- ^ "The Roger Award".
- ^ Nowak, Peter (25 October 2005). "Free calls mean less broadband — Telecom". The New Zealand Herald.
- ^ Nowak, Peter (31 October 2005). "OECD takes shot at Telecom". The New Zealand Herald.
- ^ Nowak, Peter (8 February 2006). "PM joins critics of internet monopoly". The New Zealand Herald.
- ^ Nowak, Peter (24 March 2006). "Open up access, says 'internet evangelist'". The New Zealand Herald.
- ^ Bell, Stephen (28 March 2006). "Cerf wary of biased broadband business models". Computerworld.
- ^ "Telecom rush to fix hack". 3 News NZ. 11 February 2013.
- ^ "Telecom defends email reset operation". 3 News NZ. 18 February 2013. Archived from the original on 1 February 2014. Retrieved 4 April 2013.
- ^ "Telecom sticks with Yahoo email". 3 News NZ. 5 April 2013.
- ^ "Telecom probes fresh YahooXtra email virus". 10 January 2014.
- ^ "Spark replaces Yahoo with SMX Managed Messaging email solution". 2 May 2017.
External links
- Official website
- Spark Foundation