2degrees to take over Now New Zealand business customers

2degrees has agreed to migrate the business customers of Now New Zealand as Now closes its business operations.

Under the agreement, Now's business customers will move to 2degrees over the coming months. The customer base includes small and medium-sized businesses as well as larger companies, with services spanning broadband, voice, mobile and cloud products.

The deal gives 2degrees access to a business customer base with a strong presence in regional New Zealand, particularly in Hawke's Bay, the Bay of Plenty and Waikato. Preparations for the migration are already under way.

Customers who move will keep their current business plan pricing. 2degrees will contact them directly with details on the timing of their migration and any changes to terms and conditions.

Businesses that do not want to move to 2degrees can opt out and arrange another provider before Now's customer operations cease.

The agreement adds to competition for business telecommunications customers in New Zealand, where providers are seeking growth beyond the consumer mobile market. Regional customers are particularly important in that effort because they often buy several services from a single provider.

For 2degrees, the transaction broadens its footprint among business users outside the main urban centres. The company already sells broadband, mobile and electricity services across New Zealand and has been expanding its position in business communications.

Mark Callander, Chief Executive Officer of 2degrees, said the company had experience handling transfers of this kind.

"We're very pleased to have been chosen to support Now's business customers and look forward to welcoming them to 2degrees. We know how important reliable connectivity is to businesses. Our priority is to ensure the transition is as seamless as possible, with clear communication and dedicated support throughout the process. We have extensive experience managing customer migrations of this scale and complexity, so we know what's required to get it right: careful planning, strong execution, and making sure our people and systems are ready to support customers every step of the way," Callander said.

Now's business base includes many companies in regional communities where 2degrees already has a presence. That overlap may help limit disruption during the handover, especially for customers using several communications services under one account.

Regional focus

The concentration of customers in Hawke's Bay, the Bay of Plenty and Waikato highlights the value of provincial markets in New Zealand's business telecoms sector. These regions include a mix of agriculture, logistics, professional services and local retail businesses that depend on fixed and mobile communications links.

Maintaining existing pricing may also ease the move for customers deciding whether to stay with the incoming provider. Pricing continuity can remove one source of uncertainty during a migration, although customers will still need to review any revised contractual terms.

Callander said the agreement would strengthen 2degrees' position in those markets.

"Now has built a strong customer base that includes many successful Kiwi businesses, many of them in regional communities where we already have a strong presence. We're looking forward to building relationships with these businesses and demonstrating the value that 2degrees can offer through reliable connectivity, exceptional service and a team that understands what it takes to keep their business moving," he said.