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{{short description|Telecommunications company in New Zealand}}
{{Infobox_Company |
{{Multiple issues|
company_name = Telecom New Zealand |
{{Advert|date=November 2019}}
company_logo = [[Image:Telecom.svg|200px]] |
{{More citations needed|date=November 2019}}
company_type = [[Public company|Public]]|
company_slogan = Keep in touch |
foundation = 1987 |
___location = [[Wellington, New Zealand]]|
key_people = [[Theresa Gattung]], CEO (until 30 June 2007)<br />[[Wayne Boyd]], Chairman<ref>[http://www.telecom.co.nz/content/0,8748,200652-1548,00.html Telecom Board of Directors]</ref>|
num_employees = 6,500+ in New Zealand<br>2,000 in Australia|
products = Telecom|
homepage = [http://www.telecom.co.nz telecom.co.nz]|
industry = [[Telecommunications]]|
revenue = [[New Zealand dollar|NZ$]]5,605 million (2005)
 
}}
{{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 company|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<ref>{{cite web|url=http://www.spark.co.nz/online/about/our-company/leadership|title=Company Leadership}}</ref>|[[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 = [[Telecommunication]]s
| products =
| services = {{unbulleted list|[[Telephony|Fixed telephony]]|[[Mobile phone|Mobile telephony]]|[[Internet service provider|Internet access]]|[[Leased line]]s|[[Network service provider|Data transmission]]|ICT services|[[Video on demand|Streaming video on demand]]|[[Home automation]]}}
| revenue = {{decrease}} [[New Zealand dollar|NZ$]]3,861,000,000 (2024)<ref name="2024finance">{{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}}</ref>
| operating_income = {{decrease}} NZ$1,163,000,000 (2024)<ref name="2024finance" />
| net_income = {{decrease}} NZ$316,000,000 (2024)<ref name="2024finance" />
| aum =
| assets = NZ$1,070,000,000 (2024)<ref name="2024finance" />
| equity = NZ$1,590,000,000 (2024)<ref name="2024finance"></ref>
| owner =
| num_employees = 5,291 (2024)<ref name="2024finance" />
| 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 [[plain old telephone service|telephone service]]s, [[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.<ref name="newsman">{{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}}</ref> 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<ref>{{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}}</ref>
 
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]].<ref name="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]] }}</ref> 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 [[privatisation|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 Limited|Chorus]], the [[telecommunications network|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.<ref>{{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}}</ref>
'''Telecom New Zealand''' {{Nzx|TEL}} {{asx|TEL}} {{nyse|NZT}} is a [[Wellington]]-based [[telephone company]] run as a publicly-traded private company since 1990. It is also New Zealand's second largest [[mobile phone|mobile]] operator. Telecom is the largest company by value on the [[New Zealand Exchange Ltd|New Zealand Exchange]] (NZX) and movements in its share price have a great influence on the index of movements in the top 50 companies.
 
Spark has 63 retail locations around New Zealand, including 16 in Auckland.<ref name="Spark">{{cite web |title=Spark |url=https://www.spark.co.nz |website=spark.co.nz |publisher=Spark New Zealand}}</ref>
Telecom was formed in 1987 from a division of the [[New Zealand Post Office]] and [[privatisation|privatised]] in 1990. The selling price is still considered by many to be extremely low, given that Telecom had a [[monopoly]] of all phone lines in [[New Zealand]] at the time. Others consider that the capital requirements to modernise the network were better provided by private enterprise than the government.
 
==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 [[Australia and New Zealand Banking Group|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.<ref>{{cite web|url=http://elsa.berkeley.edu/~woroch/finishing.pdf|title=Telecommunications reform in NZ}}</ref>
===1987===
* The New Zealand Post Office divests itself of the newly created Telecom which was created as a State Owned Enterprise (SOE) on [[March 31]] [[1987]].
* The Government-owned Telecom Corporation is to have a commercial focus. It purchases telecommunications assets of the Post Office for NZ$3.2 billion and work begins on improving the services and network.
* Telecom launches its 025 mobile network and CDPD mobile data network. The New Zealand [[telecommunications]] market is progressively deregulated.
 
===19901990s===
*In 1990, Telecom iswas sold to two [[United States]]-basedStates–based [[telecommunications]] companies, [[Bell Atlantic|Verizon Communications (formerly Bell Atlantic)]] and [[Ameritech]], for NZ$4.25 &nbsp;billion.<ref>{{cite [web|url=http://www.telecom.co.nz/content/0,8748,200633-1548,00.html#20013149].|title=History Theand twoquick companiesfacts|publisher=Telecom todayNZ}}</ref> stillAfter haveTelecom part-ownershipwas ofprivatized, the Kiwi Share agreement was drawn up, which included a provision that the company retained free local calling for residential customers.<ref>{{Factcite 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=February16 January 2007|website=The Sydney Morning Herald|access-date=26 March 2020}}.</ref>
 
In 1991, Telecom listed on the New Zealand, Australian and New York stock exchanges. The following year Telecom implemented a NZ$200&nbsp;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 (finance)|share]] in Telecom to a combined 49.6% and BellSouth New Zealand Limited ([[BellSouth]]), subsequently acquired by [[One NZ|Vodafone]], set up the first [[mobile network]] to compete with Telecom.{{Citation needed|date=November 2023}}
* [[Clear Communications]] (now [[TelstraClear]]), begins the first network to compete with Telecom.
 
[[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 (ISP)|Xtra]].{{Citation needed|date=November 2023}}
* The [http://www.med.govt.nz/templates/Page____4166.aspx Kiwi Share] agreement is drawn up and part of this agreement retains free local calling for residential customers.
 
1997 saw Telecom buy back NZ$1&nbsp;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.
===1991===
* Telecom lists on the [[New Zealand]], [[Australian]] and [[New York]] stock exchanges.
 
In December 1997<ref>{{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}}</ref> Patricia Reddy was appointed to the Telecom board. She remained on it until 2008.<ref>{{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}}</ref> In September 2016 as [[Patsy Reddy|Dame Patsy Reddy]] she became the Governor General of New Zealand.{{Citation needed|date=November 2023}}
===1992===
* Telecom implements a NZ$200 million dollar fibre-optic cable connection between [[Australia]] and New Zealand.
 
In 1998, [[Southern Cross Cable|Southern Cross Cables Limited]] (half owned by Telecom) announced plans to build a fibre-optic cable linking New Zealand with Australia and North America.
===1993===
Vodafone Group bought BellSouth and started a campaign to attract Telecom customers to its network.<ref>{{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}}</ref>
* Ameritech and Bell Atlantic reduce their [[shares]] in Telecom to a combined 49.6%.
* [[BellSouth]] (now [[Vodafone]]) sets up the first [[mobile network]] to compete with Telecom.
 
In 1999, Telecom established a presence in Australia, buying 78% of [[AAPT Limited|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}}
===1995===
* [[Clear Communications]] reaches an agreement on local service interconnection.
* Telecom creates First Media Ltd to develop a cable television network across Auckland and Wellington, called [[First TV]]
 
===19962000s===
[[File:Telecom logo NZ old.gif|thumb|right|The original Telecom logo|400px]]
* Telecom establishes a [[telephone exchange]] in the [[United States]] for international traffic.
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}}
* [[Telstra New Zealand Limited]] (now TelstraClear) sets up operations in the New Zealand business market.
* Telecom launches an [[Internet Service Provider]], [[Xtra (ISP)|Xtra]], which is New Zealand's largest internet service provider today.
 
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.<ref>{{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}}</ref> 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 Cable]]s paid Telecom $263&nbsp;million in dividends as per (note 2 of) Telecom's 2001 annual accounts,<ref>{{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}}</ref> $US200m as per Southern Cross's annual accounts.<ref>{{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}}</ref> Southern Cross opened for (limited) business in November 2000 and its income from operations to 30 June 2001 was only $US13&nbsp;million ($US55&nbsp;million for the 2002 year). Southern Cross were insolvent to the extent of $US24&nbsp;million as at 30 June 2000 and this increased to $US280&nbsp;million as at June 2001 as a result of the dividends and other (net) expenses ($328&nbsp;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}}
===1997===
* [[Saturn Communications Limited]] (now TelstraClear) enters the residential phone market in Wellington.
* Telecom buys back NZ$1 million of its shares.
 
In 2003, a new logo was launched.<ref>{{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}}</ref>{{better source needed|date=July 2015}}
===1998===
* Ameritech sells down its 24.8% shareholding in an international public offering.
* Bell Atlantic issues exchangeable notes that are convertible into the Telecom shares that it owns.
* Telecom celebrates 500,000 mobile customers connected to its mobile network.
* Southern Cross Cables Limited, half owned by Telecom, announces plans to build a fibre-optic cable linking New Zealand with Australia and North America.
* [[Vodafone]] New Zealand buys BellSouth and starts a campaign to attract Telecom customers to its network.
 
In 2004, Telecom purchased Gen-i Ltd (in May) and Computerland Ltd (in September). The company had 36 retail stores around the country.<ref name="spark-2004">{{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}}</ref> During the year, the company won the [[Roger Award]] for The Worst Transnational Corporation operating in New Zealand.{{Citation needed|date=November 2023}}
===1999===
* Telecom establishes a presence in Australia, buying 78% of [[AAPT]], Australia's third-largest telecommunication company.
* Telecom upgrades its nationwide payphone network to smart card technology.
* Telecom's fast Internet service based on [[ADSL]] technology, called [[JetStream]], is launched and rolled-out progressively in local exchanges.
* Telecom begins charging customers who connect to the Internet using a local dial up number forcing all ISPs in New Zealand to change to an 0867 dial up number. Many consumers complain that this is in breach of Telecom's Kiwishare Agreement where residential customers are allowed free local calling.
 
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 [[New Zealand dollar|NZ$]]916&nbsp;million. The company also launched online retail store Ferrit launches with about 150 retailers.<ref name=Ferrit>{{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}}</ref>
===2000===
* Xtra signs up its 300,000th customer.
* Telecom Mobile, the mobile division of Telecom, celebrates 1,000,000 customers connected to its mobile network.
* The [[Politics of New Zealand|New Zealand Government]] conducts a comprehensive review of the regulatory regime.
* Telecom raises its AAPT shareholding to 100%.
* Telstra merges New Zealand operations with Saturn to form TelstraSaturn Limited.
 
;2006
===2001===
* 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.<ref>{{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}}</ref>
* The Government passes the Telecommunications Act, setting up a Telecommunications Commissioner.
* Late May: Roderick Deane resigns as chairman, and is replaced by Wayne Boyd the following month.{{Citation needed|date=November 2023}}
* Telstra buys Clear Communications to form [[TelstraClear]].
* July: Matt Crockett is appointed CEO of Telecom's newly formed Wholesale division.<ref>{{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]] }}</ref>
* All Computerland branches around New Zealand are rebranded as Gen-i.{{Citation needed|date=November 2023}}
 
;2007
===2004===
* 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}}<!--I have tried and failed to verify this from news sources. Nurg -->
* Telecom won the [[Roger Award]] for The Worst Transnational Corporation operating in New Zealand.
* 19 January: It is reported that Paritai Drive, [[Ōrākei]], one of the richest streets in [[Auckland]], is still not capable of receiving a [[broadband]] [[Digital subscriber line|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.<ref>{{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}}</ref><ref>{{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}}</ref>
* 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.<ref>{{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}}</ref> [[Simon Moutter]] was appointed as acting CEO in the interim.<ref>{{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]] }}</ref>
*30 June: Theresa Gattung steps down as CEO,<ref>{{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}}</ref> with a reported leaving payment of $5.125&nbsp;million.<ref>{{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}}</ref>
*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
===2005===
[[File:Chorus van Telecom New Zealand.jpg|thumb|right|A van with the Chorus livery.]]
* Telecom releases Bitstream, a 256kbit ADSL service sold at wholesale prices (at approximately 10% below the retail price) to other ISP's.
*16 January: Telecom announces the formation of Chorus, its new network infrastructure division.<ref>{{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}}</ref><ref>{{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]] }}</ref>
*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
* Telecom's mobile customers find out that their privacy and security is not safe on the Telecom network, when a [[phreaker]] named [[^god]] releases an [[exploit]] to the [[Mass media|media]] allowing access to almost anyone's [[voicemail]].
*12 January: Telecom announces the closure of its online retail store ''Ferrit''.<ref name=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.<ref>{{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}}</ref><ref>{{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]] }}</ref>
In October a new logo was announced.{{Citation needed|date=November 2023}}
 
===2010s===
* Telecom posts a profit of [[New Zealand dollar|$NZ]] 916 million.
[[File:Spark HQ Wellington.jpg|thumbnail|Spark's headquarters in Wellington]]
;2010
*November: Telecom moves into its newly built world HQ on Victoria St in the Auckland CBD. Costing the developer $280&nbsp;million, it will consist of 2700 staff and be the largest corporate move in New Zealand history.<ref>{{Cite web |last=Gibson |first=Anne |date=2010-07-20 |title=Telecom shifting thousands into $280m HQ |url=https://www.nzherald.co.nz/business/companies/telecommunications/telecom-shifting-thousands-into-280m-hq/X4PUO3VNOW6SACBKESZCTL57XM/ |access-date=2025-08-22 |website=NZ Herald |language=en-NZ}}</ref>
 
;2011
===2006===
*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}}
* [[May 3]]: The [[New Zealand Government]] announces that it will require Telecom to unbundle the [[local loop]] to provide "access to fast, competitively priced broadband internet".[http://tvnz.co.nz/view/page/411366/709992]
*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.<ref name="nbrspam">{{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}}</ref>
* [[May 4]]: [[New Zealand dollar|NZ$]] 1.1 billion of its [[market capitalisation]] was wiped off following the announcement. [http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10380243]
*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}}
* [[May 9]]: An audio clip recorded on March 2 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. [http://www.nzherald.co.nz/section/story.cfm?c_id=5&ObjectID=10380894]
* [[May 19]]: A video titled "Telecon" incorporating the May 9 audio clip and a dubbed Telecom ad was released. Telecom got it removed from [[YouTube]] but it is still available at other locations. [http://www.nzherald.co.nz/section/story.cfm?c_id=5&ObjectID=10383435] [http://67.18.149.106/~telecom/telecon-hires.mov 14MB Quicktime]
* [[June 27]]: Telecom announces it will voluntarily separate its business into two operating entities - Wholesale and Retail. [http://www.telecom-media.co.nz/releases_detail.asp?id=3325&page=index]
* [[November 28]]: The Telecommunications Amendment Bill is introduced to split Telecom into three business units, with network access separated from the wholesale and retail units. <ref name="TAB introduced">{{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}}</ref>
 
;2013
===2007===
*9 December: Telecom announces sale of AAPT for A$450&nbsp;million<ref>{{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}}</ref>
* [[January 16]]: 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.
* [[January 19]]: It is reported that one of the richest streets in [[Auckland]] is still not capable of receiving a [[Broadband]] [[DSL]] 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.
* [[February 2]]: Telecom announces Director and CEO [[Theresa Gattung]] will be stepping down effective 30 June 2007 and a search for a new CEO will begin immediately. [http://www.telecom-media.co.nz/releases_detail.asp?id=3414]
* [[February 5]]: Telecom announces that from March of 2007 they will begin rolling out [[ADSL2+]], more than a year after originally stated for roll out.
* [[March 31]]: The 025 [[Digital AMPS|D-AMPS cellular network]] is closed down.<ref>
{{cite news |title=Goodbye to 025 network |url=http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10431887 |publisher=[[New Zealand Herald]] |accessdate=2007-03-31}}</ref>
*[[April 1]]: All NZ telecommunications providers including Telecom introduce [[number portability]].
 
;2014
==Telecom Mobile==
*21 February: Telecom announces a name change to 'Spark', which took effect on 8 August 2014<ref>{{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}}</ref> to better reflect the company's new direction and aspirations.<ref name="newsman" />
'''Telecom Mobile''' is [[New Zealand]]'s second-largest [[mobile operator]], with about 49% [http://www.vodafone.co.nz/aboutus/12.1.1_facts_figures.jsp?item=facts] market-share, slightly behind [[Vodafone]]. Telecom used to operate [[AMPS]], Digital [[D-AMPS]]/[[Time division multiple access|TDMA]] and currently operates [[CDMA]]. AMPS and D-AMPS service was sold under the 025 brand and CDMA services are sold under the 027 brand. Telecom turned off the 025 network on 31 March [[2007]] [http://www.telecom.co.nz/content/0,8748,205317-201933,00.html?nv=tpd]. Most of its customers had migrated to the 027 network. The 027 CDMA EV-DO network is marketed as T3G, a 2 MB third-generation mobile system.
*25 June 2014: Spark announce [[Lightbox (New Zealand)|Lightbox]], an online movie and TV show streaming service, in competition with [[Netflix]] and [[Sky Television (New Zealand)|SkyTV]].<ref>{{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}}</ref> Lightbox went live on 27 August 2014.<ref>{{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}}</ref>
*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 [[August 2014 celebrity photo leaks|celebrity photos leaked in August]].<ref>{{cite web | url=http://www.stuff.co.nz/dominion-post/10468024/Nationwide-internet-outage-sparked | title=Spark broadband out nationwide | publisher=[[The Dominion Post (Wellington)|The Dominion Post]] | date=6 September 2014 | access-date=7 September 2014}}</ref>
 
;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.<ref>{{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}}</ref>
* 7 December: Spark purchased a [[South Island]]–based IT services firm, Computer Concepts Ltd, for $50&nbsp;million NZD.<ref>{{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}}</ref>
 
;2019
* 14 March: Spark launched its subscription based sports streaming service [[Spark Sport]].<ref>{{cite web|url=https://www.sparksport.co.nz/|publisher=Spark Sport|access-date=5 October 2022|title=Stream your Favourite Sports on Spark Sport}}</ref> 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 (New Zealand)|Sky Television]], which intends to merge Lightbox into its own online streaming service [[Sky Television (New Zealand)#Neon|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.<ref>{{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}}</ref><ref>{{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}}</ref><ref>{{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}}</ref>
 
===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.<ref>{{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}}</ref>
 
===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&nbsp;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&nbsp;million customers by 2000.{{Citation needed|date=November 2023}}
 
In 2005, a [[phreaker]] exposed a [[Exploit (computer security)|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.<ref>{{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 }}</ref>
 
On 31 March 2007, the 025 [[Digital AMPS|D-AMPS]] ("TDMA") cellular network was closed down.<ref>
{{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}}</ref> Then on 8 June of that year, Telecom Mobile announced plans to build a hybrid [[W-CDMA]]/[[UMTS]]-CDMA 850&nbsp;MHz network,<ref name="future">{{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 }}</ref> 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.<ref>{{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}}</ref>
 
In December 2009<ref>{{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}}</ref> and February 2010,<ref>{{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}}</ref><ref>{{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}}</ref> 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&nbsp;million compensation package for its customers.<ref>{{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}}</ref>
 
In April 2010, Telecom released its first [[Android (operating system)|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.<ref>{{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]]}}</ref>
 
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.<ref>{{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}}</ref> In October 2013, Telecom sought clearance to acquire management rights for parts of the 700&nbsp;MHz spectrum with the intention of developing of its 4G mobile network.<ref>{{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}}</ref>
 
Spark New Zealand along with fellow telecommunications companies [[2degrees]] and [[One NZ]] intend to end their [[2G]] and [[3G]] by 31 December 2025.<ref>{{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 (New Zealand newspaper)|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}}</ref>
 
===Industry regulation and company restructuring===
In 2000, the [[Politics of New Zealand|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|broadband internet]]".<ref>{{cite news|url=http://tvnz.co.nz/view/page/411366/709992|title=Govt announces broadband changes|date=3 May 2006|publisher=[[TVNZ]]}}</ref> The decision significantly affected the company's market share,<ref>{{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}}</ref> and allowed competitors (such as [[TelstraClear]], [[Orcon Internet Limited|Orcon]] and [[ihug]]) to offer [[broadband]] and other communications services throughout New Zealand by installing their own equipment in exchanges.<ref>{{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]] }}</ref><ref>{{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}}</ref> 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 [[New Zealand Business Roundtable|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]],<ref>{{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}}</ref> the [[Green Party of Aotearoa New Zealand|Green Party]]<ref>{{cite web|url=http://www.greens.org.nz/searchdocs/PR9776.html|title=Government moves on Telecom welcomed|author=NZ Greens}}</ref> and [[United Future]])<ref>{{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}}</ref> supported the decision, which would give the government at least 66 votes if there were no votes against the party line. The main opposition [[New Zealand National Party|National Party]] initially opposed the unbundling decision, but later voted in favour of it after a select committee hearing. This left the [[ACT New Zealand|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 [[One NZ|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 access|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.<ref name="separate">{{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}}</ref> 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.<ref name="TAB introduced">{{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]] }}</ref>
 
In January 2012 Telecom launched a new Mobile Network aimed at the youth market named Skinny Mobile.<ref>{{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}}</ref>
 
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.<ref>{{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}}</ref>
 
==Spark Broadband==
Spark is New Zealand's largest [[internet service provider]]. It was formerly named [[Xtra (ISP)|Xtra]]. The next largest ISP in the New Zealand market is [[One NZ]], a position it acquired when it purchased [[TelstraClear]] in 2012.<ref>{{cite web|url=https://one.nz/broadband/internet-services/#telstraclear |title=Vodafone acquires TelstraClear|publisher=Vodafone}}</ref><ref>{{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 }}</ref>
 
Spark offers [[asymmetric digital subscriber line]] (ADSL), [[very-high-bit-rate digital subscriber line]] (VDSL), [[fiber to the premises|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%.<ref>{{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}}</ref> Telecom's mobile network was branded as "XT", and operates at 850&nbsp;MHz nationwide (with some 2100&nbsp;MHz overlay in urban areas), and delivers 3G data connectivity wherever there is coverage.{{Citation needed|date=November 2023}}
 
Telecom originally operated a TDMA ([[Advanced Mobile Phone System|AMPS]], Digital [[D-AMPS]]/[[Time-division multiple access|TDMA]]) mobile network; this was superseded by its [[CDMA2000|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,<ref name="future" /> 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}}
The following shows customer numbers and market share information for Telecom Mobile, including both 025 and 027 customers (025 network has been shut down from March 31 2007). Since [[Vodafone New Zealand]] took over BellSouth in the late 1990s Telecom's market share has dropped every year.
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.<ref>{{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 }}</ref>
 
In 2021, it was estimated that Spark NZ held a 41% market share in New Zealand.<ref>{{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 }}</ref>
 
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}}
In 2005 Telecom launched New Zealand's first 3G network, using the brand name T3G. Being first into the 3G market, along with aggressive marketing and a $10 a month text message package, has allowed Telecom to claw back some market share from Vodafone. In November 2005 Telecom reported 72,000 new mobile phone customers, compared to 27,000 for Vodafone.
 
{| class="wikitable"
Line 139 ⟶ 224:
| 1,298,000
| 49.95%
|-
| March 2005
| 1,520,000 (approx)
| 44.6%
|-
| November 2005
Line 151 ⟶ 232:
|1,900,000
|49%
|-
|February 2010
|2,152,000
|44.4%
|-
|August 2012
|1,600,000
|32.2%
|-
|November 2015
|2,200,000
|40%
|}
 
==CriticismSpark Sport==
{{Infobox online service
While there are now many competitors in the cellular, toll-call and internet markets, Telecom continues to be criticised for using its status as a former general monopoly and current local-loop monopoly to charge high prices whilst providing, in some people's opinion, poor service; On XTRA Broadband it used to cost over $1200 to download 100GB of data in a month, plus monthly access fees (at residential rates, business was more expensive). Prices have since dropped as competition in the broadband market becomes stronger (for example, residential and business can now have an unlimited data plan for $44.40). The unlimited plans have since been removed as Telecom found it was unable to deliver the speeds promised. Traffic management was meant to be applied over p2p and related traffic, but was instead implemented over all traffic. It has proved difficult for other companies to establish residential services due to Telecom’s control of local loop services. Telecom has also leveraged its control of residential services to establish the country’s largest [[internet service provider|ISP]], [[Xtra (ISP)|Xtra]]
| name = Spark Sport
| title = Spark Sport
| logo = SparkSportLogo.png
| logo_size = 230px
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| developer = Spark New Zealand
| generation =
| type = [[Streaming media]]
| launched = 14 March 2019
| discontinued = 30 June 2023
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| website = {{URL|https://www.sparksport.co.nz/}}
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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.<ref>{{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}}</ref><ref>{{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}}</ref> 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 Grand Prix|2019 Australian F1 Grand Prix]].<ref>{{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}}</ref>
Competitors have alleged that Telecom engages in unfair practices to prevent them from gaining ground, for example by resellsing broadband capacity to Xtra at lower prices than to other ISPs.
 
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|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.<ref>{{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}}</ref>
In July [[2005]], two dozen [[Internet service provider]]s formally complained to New Zealand's Commerce Commission via a letter. [http://computerworld.co.nz/news.nsf/UNID/232444CFFD9ADC6ECC25703F0009B334?OpenDocument&pub=Computerworld] Notably absent from the list of signatories were Telecom’s ISP, Xtra, and several ISPs owned by its main competitor, [[TelstraClear]].
 
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.<ref>{{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}}</ref> 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 (cricketer)|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}}
===Telecom’s response===
In [http://www.nzherald.co.nz/section/story.cfm?c_id=5&ObjectID=10351794 an article] published on [[25 October]] [[2005]], Telecom claimed 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 internet experts and competitors disagreed and even the secretary of the OECD [http://www.nzherald.co.nz/topic/story.cfm?c_id=363&ObjectID=10352757 took a shot] at Telecom.
 
Spark Sport was the host broadcaster for the [[2021 Rugby World Cup]] held in New Zealand.<ref>{{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}}</ref>
===Late 2005, early 2006===
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 <ref>{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=5&ObjectID=10367253|title=PM joins critics of internet monopoly}}</ref>. This was followed by extensive criticism in the media such as in two high profile television programmes, in two episodes of ''[[Campbell Live]]'', during which Theresa Gattung was grilled by the [[John Campbell (broadcaster)|show’s host]], and an episode of the New Zealand edition of ''[[Sunday (TV series)|Sunday]]''. Critical articles have 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 <ref>{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10374148|title=Open up access, says 'internet evangelist'}}</ref> <ref>{{cite news|url=http://www.computerworld.com.au/index.php/id;1287275520;fp;4;fpid;78268965|title=Cerf wary of biased broadband business models}}</ref>. The New Zealand Government investigated whether it needed to force Telecom to unbundle the network, thereby allowing other companies access and improving broadband service for consumers.
 
Spark had previously broadcast sport through its subscription video on-demand service [[Lightbox (New Zealand)|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 a decision by the New Zealand Government on [[May 3]] [[2006]] - Telecom has been forced to unbundle the [[local loop]]. This will allow competitors (such as [[TelstraClear]] and [[Ihug]]) to offer [[broadband]] and other communications services throughout New Zealand by installing their own equipment in the exchanges. <ref>{{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}}</ref> <ref>{{cite news|url=http://www.bloomberg.com/apps/news?pid=10000081&sid=aAkS5cuhU0uQ&refer=australia|title=N.Z. Says Telecom Must Give Rivals Greater Access to Network}}</ref>. The announcement of this decision was rushed 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 budget 2006. Most of Telecom's competitors and many independent commentators such as [[InternetNZ]] and [[Paul Budde]] have applauded the decision. Legislation will have to be introduced to enable the regulatory changes. Three other political parties, [[New Zealand First]] <ref>{{cite news|url=http://www.scoop.co.nz/stories/PA0605/S00102.htm|title=NZ First Welcomes Telecom Competition}}</ref>, the [[Green Party of Aotearoa New Zealand|Green Party]] <ref>{{cite web|url=http://www.greens.org.nz/searchdocs/PR9776.html|title=Government moves on Telecom welcomed}}</ref> and [[United Future]] <ref>{{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}}</ref> all appear to support the decision which would give the government at least 66 votes if there are no votes against the party line.
 
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.<ref>{{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}}</ref> 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.<ref>{{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}}</ref> The [[Formula 1]] had moved to [[Sky (New Zealand)|Sky TV]] and [[Sky Sport (New Zealand)|Sky Sport]].<ref>{{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}}</ref>
 
===Previously held sports rights===
; Rugby union
* [[2019 Rugby World Cup|2019 Men's Rugby World Cup]]
* [[2021 Women's Rugby World Cup]]<ref>{{cite web|url=https://discover.sparksport.co.nz/tournaments/womens-rugby-world-cup|publisher=Spark Sport|access-date=5 October 2022|title=Watch the 2021 Women's World Cup on Spark Sport}}</ref>
* [[European Rugby Champions Cup]]
* [[United Rugby Championship]]
* [[Samoa national rugby union team|Manu Samoa]] home games
* [[Tonga national rugby union team|Ikale Tahi Tonga]] home games
 
; Football
* [[UEFA Euro 2020|2020 UEFA Euro]]
* [[UEFA Women's Euro 2022|2022 UEFA Women's Euro]]<ref name="Spark Sport">{{cite web|url=https://discover.sparksport.co.nz/sports/football|publisher=Spark Sport|access-date=5 October 2022|title=NZ's Home of UEFA Football on Spark Sport}}</ref>
* [[UEFA Nations League]]<ref name="Spark Sport"/>
* [[UEFA Champions League]]<ref name="Spark Sport"/>
* [[UEFA Europa League]]<ref name="Spark Sport"/>
* [[UEFA Europa Conference League]]<ref name="Spark Sport"/>
* [[UEFA Super Cup]]<ref name="Spark Sport"/>
* [[UEFA Women's Champions League]]<ref name="Spark Sport"/>
* [[2021 Copa América|2021 Copa America]]
* [[2022 Copa América Femenina|2022 Copa America Femenina]]
* [[Copa Libertadores]]
* [[Copa Sudamericana]]
* [[CONMEBOL Recopa|Recopa CONMEBOL]]
* [[2022 FIFA World Cup qualification (CONMEBOL)|CONMEBOL World Cup Qualifying]]
* [[Premier League]]
* [[FA Women's Super League|Women's Super League]]
* [[FA Cup]]
* [[FA Community Shield]]
* [[EFL Cup]]
* [[Women's FA Cup]]
 
; Cricket
* [[New Zealand Cricket]]<ref name="discover.sparksport.co.nz">{{cite web|url=https://discover.sparksport.co.nz/sports/cricket|publisher=Spark Sport|access-date=5 October 2022|title=Stream Cricket Live & On-Demand – Spark Sport NZ}}</ref>
** Home internationals
** [[Men's Super Smash]] and [[Women's Super Smash]]<ref name="discover.sparksport.co.nz"/>
** [[The Ford Trophy]] final
* [[England and Wales Cricket Board]]<ref name="discover.sparksport.co.nz"/>
** Home internationals
** [[The Hundred (cricket)|The Hundred]]<ref name="discover.sparksport.co.nz"/>
** [[T20 Blast|Vitality Blast]]<ref name="discover.sparksport.co.nz"/>
** [[Royal London One-Day Cup]] final<ref name="discover.sparksport.co.nz"/>
* Highlights from ICC events.
 
; Motorsport
* [[Formula One]] + Junior Series (F2, F3)
* [[World Rally Championship]] + Other Series (WRC2, WRC3)
* [[MotoGP]] + Junior Series (Moto2, Moto3)
* [[Deutsche Tourenwagen Masters|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]]<ref>{{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}}</ref>
* [[2021 Women's Rugby League World Cup]]<ref>{{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}}</ref>
* [[2021 Wheelchair Rugby League World Cup]]<ref>{{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}}</ref>
* [[2021 Physical Disability Rugby League World Cup]]<ref>{{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}}</ref>
 
; Hockey
* [[Men's FIH Pro League|Men's Pro League]]
* [[Women's FIH Pro League|Women's Pro League]]
 
; Tennis
* [[Women's Tennis Association|WTA]] Tour events excluding events played in New Zealand.
 
; Other Sports
* [[Horse racing]] via [[TAB Trackside]] channels
* [[MLB]]
* [[NFL]]
* [[NBA]] via NBA TV
* [[UFC]] pay-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|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 provider]]s formally complained to New Zealand's Commerce Commission via a letter.<ref>{{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}}</ref> 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 of New Zealand|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".<ref>[http://www.scoop.co.nz/stories/BU0701/S00281.htm "The Consumer Complete Ass Awards 2006"], 31 January 2007, Press Release: Consumer's Institute</ref> 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.<ref>{{cite web|url=http://canterbury.cyberplace.co.nz/community/CAFCA/publications/Roger/index.html|title=The Roger Award}}</ref>
Following the events of May 2006 the company was hit by a series of other decisions. Firstly, the Commerce Commission announced that it would rule on the contentious issue of mobile telephone termination charges. Then, in early-June, the Commission announced that calls between a landline and a mobile phone within a geographically defined boundary could be connected free of termination charges. The ruling allows [[Vodafone]] to establish a mobile phone product which can also provide free local calling, in direct competition with a product for which Telecom has long had a monopoly (The government, when it sold Telecom, enshrined free residential local calling as something it must continue with). 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.
 
The [[New Zealand Treasury]] once estimated the economic loss from Telecom's (now former) monopoly to be in the region of $50–$250&nbsp;million a year.{{citation needed|date=December 2012}} Another study commissioned in 1998 by competitor Clear (later [[TelstraClear]]) estimated that the loss was $400&nbsp;million a year. At a retail level Telecom now faces competition in all areas&nbsp;— 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}}
Finally, the company announced the voluntary separation of its business into two separate entities - Wholesale and Retail <ref>{{cite web|url=http://www.telecom-media.co.nz/releases_detail.asp?id=3325&page=index|title=TELECOM TO SEPARATE WHOLESALE AND RETAIL OPERATIONS}}</ref>
 
Telecom claimed<ref>{{cite news|url=http://www.nzherald.co.nz/section/story.cfm?c_id=5&ObjectID=10351794|title=Free calls mean less broadband&nbsp;— Telecom|date=25 October 2005|work=[[The New Zealand Herald]] |first=Peter|last=Nowak}}</ref> 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.<ref>{{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}}</ref>
The Government introduced the Telecommunications Amendment Bill in November 2006 to force Telecom to open its network to competitors. If passed, the bill will split Telecom into three business units, with network access separated from the wholesale and retail units. <ref name="TAB introduced" />
 
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.<ref>{{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]] }}</ref> 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 (broadcaster)|John Campbell]], and an episode of the New Zealand edition of ''[[Sunday (New Zealand TV programme)|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&nbsp;— 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.<ref>{{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}}</ref><ref>{{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}}</ref> 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}}
===2007===
On [[February 1]] [[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".<ref>{{cite web | title = Supreme Ass Award goes to Xtra broadband | work = Stuff.co.nz | url = http://www.stuff.co.nz/northland/3946972a10.html | date = [[2007-02-01]]}}</ref>
 
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.<ref>{{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}}</ref> Telecom and Yahoo! automatically reset tens of thousands of users' passwords.<ref>{{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 }}</ref> In April, Telecom announced that despite the issue, it would keep Yahoo! on as an email provider.<ref>{{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}}</ref> Problems with Telecom's YahooXtra email continued into December 2013 and further into 2014 with the latest problems reported on 10 January.<ref>{{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}}</ref> They later moved their mail service to SMX, a New Zealand-based provider, in May 2017.<ref>{{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 }}</ref>
==Effects of monopoly==
The [[New Zealand Treasury]] once estimated the economic loss from Telecom's (now former) monopoly to be in the region of $50&ndash;$250 million a year. Another study commissioned in [[1998]] by competitor Clear (now [[TelstraClear]]) estimated that the loss was $400 million a year. Telecom now faces competition in all areas- cellular, internet, toll-calls and, subject to ongoing developments, in local calling.
 
== References ==
{{Reflist}}
<div class="references-small">
<references/>
 
==External links==
*[http://www.telecom.co.nz/{{commons Telecomcategory|Spark New Zealand Website]}}
*[ {{official website|http://www.xtraspark.co.nz/ Telecom's ISP Xtra]}}
*[http://biz.yahoo.com/ic/48/48022.html Yahoo! - Telecom Corporation of New Zealand Limited Company Profile]
*[http://www.youtube.com/watch?v=E0oy1eiyOZY Telecon - Telecom Parody]
 
{{New Zealand mobile phone companies}}
[[Category:Companies of New Zealand]]
{{Major telecommunications companies}}
[[Category:Communications in New Zealand]]
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{{S&P/ASX 200}}
{{VOD services}}
{{Retailers in New Zealand}}
{{Authority control}}
 
[[Category:Companies based in Auckland]]
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[[Category:Companies listed on the New Zealand Exchange]]
[[Category:Companies in the S&P/NZX 50 Index]]
[[Category:Consumer electronics retailers of New Zealand]]
[[Category:Cross-listed companies]]
[[Category:Mobile phone companies of New Zealand]]
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[[Category:Telecommunications companies established in 1987]]
[[Category:Telecommunications companies of New Zealand]]
[[Category:New Zealand companies established in 1987]]