ICT solutions provider, Huawei, has signed an agreement with New Zealand network operator, 2degrees, to deploy a 4G network in early 2014.
The partnership stems off Huawei’s previous engagement with 2degrees to deploy its 2G and 3G networks.
2degrees has secured a $165 million credit facility from the Bank of New Zealand (BNZ), enabling the company with a fully funded business plan, continued national network expansion and revenue growth.
“Having been cash flow positive for almost a year, 2degrees is able to fund its own operations without shareholder funding. Bank finance will accelerate the business,” 2degrees chairman and acting chief executive, Stewart Sherriff, said.
In addition to funding future investment needs including 4G deployment, Sherriff said the facility from BNZ will enable 2degrees to repay vendor finance from Huawei provided in February 2011.
“Huawei have provided us with a modern, high quality 2G and 3G network. They’ve always had an eye to the future and have helped us prepare for a fast transition to 4G, which is key to maintaining our value leadership position,” he claimed.
Huawei New Zealand CEO, Arthur Zhang, said the extension of the relationship between both companies is a hugely positive step for Huawei.
“The initial partnership with 2degrees was a significant milestone for Huawei. We have grown with 2degrees and share their vision for bringing positive change and innovation to the market,” Zhang said.
In addition, Sheriff claimed that the bank finance will also help the company deliver services that vary from its competitors.
“2degrees has the people and the plan to build infrastructure and services that will grow the business further,” he added.