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Wholesale Partnership Business Case

Executive Summary

The success of any wholesale telecommunications partnership ultimately depends on two things: the partner's ability to consistently acquire and retain profitable customers, and their ability to operate independently without placing unnecessary demands on the wholesale provider.

Most MVNOs begin with access to a network and then attempt to build a customer base through advertising. Growth is therefore constrained by marketing budgets, rising customer acquisition costs and intense price competition.

Sacred Health has taken a fundamentally different approach.

Over the past several years, we have invested in building a scalable customer acquisition platform before entering telecommunications. Through contracted distribution partners, owned media, recurring customer relationships and a highly engaged community, we have created an acquisition engine capable of introducing new households without relying on traditional advertising.

At the same time, we have built the technical and operational capability expected of a premium wholesale partner. We have demonstrated our ability to develop API-integrated platforms, deliver a premium customer experience through sophisticated customer-facing systems, and operate successfully within one of New Zealand's most highly regulated industries, where customer service, compliance and operational discipline are part of our everyday business.

We are not asking 2degrees to support another telecommunications startup.

We are offering a partner that brings subscribers, not overhead—a business with a proven customer acquisition engine and the capability to stand on its own feet while supporting 2degrees' objective of growing market share.

The Market Problem

Network quality is no longer the primary challenge.

Spark, One New Zealand and 2degrees all operate mature national networks with competitive products and services.

The real challenge of a strong and independent partner is winning and retaining new customers.

Traditional MVNOs may enter the market with an existing customer base, but that audience has typically been built for another purpose. Whether building an audience from scratch or converting existing customers into long-term telecommunications subscribers still relies heavily on ongoing marketing, promotions and price-led offers.

That model is expensive.

Customer acquisition costs continue to rise while customer loyalty continues to fall. When advertising slows, growth slows.

For wholesale providers, this creates unnecessary risk.

The strongest wholesale partners are not those with the best logo or the lowest prices. They are the partners capable of consistently bringing new households onto the network while retaining them over the long term. growth partner, not a support burden.

Our Competitive Advantage

Sacred Health was built around customer acquisition.

Long before considering telecommunications, we developed a business that consistently attracts, engages and retains customers through recurring relationships rather than paid advertising.

Our model combines several powerful assets:

• A growing network of contracted organisations that actively introduce our products and services to their communities.

• A growing network of podcaster and influencers that actively introduce our products and services to their followers.
  
  

• A professional media operation producing ongoing podcasts, interviews and educational content that continually engages those audiences.

• Direct relationships with customers through subscriptions, email, social media and owned digital channels.

• Commercial incentives that reward our partners for long-term customer growth rather than one-off referrals.

Every new organisation we contract expands our distribution capability.

Every new piece of content strengthens customer engagement.

Every new customer becomes part of an ongoing relationship rather than a single transaction.

Unlike traditional marketing campaigns, these assets continue generating customers long after they have been created.

The Numbers

The commercial model is designed to scale through distribution rather than advertising.

Today, our combined ecosystem already reaches more than 100,000 highly engaged New Zealanders through customers, partner organisations, advocacy groups, podcasts, newsletters and owned media channels.

Unlike traditional customer acquisition, every new organisation that joins the platform expands our distribution capability. Rather than increasing advertising spend, we increase the number of contracted partners actively introducing our services to their own communities.

Each additional partner contributes:

• Access to an established audience.
• A recurring communication channel.
• An ongoing incentive to continue generating new customers.

As the network grows, so does our acquisition capacity.

Importantly, there is no practical limit to the number of organisations that can participate. Charities, sporting bodies, churches, membership organisations, advocacy groups, creators, community organisations and professional associations all represent potential long-term distribution partners.

This creates an acquisition model capable of expanding well beyond Sacred Health itself.

Our ambition is not to build a business serving tens of thousands of customers. It is to build New Zealand's largest trust-based distribution network, capable of introducing hundreds of thousands of households to the 2degrees ecosystem over time.

Why It Works

Our model succeeds because every participant benefits.

Partner organisations receive recurring revenue that strengthens their own operations.

Their audiences discover products and services through organisations they already follow.

Sacred Health acquires long-term customers without continually purchasing advertising.

2degrees gains access to a scalable customer acquisition channel capable of delivering recurring household customers.

Unlike advertising, where investment must continually increase to maintain growth, our distribution network becomes more valuable every time another organisation joins the platform.

Each additional partner increases the reach of the entire ecosystem.

Each additional customer strengthens recurring revenue.

Each additional relationship makes future growth easier.

The acquisition engine improves as it grows.

Why 2degrees Wins

2degrees has already invested heavily in building a national telecommunications network.

Sacred Health has invested heavily in building a scalable customer acquisition platform.

Together those capabilities are highly complementary.

Sacred Health brings:

• A scalable customer acquisition engine.

• Established relationships with highly engaged communities.

• API development capability and modern software integration.

• Customer-facing systems designed around premium customer experience.

• Proven customer service management.

• Experience operating within a highly regulated and compliance-focused industry.

• A long-term strategy focused on growing recurring household relationships rather than competing on price.

This allows 2degrees to partner with an organisation whose core strength directly supports its wholesale growth strategy.

Rather than funding another startup MVNO, 2degrees gains a commercially aligned partner with the capability to acquire, onboard and support customers at scale.

Next Steps

We hope you agree this opportunity warrants progression to the next stage of commercial evaluation and look forward to hearing your next steps.

we are especially interested in:

• A technical conversation to confirm platform integration and architecture.

• Commercial discussions around wholesale pricing and service structure.
  

• Development of an implementation roadmap toward launch.

Our objective is straightforward.

To become a long-term wholesale partner that delivers sustainable customer growth, strengthens the 2degrees network, and builds significant recurring value for both organisations.