2degrees will invest $100 million in its network over the next two years.
The mobile phone operator will build more cellphone towers using Chinese company Huawei, which built 2degrees original network.
The company says the network can be upgraded to 4G over time as demand for data grows.
2degrees has cellphone towers in Auckland, Wellington, Christchurch and Queenstown and a roaming agreement with Vodafone that gives it national coverage.
