According to a report by the Dow Jones, Vodafone’s New Zealand operation has lost 25,000 mobile customers over three months leading up to June 30th.

Parent company Vodafone Group said Vodafone New Zealand lost 34,900 prepaid customers, but gained around 10,000 on account mobile users.

Reasons for the shift have been attributed to the New Zealand market dramatically changing over the past 12 months with 2degrees’ entry a year ago and Telecom and Vodafone offering wholesale services.

A Goldman Sachs broker is reported to have said that most of move in prepaid users was probably across to 2degrees.

Telecommunications Review has contacted Vodafone for comment.

Orcon recently announced its move into the mobile market with a series of no contract plans.