Competition in the telecommunications market seems to be getting even tougher, with 2degrees, the newcomer, announcing that it has managed to sign-up over 200,000 customers in the first 6 months of business alone.

The announcement by the newbie had come the very day that Telecom has shared that its profits have managed to slip compared to the same time last year.

Eric Hertz, Chief Executive of 2degrees, has proudly announced that the company is "no longer an underdog biting at the heels of the big telcos".

"Over the last six months we were able to attract over 200,000 people who are actively using and paying for a 2degrees service. It's about 80% that have come over from Vodafone", he shared.

For the past year's fourth-quarter, Telecom posted a 24% slip in earnings to $80 Million, compared with the figure of $105 Million reported for 2008's last three months up-to December 31.

"(But) we hope and believe it's a short-term setback", said Telecom Chief Executive Paul Reynolds.