New Zealand

NZ phone, broadband bundles costly

19:14 pm on 23 December 2013

New Zealanders are paying almost a third more for some phone and internet bundles than the average of the countries in the Organisation for Economic Co-operation and Development (OECD).

A report from the Commerce Commission also found stand-alone voice services are among the most costly in developed nations.

Photo: RNZ

The commission said most customers are now buying broadband and phone services together.

It says a bundle with 60 gigabytes of data still costs 30% more than the OECD average, even though the price has dropped 14% over the past two years.

Figures for internet and phone packages with half this data show New Zealand lagging behind Denmark, Mexico and Ireland.

For voice-only services, the cost can be 43% above the average from OECD countries.

But the commission says prices are more competitive for broadband bought without phone services, known as naked broadband.

The report says the average broadband user in New Zealand is now using 23 gigabytes of data each month.

Telecommunications Commissioner Dr Stephen Gale said competition from mobile and other services seems to have at least stopped Telecom from raising its standard charge, which has remained at $50 a month since June 2011.

Dr Gale said bundled broadband and phone prices are higher because it is expensive for some Internet Service Providers to offer phone services, which some buy from Telecom and sell it on, and because broadband itself is not cost-based.

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