Kiwis overpaying for fixed-line and mobile services

Fixed-line and mobile phone service pricing is higher in New Zealand compared with the rest of the OECD, although we are on target for broadband, according to a new report from the Commerce Commission.

"For standalone broadband, New Zealand’s pricing is not significantly higher than the international benchmark average for low and medium users, and is lower than Australia,” a release from the Commission reads.

"For residential fixed-line voice services New Zealand prices are considerably higher than the OECD average. The key reasons for this is the high monthly line rental charged by Telecom, and the lack of alternative plans tailored for low levels of voice usage.

"These factors reflect the limited competition in the market.”

Mobile phone service pricing was also generally high, except for pre-pay users who predominantly sent text messages instead of making phone calls.

For mobile phone data, New Zealand was below the OECD average for users downloading small amounts of data (50MB per month), but well above for large amounts of data (500MB per month).

The 49-page report can be downloaded here.