Kiwis ‘ripped off’ on phone, internet deals

New Zealand households’ internet and phone bills continue to be substantially higher than those in comparable countries, an international study by the Commerce Commission has found.

The commonly combined package of a home phone line and 60 gigabytes of data is still more than 30 per cent higher than the Organisation for Economic Co-operation and Development average, despite New Zealand prices dropping 14 per cent in the past year.

High-data, high-speed internet users are the most overcharged group, relative to their worldwide peers, with 150GB fast-fibre internet and phone bills 50 per cent higher than OECD benchmarks and 38 per cent higher than Australian households.

Even on

slower DSL

cable services, phone and 150GB internet packages were 24 per cent more expensive. Pricing for internet data bought without land-line phone services, called naked broadband, with average data use was more competitive in New Zealand, the commission said.

Customers who chose a 60GB internet plan with a cellphone contract and no home land-line paid 4 per cent less than the OECD average (after prices had dropped 41 per cent in two years).

Phone-line charges, which covered line rental and a basket of 60 calls including local, international and calls to cellphones, were 43 per cent higher than the OECD average, the commission found.

‘‘New Zealand’s residential basket prices are considerably higher than the OECD average for an average amount of calling, ’’ the commission said.