With Spark announcing a price increase of $5 a month for new and existing fibre broadband customers there are savings to be made.
Information collated by our research team has found that tens of thousands of financially vulnerable Kiwis could be missing out on hundreds of dollars of savings each year on their broadband bill, because they are failing to shop around for cheaper broadband plans.
Here at NZ Compare we estimate that over 500,000 households would be able to pay less for their broadband each month but many consumers are unaware of the fact that they could be making these savings and for those who do, they often don’t know where to start
Whilst your broadband bill may have been immune to the recent effects of inflation, changes are soon to come for many consumers as a result of wholesale price increase. The major telco business, Spark has their website detailing a price increase of $5 a month for new and existing customers on their fibre broadband plans from 29 July 2022 (see here) and other companies are very likely to follow suit as costs increase throughout their supply chain.
Gavin Male, CEO of NZ Compare said, "It’s amazing that so many consumers remain loyal on legacy pricing and plans when it comes to their broadband connection. The cost of a retail broadband plan has been one of the few consumer goods to steadily fall against the CPI index over the last decade yet hundreds of thousands of households are yet to explore the alternatives which could save them a significant amount of money."
Male continued, "There are over 100 broadband providers across New Zealand, yet over 60% of broadband connections remain with the two largest providers, Spark and Vodafone. These companies offer some good deals and value, in particular when bundling mobile plans, but it still pays to shop around before you commit. With more players entering the market there are some really great deals to be had at a time when the cost of living keeps rising. Your broadband and power bills are two household expenses that you can often easily save money on."
The NZ Compare analysis calculates that there is close to $100 million a year in potential savings being left on the table by Kiwi households. Switching broadband providers and plans is now a relatively simple process. Broadband service providers must make it easy for eligible customers to switch over to different companies or plans. Changing provider or plan will assist in the bigger goal of helping everyday Kiwis reduce their household debt and financial pressure during a climate where the cost of living is on the rise.
"Consumers should not be disadvantaged from working, studying or staying connected simply because they’re unaware of how to compare their broadband bill and we implore these households to seek out help on how to switch to a plan and provider that may better meet their needs" stated Male.
Compare your broadband plan by visiting Broadband Compare.