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It is capacity and speed, rather than cost that drives choices for broadband plans. We want full service from our UFB connection

Personal Finance
It is capacity and speed, rather than cost that drives choices for broadband plans. We want full service from our UFB connection

The days of capped broadband plans are fast disappearing.

With the roll-out Ultra Fibre Broadband (UFB) and the rise of streaming TV services fewer and fewer Kiwis are bothering to opt for a capped broadband plan, despite any cost savings.

In fact, according to broadband and power comparison website Glimp.co.nz, not a single user of their service was interested in switching to a capped broadband plan in August this year.

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Their search data - which anonymously captures preferences of consumers comparing broadband plans, shows that every single search - 100% - was for an unlimited data plan in August.

And it’s no wonder, when you look at data from Chorus which shows the average Kiwi broadband user on its network chewed through 150 gigabytes of data in May - a +50% increase on the same month of the previous year.

And Chorus expects usage will double by the end of 2018, at which point capped data plans should truly be a thing of the past.

The rise of unlimited plans has been fairly consistent over the past two years. When Glimp.co.nz was launched in early-2016, around 20% of their customers were still interested in some form of capped plan, it was more like 10% by 2017 and is now, of course, 0%.

This trend goes hand in hand with a couple of other big trends amongst internet consumers: Increased demand for naked broadband (up +22% since 2016) and higher uptake of UFB, with 75% of users opting for it if it is available to them.

It all adds up to a better internet service experience for most New Zealanders.

The UFB roll-out now covers 1.13 million homes and the goal is for 85% to have access to the network by 2024.

You can find if your street has UFB and compare ISP prices and fibre broadband plans here.


► You can check the features, price and terms of most broadband offers using this handy tool.


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2 Comments

Yes, it is fast enough and you can stream videos from these sites without any lag or buffer time. But if the weather is bad, it will affect the reception very badly. That is the only reason why I never choose satellite internet. cable tv alternatives

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That's all good but at the same time according to The government’s Broadband Deployment Update over 765k New Zealanders are missing out on Ultra-Fast Broadband. It means that they can get fibre but for one or another reason are not doing it. Isn't it sad?

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