As more Kiwi homes are connected to fibre, prices for the packages are dropping.

New Zealand has finally reached "broadband parity" where it now costs the same for some normal broadband packages as it does for fibre.



That's good news for Kiwis who are gobbling up internet data faster than ever, but the bad news is that this may be as cheap as it gets.



Broadband parity happened recently when Spark started charging $69 a month for its naked (no phone included) fibre package which gives you 80GB of data with a 30Mbs download speed.



Its naked ADSL (basic copper broadband) deal costs the same but only promises a maximum download speed of 10Mbs.



By New Zealand standards these are pretty good prices as the cost of broadband has dropped a lot in the past few years.



In 1999 a basic broadband plan (phone and 40Gb data) would have cost $13,500 per month. Even three years ago that plan would have cost $105 a month.



The future doesn't look too bad either. Spark's naked 1000Mbs plan with unlimited data is being offered to eligible Dunedin residents for $99 a month.



However, when you compare what we pay per megabit per second compared to other countries it doesn't look so good.

According to data from broadband tester Ookla, we place 42nd in the world when comparing broadband prices per Mbs.

So it's hard to celebrate our broadband parity when countries such as Malta and Romania have more affordable broadband than we do.

Slingshot general manager Taryn Hamilton said the race to secure fibre customers and reduction in international data costs were the reason behind recent price drops for fibre.

"Companies have priced reasonably aggressively to try and build the [fibre] uptake."

"Competition is very fierce at the moment and that is good for the consumer."

However, he said there was a regulated price increase for fibre for the next several years.

"Overall broadband is about as cheap now as it's ever going to get. I can't see any further reductions in price, either on copper or fibre in the foreseeable future."

This is because of pricing criteria set by the Commerce Commission which is also the reason why broadband prices in New Zealand are high compared to overseas.

He said the economics of this continues to be discussed but the upshot was the more ISPs paid infrastructure providers, the more customers paid for broadband.

However, one industry expert says there is a slight chance intense competition may offer some hope.

Chief executive of the Telecommunications Association of New Zealand Craig Young said increased competition in the market could push some packages down.

"Price war is not the right word, but it certainly is competitive and ISPs are looking to maintain their market share."

Young said he doesn't expect movement around the lower 30Mbs plans though there could be competition for the faster packages and unlimited data plans.

He said there was an increase in the number of people signing up for 100Mbs plans as people finally realised that to get the content they want, such as movie streaming, they need to get a fibre plan.

Young said now was a good time to sign up to a fibre plan.

"While fibre installation is generally free, get it in and once it's done you can then upgrade or change if needed."

This comment was backed up by Hamilton who said: "Consumers should take advantage of UFB while installation charges are still free. It's not going to last forever."

This is because funding of fibre installation is provided by Crown Fibre Holdings and that money will eventually run out.

Other ISPs are also bullish on the uptake of fibre plans.

"Fast fibre has never been more attractive to customers, as the cost of these plans starts to line up with our popular ADSL and VDSL broadband plans," said Spark executive Chris Quin.

Spark said it was difficult to predict the trend for fibre broadband prices, as price was dependent on a range of factors – such as what the regulated wholesale charge will be.

"However, the market for fibre is hugely competitive which can only be a good thing for consumers, and as more New Zealanders access fibre this competition will only increase," the company said in a statement.