The Commerce Commission has released a report showing that NZ telecom charges are the highest among OECD countries. There are a number of problems:
1. The high cost of data capacity
2. The cross-subsidisation of 'local call' users
3. The requirement for rural customers using data only to have a landline as well, thus they are obliged to pay an extra $56/mth for a service they do not use.
Telecom and Vodafone do not compete much. We currently get the Telecom plan because we do not require a contract. We pay $112/month for 20Gb/mth capacity. The service is reliable enough, though in some areas you can wait for up to 2 years to get a connection. I had better options in the Philippines...a third world country. Australia is about 30% cheaper I believe, though it does depend on your plan and location.