Little difference between providers

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MikeB4

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#306294 11-Jul-2023 09:55

At the beginning of the month I received notice from Orcon that my fixed line broadband was going up by $10 per month. I figured I would take the opportunity to look around at the various options and with the exception of ONE NZ'S HFC the various providers are with in a few dollars of each other. I didn't consider power companies that offer bundled broadband plans.

Am I right or have I missed something?

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#3102578 11-Jul-2023 10:27

Compare here.

https://www.broadbandcompare.co.nz/

Dynamic

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#3102596 11-Jul-2023 11:27

With most of the monthly charge for your UFB internet connection going to the lines company (Chorus, etc) there is only a modest margin for the internet retailer you are billed by. I think this modest margin limits innovation as the ISP needs to run fairly lean to stay competitive.

This is partly why mobile telcos are keen to sign up residential clients on wireless broadband that uses their cell networks. It gives them extra revenue on their existing network of cell towers, though the bandwidth/capacity of those towers needs to be managed carefully.

Power companies bundling internet plans typically have the sharpest prices on UFB connections but run the internet side of the equation as lean as possible to allow for this, I understand.

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Rushmere

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#3102600 11-Jul-2023 11:30

The broadband market is very competitive and there's not a huge profit margin in it, so there isn't a great deal of price variation amongst most of the suppliers.

Price rises are usually triggered by wholesale price rises, so pretty much all of the providers will eventually increase their price by similar amounts.

The difference is really around the service level, the quality of support, the add-ons that they offer and any initial incentive they give you to sign up.

I must admit, I don't switch providers very often these days. Once you've found a provider you're happy with, the hassle of switching is often not worth the small gains to be had.

xpd

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#3102603 11-Jul-2023 11:34

Whatever you do, don't fall for the "free TV/Fridge" deals, 9/10, they are not free and costs are built into the monthly fee.

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Eva888

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#3102606 11-Jul-2023 11:50

Was watching YouTube last night and an ad popped up for One NZ advertising Fibre for $50. Might be worth checking if the deal is still on.

networkn

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#3102608 11-Jul-2023 11:56

As @dynamic mentioned, there is very little margin in Internet provided by UFB, as such it's all going to be very much within $10-15 a month across the board. Bundling gives extra margin, as does using a non Chorus provided connection such as Wireless 4G/5G. The price increase is being primarily driven by a heralded increase in the wholesale cost to providers from Chorus.

My advice, if you aren't unhappy with your current provider, stick with them.

jonb

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#3102612 11-Jul-2023 12:01

xpd:

Whatever you do, don't fall for the "free TV/Fridge" deals, 9/10, they are not free and costs are built into the monthly fee.

Honestly I have had a good experience with that, midway through second year of my Trust Power contract. Think those offers will be going away now they have been fully absorbed by Mercury. Gave a door-knocker salesperson some of my time, they price matched Voyager by way of an extra $200 credit (then Voyager raised prices anyway a couple months later :) , UFB service has been fine (inc a nice Eero 6) and the power price was locked in at a competitive rate. And I got a washing machine, no complaints.

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Dynamic

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#3102617 11-Jul-2023 12:05

Eva888: Was watching YouTube last night and an ad popped up for One NZ advertising Fibre for $50. Might be worth checking if the deal is still on.

I had to go looking and did find the plan. Wow... that's a great deal. 50/10 fibre internet is nothing to sneeze at and should be fine for the majority of households the majority of the time, IMHO.

Your ultimate internet plan. Fibre from $50, only from One NZ.

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tanivula

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#3102625 11-Jul-2023 12:52

You need a mobile on account with OneNZ for that $50 plan right?

Rushmere

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#3102627 11-Jul-2023 12:58

tanivula:

You need a mobile on account with OneNZ for that $50 plan right?

That does seem to be the case, otherwise it's $60.

concordnz

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#3102725 11-Jul-2023 13:22

50/10 speed! That's terrible!
Worse than some ADSL.

Don't touch it with a large barge pole!

Behodar

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#3102737 11-Jul-2023 14:05

That is not worse than ADSL, although it's potentially slower than VDSL. If you're on a budget then it could be a good choice.

nztim

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#3102739 11-Jul-2023 14:10

Some providers funnel all their traffic as Layer2 via their Auckland point of presence (POP) others have POPs in Major Cities (AKL/WLG/CHC) and this is where your traffic enters the internet.

So, my response is based on where you are and what matters to you, for me I like using RSP that has a local point of presence in Wellington and therefore traffic enters the internet there.

Any views expressed on these forums are my own and don't necessarily reflect those of my employer.

RunningMan

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#3102749 11-Jul-2023 14:45

concordnz: 50/10 speed! That's terrible!
Worse than some ADSL.

Don't touch it with a large barge pole!

Rubbish. It's at least double the maximum ADSL download and 5-10 times better than the best ADSL upload and generally lower latency and higher uptime. Depending on the number of simulataneous users in a household 50/10 can be a very good option. It's plenty fast enough for 4K video streaming, probably even 2 simultaneous 4K streams. Not to mention that a good number of 50/10 plans will sit under the $60/month cap from Chorus providing an affordable connection for many households. It certainly doesn't suit everyone, particularly if you need to back up to cloud services or other high bandwidth upload, or have a larger household with simultaneous high bandwidth users.

networkn

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#3102762 11-Jul-2023 15:20

concordnz: 50/10 speed! That's terrible!
Worse than some ADSL.

Don't touch it with a large barge pole!

It's terrible for you, but for general browsing, youtube, consumption, it would be plenty for *many* households.

Fibre is a different technology and is less contended than VDSL/ADSL was. It will 'feel' faster and less variable than VDSL.

My sister had a 70/10 VDSL Connection and she was MUCH happier on her 30/10 Fibre Connection. Raved about it for months. Her use is light.

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