New Zealand households may be paying too much for broadband
Reach and reliability matter for modern households, but a recent warning from NZ Compare suggests that many Kiwis could be paying higher-than-necessary prices for broadband. With a crowded market of plans and providers, it can be easy to accept the status quo, assuming that the speed you have is what you should settle for—especially if you aren’t sure what speed you are actually receiving.
Speed matters, but do you actually know your speed?
Speed was frequently cited as a key factor when choosing a plan, yet almost half of survey respondents admitted they didn’t know what speed they were on. This gap highlights a common problem: consumers may sign up for a plan based on a headline speed (like “100 Mbps Fibre”) without confirming the real-world performance. In practice, what you experience at home can differ from the label on the box due to network congestion, the number of devices connected, and peak usage times.
Why speed awareness matters
Understanding your actual speed helps you strike a balance between cost and performance. If your current plan consistently delivers less than the advertised speed, you may be paying for a service that isn’t meeting your needs. Conversely, you could be overpaying for top-tier speeds you don’t actually use. Being informed empowers you to negotiate better deals or switch to a plan that matches your household usage.
Is 100 Mbps Fibre still enough for most homes?
Many households using fibre, particularly a reliable 100 Mbps connection, report that this speed is adequate for typical online tasks: streaming high-definition video, video calls, gaming, cloud storage, and multiple devices online simultaneously. For families with several devices, higher tiers—such as 200 Mbps or 500 Mbps—may be desirable, but the value depends on actual usage patterns and the number of connected devices. In practice, 100 Mbps often aligns with peak-time performance for common activities, making it a sensible baseline for many households.
What to consider before upgrading or downgrading
- Household usage: How many devices are online at once? Do you stream at 4K or only HD?
- Peak vs off-peak activity: Do you notice slowdowns during busy evenings?
- Wifi setup: A strong router and good mesh coverage can dramatically boost perceived speed more than a higher plan alone.
- Hard data: Run speed tests from different times of day to gauge real performance and compare with your provider’s promise.
- Promo traps: Watch for lengthy contracts and promotional prices that rise after a few months.
Practical steps to ensure you’re not overpaying
Experts suggest a methodical approach to review your broadband plan:
- Check your current speed: Use a reliable speed test tool to measure download and upload speeds at different times.
- Compare plans: Look at both price and the speed tier offered. Consider bundles, data caps, and contract terms.
- Assess equipment needs: If your router is old, replacing it or adding a mesh system can improve performance more than moving to a pricier plan.
- Negotiate: With clear data on your usage, you’re in a better position to push for a better rate or a plan that fits your needs.
- Consider alternatives: If fibre isn’t delivering value, explore wireless or fixed wireless options where available.
A smarter approach to broadband budgeting
Ultimately, the goal is to align your broadband spend with actual needs. If your family is happy with a steady 100 Mbps fibre, that might be all you require, and you could reduce costs by switching to a plan that mirrors that usage. For others, a modest speed bump could significantly enhance daily tasks and entertainment without breaking the bank.
NZ Compare’s warning serves as a reminder: don’t assume your speed is correct or that your price is fair. Regular checks—grounded in real usage data—can help households secure better value in a crowded market, ensuring you don’t pay more for a service you don’t fully utilize.
