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Wireless internet broadband modem - Source: ONE News -
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There has been strong growth in the broadband market and increased competition in fixed line markets, according to the Commerce Commission's 2008 telecommunications monitoring report.
Key findings of the report show that total broadband connections in New Zealand reached 915,000 by 31 December 2008.
The OECD estimates there are 20.4 broadband subscribers for every 100 people, giving New Zealand a ranking of 19 out of 30 countries in the OECD.
The quality of broadband also improved during 2008 with major ISPs investing in extra network capacity.
Fixed line call prices continued to fall mostly as a result of bundled offers that include calls, line rental and broadband.
The commission says Auckland - where exchanges have been unbundled allowing other providers to offer fixed line services - offered consumers the most competitive prices.
However, the commission says list prices have not shown much improvement for consumers.
In the mobile phone sector, phone usage has continued to increase although the commission says New Zealand's mobile calling volumes are low by international standards. As a percentage of total calling minutes, New Zealand mobile call volumes are around one quarter compared with one third to one half in comparable countries.
The commission says as a whole, the competitiveness of the mobile market is relatively unchanged from previous years.
However, it says the entry of a third operator NZ Communications into the market, and the launch of Telecom's new 3G network later in the year, should improve competition.
