Competition for mobile data heats up: Spark offers unlimited data for under $20 a week

Spark is now offering an unlimited mobile data plan at a price well below one of its rival's rates.

The telecommunications provider has been teasing the idea on social media and today made the announcement that it will offer its customers unlimited data for under $20 a week, after a successful trial earlier in the year.

Under the new mobile data plan, users will be able to browse without restrictions for $79.99 per month, which works out to be less than $20 per week.

Jason Paris, chief executive of Spark home, mobile and business, said the company trialled the plan through its Freedom Plan in April, and believed it was "one of the best-value unlimited mobile plans around the world".

Recent research shows unlimited data plans are growing in popularity, with 28 per cent of US users on unrestricted plans.

Paris said the move to cheaper unlimited data meant Kiwis would be able to keep up with global browsing habits.

"Kiwis are using more data than ever before, and that number is only set to rise," he said.

Mobile data usage has risen exponentially over the past couple of years. Traffic on Spark's mobile network last year more than tripled, a trend that won't be slowing down any time soon, Paris said.

"We have to recognise data is now a necessity and should be more accessible.

"We've invested millions into our mobile network to provide the capacity that our customers need at scale," he said.

Spark has invested $383 million into its mobile network over the past three years.

"This has given us the ability to launch an unlimited plan that is the best value for data you'll find in New Zealand - and what we think is one of the best value unlimited plans around the world."

Rival internet providers will have to match the plan or risk losing customers.

Telecommunications Users Association of New Zealand (TUANZ) chief executive Craig Young said the move to cheaper unlimited data was an important step.

"It's a good step for the New Zealand market and for users of mobile," he said.

"We've seen this happen overseas where unlimited data has come in and so it was only a matter of time before it happened in New Zealand.

"2degrees have had [an unlimited mobile data plan] in the market for a little while, but this is definitely cheaper."

Young said New Zealand has a "pretty" competitive mobile market but that it may take a while for rivals' prices to fall to a similar level.

"It might be that they actually wait and see how it is received in the marketplace ... they don't always follow immediately," he said.

"Unless you're mobile all the time, then this is just an addition to your standard broadband."

2degrees offers an unlimited mobile plan for $129 per month, while Vodafone New Zealand currently does not have an unlimited mobile data plan.