Fixed charges bring broadband prices down $4 a month, Commerce Commission finds

Customers are paying about $4 a month less for their broadband than they were a year ago, a new Commerce Commission study has found.

This, the commission said, was the result of its 2015 programme to fix the maximum amount lines company Chorus could charge internet providers for its broadband services over local lines.

The commission found that 90 per cent of these price reductions had flowed through to customers.

"Those decisions produced a net decrease of just under $4 per month per customer compared to wholesale prices a year earlier," the commission said.

Telecommunications commissioner Stephen Gale said the organisation was pleased the benefits of the regulation had flowed through to customers.

"In this case our regulation reduced wholesale prices and it's good to see consumers benefiting.

"At the same time as average prices have been falling, it's also good to see the value of standard bundles continuing to increase with consumers getting more data for their dollar."

However, in a video accompanying the commission's statement, Gale said the telco industry remained the most complained about sector and the commission would be paying more attention to its service levels in the future.