Under the new mobile data plan, users would be able to browse without restrictions for $79.99 per month, which works out to be less than $20 per week.
Vodafone today unveiled its new mobile plans in response.
Its Red + Essentials plan would give customers 22GB a month for $79.99, but with "no strings attached".
The bigger data bundles come with no use limits, meaning customers would be free to create mobile hotspots and tether to other devices, regardless of whether they were at home or on the move.
"We believe in letting our customers use their monthly data however they like, whenever they want and always at the highest possible speeds," said Vodafone consumer director, Matt Williams.
"We know that sharing devices and hotspots makes life easier and now we're offering all Kiwis heaps more data to do whatever they want with no strings attached on New Zealand's fastest mobile network."
The telco has also upped data in its other plans, including Red + Lite and Advantage Lite. The new plans would be available for a limited time.
"We are thrilled to unleash these new plans because we know our network can manage all the tethering our customers can throw at it, and we absolutely encourage them to make the most of what they've signed up for," Williams said.
Spark home, mobile and business chief executive Jason Paris this month said research showed unlimited data plans were growing in popularity, and 28 per cent of US users were on unrestricted plans.
He 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 use has risen exponentially over the past couple of years.
Traffic on Spark's mobile network last year more than tripled, a trend that wouldn't be slowing down any time soon, Paris said.
"We have to recognise data is now a necessity and should be more accessible."
