Spark is the latest service provider to increase prices.

The telco’s broadband and mobile customers will pay between $2 and $8 per month more from August, depending on their plan.

An Auckland customer, Linda, told
the Herald her Essential Fibre plan would increase by $5 or 5.5 per cent, from $91 to $96 per month.

She had also faced an increase last October when Spark migrated her from her $80 to $100 per month (depending on the amount of data used) “Unplan”, which was being axed, to the $91 per month Essential Fibre unlimited data plan.

Linda said she did not want to pay more. She would look at cheaper plans elsewhere, or downgrade to a cheaper Spark plan.

In its most recent quarterly update, Stats NZ said inflation was running at 4% for the 12 months to March 2023, down from the year-ago 6.7%. The next update is due in a fortnight.

“While we do our best to keep price increases to a minimum, we’re adjusting the price of some of our broadband and mobile plans from August 1 to reflect increases in our operating costs,” a Spark spokeswoman said.

“We know price increases are never welcome, but they are necessary to ensure we can continue offering our customers great service, and maintain the significant investment we make in our networks and technology.

“Customers can check whether their current plan is still right for them by messaging us and asking about our Made For You Review programme. This personalised service uses automation to compare customers’ recent broadband or mobile usage and the price they are paying with our latest plans, and recommends the one that’s most suited to them.”

Other shoe yet to drop

Regulators allow Chorus, which operates the UFB fibre network (along with three smaller firms), one wholesale price rise per year pegged to inflation.

Retailers like Spark, One NZ and 2degrees typically pass on that increase to their customers.

“Chorus has not made any decision on our next round of price changes,” a spokeswoman said.

“We will consult with the industry prior to making price decisions and this process will start at the end of July to early August.

“If there are any price increases to Chorus’ wholesale prices, they won’t come into effect until January 1, 2025.”

The last CPI-related price adjustment was in October 2023, the spokeswoman confirmed.

One NZ, 2degrees update

Spark’s largest rivals, One NZ and 2degrees, both told the Herald they had no immediate plans to raise pricing – although a One NZ spokesman outlined building pressure.

“Like all New Zealand businesses operating in this tough economic environment, we are not immune to inflationary pressures, whether that’s employment labour costs, operating costs like energy and fuel, or rising wholesale input prices. We do our best to absorb these cost pressures through operating efficiently in the first instance,” he said.

Broad range of increases

Even though overall inflation is cooling, price rises continue to hit a range of services.

The Ministry of Business, Innovation and Employment said this week household electricity bills rose 3.3% over the three months to May 15, while the Commerce Commission has approved a lift in power transmission charges that will add $15 per month to the average residential customer’s bill from next April.

Aucklanders face a 7.2% increase in water rates from July 1, while general rates will increase by an average 6.8%.

Software firms like Xero and Microsoft have increased pricing beyond inflation for their subscription-based software, as have streamers – including Disney+, which in March raised its monthly pricing by 27% to $18.99.

The National led-Government will roll-back Labour’s 11 cents per litre Regional Fuel Tax from July 1, but has also introduced outlined staggered increases to the Fuel Excise Tax that will reach a cumulative 22 cents per litre by the end of the next Parliamentary term. It has eliminated EVs’ exemption from the road user tax, and announced that the cost of registering a car will increase by $50 over the next two years.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.