Telecom is dropping its monthly telephone line rentals for the first time in a decade - but only for Wellington and Christchurch customers.
The 18 per cent drop to $29.95 from $36.65 affects more than 500,000 of Telecom's 2.1 million customers.
Auckland, where Telecom has no competitor, misses out.
The move is designed to squeeze TelstraSaturn as the Australian rival sets up a state-of-the-art network in Christchurch and prepares to go live with part of it in about a month.
The $29.95 monthly rental matches TelstraSaturn's in Wellington, but the Australian competitor has not yet announced its pricing in Christchurch.
AdvertisementAdvertise with NZME.
Latest from New Zealand
Armed police, bomb squad find 'item of concern' at Christchurch property
Neighbour says he was evacuated from his home after "device" was found.