Telecom and Vodafone are preferential bidders for the contract' />

Labour is calling on the Government to re-tender it's rural broadband initiative.

Telecom and Vodafone are preferential bidders for the contracts, which Labour said will allow them to carve up rural areas and offer whatever prices they want.

"This means less competition and less choice for New Zealand consumers and contradicts the intentions of the Government's supposed high-speed new fibre network," said Labour communications spokeswoman Clare Curran.