KEY POINTS:
Households now have a choice of home phone and broadband providers after rules designed to break Telecom's monopoly came into force last year.
Since May, competitors have been able to buy access to Telecom's network on terms set by the Commerce Commission through Chorus, Telecom's network access arm.
Consumer New Zealand chief executive Sue Chetwin said the result had been better deals for customers, with companies such as Vodafone and TelstraClear vying with Telecom to offer the most attractive deals.
However, she warned that fierce competition meant companies were trying to lock people into longer contracts using the lure of cheaper prices.
So which company offers the best deal?
Cheapest basic home phone deal (No broadband)
Vodafone. If you don't need broadband and make few national and international phone calls, Vodafone's "talk box" option is a basic home phone deal with unlimited local calling for $25 a month. Extra charges apply for national or international calls. Be aware that the talk box runs over Vodafone's mobile network, so during busy times your home phone will be as reliable as the mobile network where you live.
Cheapest national calling
Telecom. Telecom offers the cheapest standard per-minute rate for national calls to home phones. Its Total Home phone and broadband package gives you unlimited national calls (of up to two hours each) as part of the set monthly cost. Vodafone also offers unlimited national calls of up to two hours, for $20 on top of your monthly bill.
Cheapest home phone deal outside of Auckland
TelstraClear has its own network in Wellington and Christchurch, and offers cheaper prices in those cities where it does not pay wholesale rates to Telecom. Its basic monthly rate of $35.95 for homes on its cable network in Wellington, Kapiti and Christchurch is the cheapest in the country.
Cheapest Australian calling
TelstraClear's standard per-minute rate to call Australia is just 3c a minute more than a national call. For those with very chatty relatives across the ditch, Telecom and Vodafone offer unlimited calls to New Zealand and Australian home phones for $25 on top of your bill.
Cheapest phone and broadband combo
Vodafone. For those not on TelstraClear's cable network in Wellington and Christchurch, Vodafone has the cheapest prices on most home phone and broadband packages. For light internet users, its 1GB home phone and broadband package gives twice the broadband of Telecom's 500MB pack for $2.35 less a month. However, TelstraClear's price of $80.44 is the cheapest for 10GB broadband and home phone.
Best value pack
Telecom. If its Total Home package suits your household, Telecom's offer of 10GB broadband, home phone line and unlimited national calling for $99 a month ($109 outside Auckland, Wellington and Christchurch) is the cheapest of its kind. Add unlimited calls to Australia for $10.
