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Vodafone will cut traditional home-phone costs by 40 per cent under a new local calling plan.
The saving was for the majority of New Zealanders on a standard Telecom anytime plan.
While Wellington and Christchurch consumers have had a choice of networks via TelstraClear, Aucklanders have mainly had to rely on Telecom's network.
But the giant company has now opened its network to competitors. Under Vodafone, customers will pay $25 a month to make unlimited local calls.
Extra charges will be made for national toll calls of 20c a minute, up to a capped $2.50 for two hours.
Vodafone said last week that it would launch a fixed-line broadband service that would also offer home phone lines. This was a result of the Government's drive announced two years ago to force Telecom to open up its network to promote more competition in telecommunications.
Vodafone said that by the end of October it would have "unbundled" all of Auckland's phone lines, meaning it would put its equipment into Telecom's exchanges and access Telecom's lines. The plan involved no line rental fees and customers would retain their existing home number as they switched to the Vodafone network.
