The Commerce Commission is cracking down on broadband marketing in an effort to improve transparency and consumer choice, as more Kiwis transition from copper to faster fibre connections.

08 November 2026

With the rise of fibre broadband and the decline of copper, the regulator is concerned that marketing practices have left consumers confused. In response, the Commission has proposed strengthening its broadband marketing guidelines.

Upfront Performance Data

The new rules focus on verified speed information. The regulator notes that providers have moved away from using theoretical "up to" speeds and now generally reference speeds from the Commission's independent Measuring Broadband New Zealand (MBNZ) programme. The updated guidelines now call for peak-time download and upload speeds to always be provided when available.

Each MBNZ report measures coverage, performance, speed and reliability of broadband services. Powered by the regulator's proprietary Whitebox device, its real-time data collection monitors actual home internet performance. Crucially, its findings provide an objective, real-world is-it-worth-it comparison between providers, technologies and packages.

The March 2025 report, for instance, found that "Fibre to the Premises 300 Plan" averaged download speeds consistently above 300 Mbps — even during peak usage hours. This is the kind of hard data the Commission wants providers to prominently feature in their marketing to help customers make more informed decisions.

Clearer Exit Rights

Even with transparent upfront information, things can still go off-course when expectations meet reality, which is why the regulator is also pushing for more clarity around exit terms.

The proposed changes to marketing guidelines call for a standardised "exit right" so consumers are able to exit a contract without paying premium penalties if performance is not as advertised. Currently, there is too much variation in how this right is communicated and applied.

Usage and Spend Data

The revised guidelines seek expanded access to consumer usage and spend information, modelled on the mobile market, to give consumers a clearer understanding of their internet usage to help them optimise their plan.

Industry Impact

The Telecommunications Forum, a regulatory body that develops industry codes of practice, has adopted the MBNZ as a key data source to promote transparency in the telecommunications sector. With the Guidelines update expected to be finalised this year, the Forum is anticipated to begin formal application within the next six months.

In an effort to standardise consumer protection measures, the revised guidelines integrate consumer safeguards under various telecom laws and regulations, including the Telecommunications Act 2001, the Fair Trading Act 1986, the Privacy Act 1993, and the Consumer Guarantees Act 1993.

Since 2022, New Zealand's fibre broadband space has been subject to price-quality and disclosure regulations. This overhaul is an incremental effort to further sharpen consumer protections within the broader context of the Commission's ongoing telco quality-of-service monitoring, in-home performance tracking and subscription transparency initiatives.