The Kiwi's Guide to Internet: Fibre, Fixed Wireless, and the Starlink Revolution
Trying to figure out the best internet plan in New Zealand can feel like navigating a maze. Do you go for a classic fixed-line connection, or is wireless the way to go? And where does a new, satellite-based service like Starlink fit into the picture? The answers aren't one-size-fits-all. They depend on where you live and what you need.
This article, written by The I.T. Bear, breaks down the current state of New Zealand's broadband, from the government-led fibre rollout to the disruptive rise of a new player.
The Foundation: How New Zealand Got Connected
To understand today's internet options, you first need to know about the Ultra-Fast Broadband (UFB) program. This massive, multi-billion dollar project, which was a public-private partnership, was the single most important factor in shaping our modern digital landscape. Launched after 2008, it successfully delivered high-speed fibre to 412 towns and cities across the country, wrapping up in late 2022.
The program was a huge success, with an impressive 73% to 76% of eligible homes and businesses opting in. It was so successful that some of the capital repaid by delivery partners was recycled to extend the UFB network even further into rural areas. The work isn't over, either. A new, Chorus-funded expansion is currently underway to bring fibre to another 10,000 locations in 59 communities by mid-2025, which shows that New Zealand views digital infrastructure as essential, just like roads and pipes.
The UFB program created a new kind of "digital divide" in New Zealand. It's no longer about who has access to the internet and who doesn't. It's now a gap between those with access to ultra-fast fibre and those who are still stuck on slower, older technologies. This is the gap that providers are working to close.
Getting Technical: A Breakdown of Your Internet Options
New Zealand's internet market is built on a few core technologies, each with its own pros and cons.
Fibre: This is the gold standard. Fibre uses thin strands of glass to deliver data at incredibly fast speeds, with some plans now offering up to 8 Gbps. It’s the top choice for anyone who needs to stream, game, or work from home without a single hiccup.
Fixed Wireless (4G & 5G): This technology uses the mobile network to deliver broadband to your home. It's a great option in areas where fibre isn't yet available. While 4G Fixed Wireless offers average speeds of around 63 Mbps, the new generation of 5G is a game-changer, with average speeds of 329 Mbps during peak hours.
Fixed-line Copper (VDSL & ADSL): This is the old copper telephone network. The number of connections has dropped dramatically since 2015, as people switch to better technology. Copper's speed is heavily dependent on how close you are to the exchange, which makes it less reliable.
Cable: A hybrid of fibre and copper, this option is only available in specific parts of Wellington, the Kapiti Coast, and Christchurch. One NZ operates this network, offering a fast alternative to fibre with average speeds of 867 Mbps.
The Urban Choice: Fibre vs. Fixed Wireless
If you live in a city or suburb, your choice is likely between Fibre and Fixed Wireless.
Fibre is almost always the best option. Where it's available, it offers unmatched reliability and speed. Providers like One NZ offer plans with average peak download speeds of 906 Mbps, which is perfect for households with multiple users and devices. It can handle everything from 4K streaming to professional gaming, and a standard installation is often free.
Fixed Wireless is a great alternative. With the continued rollout of 5G, Fixed Wireless is becoming a strong competitor to fibre. It's particularly appealing because it's often a "plug and play" setup, meaning you don't need to wait for an installation. You just plug in your modem and you're good to go. With 5G speeds reaching over 300 Mbps, it's a very viable option for many urban homes.
When choosing a provider, customer service matters. Major players like Spark, One NZ, 2degrees, and Orcon dominate the urban market. A Consumer NZ survey rated Starlink as the "star performer" with an 80% satisfaction score (this is likely high due to the consumers that have now switched have come for very poor outdated internet connectivity), while the local provider NOW was ranked second with 65%. NOW's success comes from its focus on local service and in-person support, proving that customer experience is just as important as speed.
The Rural Revolution: Starlink Arrives
The biggest difference in New Zealand's internet market is the divide between urban and rural areas. Traditionally, rural users have had limited options, often relying on slower copper connections and paying an average of 29% more for broadband than their urban counterparts. This is why there is a patchwork of small, regional wireless providers.
For many, fast internet is no longer a luxury. One user said, "I'd go without luxuries, even food, before I went without decent Internet. I wouldn't buy a property that didn't have good Internet access and Starlink provides that to rural communities".
This is where Starlink, operated by SpaceX, comes in. It's a true game-changer. The service uses a network of thousands of satellites in low Earth orbit (LEO), which is much closer to Earth than traditional geostationary satellites. This is the key to Starlink’s low latency, which is the delay in a connection. It makes the service usable for things like video calls and online gaming, which were previously impossible on satellite internet.
Starlink became available nationwide in New Zealand in 2021. Its impact has been huge and fast. As of 2024, Starlink is the third-largest rural broadband provider in the country, with its connections growing by over 54% in a single year.
A Closer Look at Starlink
So, is Starlink all it's cracked up to be? Let's look at the data.
The Good Stuff: Performance and Value
Starlink's performance is a major reason for its rapid growth. Advertised download speeds range from 25 to 220 Mbps, with the Commerce Commission reporting an average of 214 Mbps—about four times faster than the next best rural alternative. One user test even saw speeds as high as 391 Mbps.
Latency is a huge win for Starlink. At a typical 20-40 ms, it's a massive improvement over older satellite options and is comparable to Fixed Wireless and DSL.
In terms of cost, the upfront equipment fee can be a barrier, ranging from about $399 to $924, though specials are sometimes available. The standard monthly fee is $159. Starlink also offers a "deprioritised" plan for $79 per month, which is a great option for users who don't need maximum speeds.
The Catch: Variability and Customer Service
The Starlink experience isn't perfect. Speeds can be "extremely variable," sometimes dropping to just 7 Mbps. There can also be small outages of 5-20 seconds every few hours. The service requires a clear view of the sky, and weather conditions can impact performance.
Another major weakness is customer service. Starlink has no phone support and no on-site staff in New Zealand. If you have a problem, you must use an online ticket system, which can have long response times. If a piece of equipment fails, you have to wait for a replacement to be shipped, which can leave you without internet for an extended period. This is a clear point of difference with local providers who pride themselves on hands-on support.
Which Internet Option is Right for You?
The decision matrix is simple.
If you live in an urban area and fibre is available, get fibre. It is the fastest, most reliable, and most future-proof option, and its performance is superior to Starlink's.
If you live in an urban area and fibre isn't an option, a 5G Fixed Wireless plan is a great choice. It's fast, easy to set up, and can handle most home needs.
If you are a rural resident with no access to fibre or a decent Fixed Wireless connection, Starlink is your best option. It offers speeds and low latency that were previously unheard of in remote locations, which is why rural users are switching to Starlink in equal numbers as they are to 4G wireless options.
The bottom line is that Starlink is not a competitor to fibre. It's a transformative solution for the rural market that has been underserved for too long. For the rest of the country, the UFB program has created a robust, high-speed fibre network that remains the number one choice.
Any questions, please contact The I.T. Bear at www.theitbear.nz