InternetNZ publishes discussion paper on data caps

05 Aug 2011

InternetNZ (Internet New Zealand Inc) has published a discussion paper on Barriers to Unmetered Domestic Internet Traffic. InternetNZ is seeking comments by 26 August on the paper as well as views on what goals can be set in the area of data caps.

The discussion paper is available online at or directly as a PDF from

InternetNZ Chief Executive Vikram Kumar says “There has been a lot of discussion about monthly limits of Internet usage (data caps) that are typical in New Zealand. This discussion has been both internal within InternetNZ as well as in a number of public forums.

“The discussion has been about the low levels of data caps at present as well as the future shift to fibre-based broadband. On the other hand, many Internet Service Providers (ISPs) continue to support data caps as effective tools to manage customer demand, keep retail prices low, and contain their investments.

“Against this backdrop, InternetNZ commissioned independent consultant Colin Jackson to talk to a wide range of people and organisations to get their views on why New Zealand has data caps. Recording and articulating these views is a first step towards considering what our goals and initiatives should be in this area.

“It is clear that New Zealand’s very low data caps are a result of a number of factors. These range from market failure, lack of concerted consumer pressure, and fears of consumer confusion. The recent increase in fixed-line broadband data caps by Telecom and Vodafone only underline how much room there is for the major Internet Service Providers to move on this issue.

“We believe it is important to understand the perspectives of Internet intermediaries and content providers so that a well informed discussion on addressing low data caps takes place. At the end of the day, we hope that the discussion will lead to action. Otherwise the true potential of the Internet for Kiwis will remain a mirage as we fall behind other countries."

For further comment contact:

Vikram Kumar
Chief Executive
021 937 211


Data caps