The Commerce Commission says mobile phone users now have more choice and better pricing plans, thanks to the entry of low-cost network 2degrees this year.
The commission's report into the competitiveness of the telecommunications market during the first six months of this year found that, for the first time, New Zealanders can access pre-pay prices that are lower than the average of all OECD countries.
Previously, New Zealand ranked 26 out of 30 countries in the Organisation of Economic Cooperation and Development in pre-paid prices.
Telecommunications Commissioner Ross Patterson says more players and greater investment in technology is proving to be a boon for consumers.
Dr Patterson says New Zealand's broadband prices are in line with those of similarly developed countries.