Internet New Zealand says new figures from the OECD show data caps and high prices are limiting the number of households using broadband internet.
New Zealand has gone from 17th to 15th out of 34 countries on OECD league tables for broadband penetration, with 29 subscriptions per 100 residents.
Internet New Zealand says that's encouraging but there's still plenty of room for improvement.
Until late last year, only New Zealand, Australia and Iceland had no broadband plans without data caps.
The organisation says New Zealand is also performing poorly on price, with its the cheapest plans being the seventh most expensive on the OECD table.