Vodafone New Zealand, a unit of the Vodafone Group, has agreed to purchase ihug, a local ISP, for NZ$41 million ($27 million).
Vodafone said ihug, owned by New Zealand ISP group iiNet, has about 125,000 subscribers at present and has a strong brand in the ISP broadband market.
Vodafone said ihug should help it to develop more compelling propositions for its customers.
Although Vodafone currently has a 53% market share in
It said the purchase of ihug complements its telecoms offering in the country.
Vodafone introduced wireless broadband services earlier this month and intends to launch a 'home zone' service in the next year, enabling customers to make calls through a local number for a fixed monthly fee.