Vodafone NZ strengthened its position in telecommunications, by acquiring ihug from iiNet in 2006, effectively combining the strengths of the two companies.

The deal for Vodafone to buy ihug was announced in October 2006. The ihug name and brand no longer exists, after being retired in 2008. Becoming a landline phone provider and an ISP offering internet services transformed Vodafone from a mobile phone company into being a complete Communications Service Provider.

Vodafone now offers more types of internet connections than any other New Zealand provider. Vodafone supports ADSL, VDSL, Cable (DOCSIS), Wireless, and Fibre optic broadband.