Vodafone NZ strengthened its position in the telecommunications market by acquiring ihug from iiNet in 2006 and combining the strengths of the two companies.
The deal to acquire ihug was announced in October 2006 and the ihug brand was later retired in 2008. Becoming a landline telephone provider and an ISP offering internet and home phone services transformed Vodafone NZ from a mobile phone company into a complete Communications Service Provider.
Vodafone now offers more types of internet access than any other New Zealand provider. This includes ADSL, VDSL, DOCSIS 3.1 and Fibre Optic.