New Zealand has been ranked 22nd out of 26 countries for Internet effectiveness and performance.

A study by lobby group Internet New Zealand reveals we are paying reasonable prices but getting less for our money.

Plans from nearly 3,000 broadband packages from 26 countries were analysed.

In terms of overall prices New Zealand fared well, coming in at 6th.

However the report is critical of Telecom's data cap, or the amount of data users can download.

Most plans overseas don't have caps or are much higher.

Download speeds are also at or below average, clocking in at just under 3 mega bits per second.

The government's promised a shake up of Telecom's hold on Internet infrastructure.

Rival companies say this could mean cheaper and faster Internet.