The Commerce Commission has cut the amount network operator Chorus can charge retail providers for voice and broadband services, resulting in a 14% fall in its share price on Monday.
However, Telecommunications Commissioner Stephen Gale says customers won't see much off their bill as the reduction in the line price is small, at 94 cents to a nationwide average of $23.52 per month.
The line price is the amount phone companies pay Chorus for access to the network operator's copper lines.
The cut is significantly less than the regulator had proposed earlier this year, when it was looking at reducing charges by nearly $5 to $19.75.
The cut to the average copper network charge will come into effect immediately.
Chorus says the change could reduce its gross earnings for the 2013 financial year by about $12 million.
The regulator is also proposing to cut the broadband bitstream service - the charge for retail providers who use Chorus's electronics to provide broadband - by 38% to $32.45 in December 2014, though this has not been finalised.
Chorus says if both proposals go ahead, it could lose about $172 million.
Shares in Chorus fell 49 cents to $2.91 at the close of trading on Monday.
