Internet service providers will not be forced to pay back Chorus when wholesale prices go up.

Since last December, a price of $34.44 per month has been in place.

The Commerce Commission has today proposed increasing the monthly rate to $38.43.

It is also proposing not to backdate the costs when new prices come into force at the end of this year - saving internet providers $57 million.

Telecommunications Commissioner Dr Stephen Gale said they had to consider competition and efficiency when considering whether to backdate.

"Well the guts is that the majority view was that you couldn't demonstrate an advantage to efficiency or competition by backdating."

New Zealand's dispersed population and engineering costs contribute to make our broadband cost more than European counterparts.

Gale said that comparing to New Zealand to Sweden helps show why it is more expensive here.

"In New Zealand, because our population is more dispersed, more cable is required to build a cable network to homes than it is in Sweden."

According to Gale, digging and laying the cable costs 63 percent more in New Zealand than in Sweden.