ihug was New Zealand's third largest ISP (behind Xtra and TelstraClear), before it was bought, then absorbed by Vodafone New Zealand (the country's largest mobile phone operator). According to 2005 estimates, it had over 100,000 internet and phone subscribers. Before 2000 Ihug was New Zealand's largest ISP but as other ISPs began offering flat rate services, many customers opted to transfer to those providers, particularly Xtra.
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