The government has announced a connectivity target for areas that fall outside of the ultra-fast broadband footprint.

Their vision is for 99 per cent of New Zealanders to be able to access broadband at peak speeds of at least 50 Mbps by 2025, with the remaining one per cent able to access 10 Mbps.

The Rural Broadband Initiative programme nears completion. Photo: File.

'50Mbps requires further significant investment in fibre, and potentially wireless infrastructure,” says Chorus CEO Mark Ratcliffe.

'As the highly successful Rural Broadband Initiative programme nears completion, Chorus is well placed to assist government's policy objectives and looks forward to the opportunity to participate in the initiative.

'We think investors will also be keen to see government's discussion document on the post 2020 regulatory environment turned into appropriate legislation, to ensure that investors see a fair return on the financial commitment implied by these bold and ambitious targets.”

Network chief executive Dalton Kelly adds: 'The worst case scenario given of one per cent far exceeds our expectation, which we would have put at 10 per cent. We are over the moon about the prospect.”

The announcement made yesterday by Communications Minister Amy Adams recognises the ever-increasing demand for high-speed broadband across New Zealand, and its importance to regional growth.

Dalton says enhanced access to fast and reliable broadband in rural New Zealand will be hugely welcomed by rural medical practices, business, communities and individuals – especially those who do not have the luxury of peak speeds offered at the moment.

'Rural New Zealand is and will remain the backbone of the New Zealand economy,” says Dalton. 'The farming, agriculture and horticulture sectors, along with the tourist sector, are vital to this country's economic and social wellbeing.

'Good broadband is something that people in urban areas expect, and rural communities and the people working within them are no different.

'Whether it's the rural medical centre, farm, business or school, rural people expect to be connected to the rest of New Zealand, and indeed the world, in this day and age.”