Tauranga residents will be among the first in the country to receive ultra-fast broadband internet.
The Tauranga rollout will be carried out by WEL Networks and is set to begin early next year. It will cover the area from Matua in the north, to Hairini in the south, Bethlehem in the west and through to the coast. The area includes Mount Maunganui to Palm Springs.
Tauranga Mayor Stuart Crosby described the announcement as "tremendous news" for the city. "It's good news for everybody both from individuals through to education to residents who need ultra-fast broadband to do their business or in their general lifestyle."
Mr Crosby said the arrival of ultra fast broadband (UFB) would improve the competitiveness of Western Bay businesses.
"Ultra fast broadband is not a luxury, it has become an essential tool," he said.
Bay of Plenty Regional Council chairman John Cronin said UFB would change the way the city's residents, businesses and schools operate.
"In the home it will open up opportunities for television over the internet and work-at-home choices. In businesses cloud computing and other innovations that will create competitive advantages; and health and education applications within our schools and hospitals will significantly improve their service offerings."
Need a Nerd Tauranga branch's chief nerd Paul Logan said the arrival of UFB would mean the ability to watch online streaming television. "Expats from the UK could watch particular channels," he said.
It would also make it easier to download movies and music. For businesses, Mr Logan said it would improve the clarity of virtual conferencing.
"It's very encouraging if the pricing plans are reasonable."
He said larger amounts of data would be able to be sent more efficiently both nationally and internationally.
"It just brings the world a lot closer. It's step one for the growth of the future."
Tauranga Chamber of Commerce chief executive Max Mason said the roll-out would be good news to Tauranga businesses that use large amounts of bandwidth, especially those working with video, audio and "big databases".
Organisations working in research and development, such as the University of Waikato, would also benefit.
"There will be a much freer flow of information and this will allow businesses to work more efficiently and productively."
Wendy McGowan of Rural Women New Zealand said the impact of UFB would be "huge" for people who live rurally.
"Rural farms are businesses. Sending to accountants, getting information back from the bank, the whole works [will be easier]."
Mrs McGowan, who is national councillor for the region which includes Tauranga and lives between Tauranga and Rotorua, said UFB would make the world more accessible for rural people.
The project to roll out UFB throughout New Zealand is being managed by Crown Fibre Holdings Limited, which has been established to manage the Government's $1.5 billion investment in the infrastructure.
Fibre will be laid out in Whangarei, Hamilton, Cambridge, Te Awamutu, Tauranga, New Plymouth, Wanganui, Hawera and Tokoroa by the end of 2015.
The UFB Initiative will see 75 per cent coverage of ultra-fast broadband across New Zealand by 2019.
Minister for Communications and Information Technology Steven Joyce says the availability of ultra-fast broadband is a key part of the Government's economic growth agenda.
Wholesale household prices will start at $40 or less per month for an entry level product and $60 per month for the 100 megabit product. There are no connection charges for households.
The company has a mandate to provide at least 75 per cent of New Zealanders with access to internet services at speeds of at least 100Mbps (downstream) and 50Mbps (upstream), while enabling providers to deliver high quality, reliable services.
Ultra fast broadband: the benefits for Tauranga
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