"Palmerston North has a good customer service centre reputation," he said. "With Unlimited Internet's arrival, we now have 27 Customer Service Centres, employing about 1200 staff and increasing growth by around 10 per cent year on year."
Unlimited Internet chief executive Ben Simpson said, in comparison, staff turnover in Auckland was high and he was looking forward to the quality of call centre staff the central region offered.
"We're establishing a presence in Palmerston North and we're looking to attract passionate locals to the jobs on offer."
With more than 60 ISP providers in Auckland, the congested market and high overall costs also contributed to his decision to set up in a smaller region.
"Office space is expensive, hourly rates are increasing as is the cost of living in Auckland. This all adds to increasing costs of doing business."
Unlimited Internet general manager Jessica Simpson said the company was looking to hire more people at the service centre in Queen St by the end of the year.
"The customer service centre is operational now. I'm expecting we'll grow by 20 more within this year and have space for many more."