As well as enhancing existing networks, Mr Smith says it will provide the funds to enable many WISPA companies to roll out more rural fibre to enhance capabilities right through the networks.
Mr Clark says the pandemic has shown reliable internet is critical to enable people to be able to work, learn and socialise from home.
"Having been through lockdowns, it's clear some rural networks had real trouble adapting to the extra usage."
As part of the initiative, 13 private sector contractors have signed contracts with Crown Infrastructure Partners to carry out the work. The programme will be funded with the $47m from the Government's Covid Response and Recovery Fund.
"Government's actions to protect lives and livelihoods throughout this pandemic has proven to be the best economic decision. However, today's announcement will further help us secure our economic recovery," Mr Clark says.
"With these upgrades, rural businesses will have the tools to be more innovative and productive. We can also improve health and safety for New Zealanders and their families through remote health consultations, facilitate remote learning and help maintain social and family connections.
"For those businesses, farms, marae, and households that aren't captured by current rural broadband initiatives, such as the Ultra-Fast Broadband programme, the initiative launched today will be of great benefit."
At the completion of all current connectivity initiatives in 2024, 99.8 per cent of New Zealanders will have seen an improvement to their broadband services.