Walker Wireless and Vodafone have been selected to provide high-speed internet services in Southland.
The joint bid beat proposals from a Telecom-Broadcast Communications consortium, and from Connections Incorporated, a sister company to Wellington internet service provider Actrix.
The proposal meets the requirements for Project Probe, the Government-funded programme toget high-speed internet to every school.
It is a major win for Walker Wireless, and should improve its chances of winning other regional bids.
It is shortlisted in Northland and Wairarapa.
Venture Southland strategic projects manager Steve Canny said the network roll-out should start by about April next year.
The price to consumers "will compare favourably to Jetstream" - Telecom's hard-wired fast internet product.
"The principle is the communication service will provide not only internet access, it will provide a minimum of two voice telephony services and the opportunity for roving access to broadband and high-speed internet services," Canny said.
He said the system would cover about 95 per cent of the Southland community.
Walker Wireless regional development manager Lindsay Cowley said wireless transmission equipment would be located on Vodafone's cellphone towers, while customers would use palm-sized wireless modems from California-based IP Wireless.
Russell Stanners, Vodafone director of business markets, said the mobile phone company saw its role as selling the solution to the end customer.
"Walker Wireless is providing the network, we are providing the service," Stanners said.
He said it would allow Vodafone to offer more wireless data services, and would give customers more choice about the sort of voice service they want.
"This allows us to overcome the last mile issue and get broadband in, bypassing the local loop," he said.
"It also demonstrates the Government strategy of stimulating the regional broadband process is positive. It has led to innovative solutions rather than one provider with one offering."
