A satellite broadband service for an isolated farming community in the central North Island covering about 40,000ha is being launched by internet company ICONZ.
It is providing broadband to the Atihau-Whanganui Incorporation, which manages about eight beef and sheep farm stations around Wanganui.
ICONZ spokesman Matthew Sollis said Telecom's fixed-line
broadband service did not cover the community and the company had tapped into the high demand for broadband.
Other companies had tried to deliver broadband wirelessly to Atihau but had pulled out.
Sollis said although it could be difficult making a profit providing broadband, the service was economical because of the large customer base in the area
"The profit margins are slim but it is more sustainable. The more bandwidth you buy, the cheaper rates you can get it for. If you have a large customer base, the economies of scale come in."
ICONZ delivered the connection through broadband by reselling satellite bandwidth from the Thailand-based Shin Star satellite and connecting it to dishes it had installed on farms.
ICONZ satellite broadband service was $99 a month for a download speed of 256 kilobits for 1 gigabyte of data - about $50 more expensive then equivalent plans offered by Telecom.
Sollis said the satellite service had larger maintenance costs and the Atihau-managed community was prepared to pay extra to receive a "much-needed service".
Telecom's phone network only reached a few of the households with most people using satellite and cell phones.
Chief operating officer Sean Weekes said his company was proud to deliver a service traditionally unavailable to people in such isolated locations.
Although, the company focused on the IT business market, it also provided satellite broadband to 70 schools in isolated areas around the country, including the Great Barrier and Chatham islands.
The Atihau-Whanganui Incorporation was established in 1970 and has about about 6500 shareholders.
