The Dunedin City Council is to develop a new digital communications strategy to promote the spread of high-speed broadband services in the city.
The strategy aimed to position the city to take best advantage of the Government's plan for joint ventures to develop the country's broadband capabilities, council economic development unit manager Peter Harris said.
His views were presented in a report to the council's economic development committee earlier this week.
The initiative followed the Government's decision to scrap the $340 million broadband investment fund in February, after its suspension at the time of last year's general election.
The axing of the fund had ended Dunedin City Council-owned Aurora's hopes of obtaining a $3 million slice of the fund it applied for late last year.
The company had been working on a 39km fibre network linking the city's municipal buildings, key businesses, schools, University of Otago and Dunedin Hospital.
A smaller pilot project was already operational, trading as Flute Network.
Mr Harris told councillors the scrapping of the investment fund had placed the development of the wider network in "a bit of a holding pattern" until the Government's plans were unveiled fully later this year.
The new strategy would move beyond development of the fibre broadband network to include wider digital initiatives, from upgrading the council's website to managing the growth of new cellphone towers providing wireless broadband services, his report said.
When it came to central government support, it was clear "those regions with clear strategies are likely to be the ones that receive the funding first", he said.
"This was part of the reason why Dunedin missed out on funding during the term of the last government," he said.
Councillors voted to begin work on the new strategy, with a new steering group to examine the strategy's brief and scope before reporting back to councillors.