Plans to introduce ultrafast broadband (UFB) in Gore and Mataura by 2019 have been welcomed by the district's mayor and business leaders.
Last week Chorus announced its telecommunications fibre network would include urban homes and businesses in Gore and Mataura by the end of 2019.
The two towns were not part of the Government's ultrafast broadband or rural broadband initiative (RBI), but were included as part of the network planning Chorus undertook to build a UFB proposal.
Gore Mayor Tracy Hicks said there had been real potential for the lack of UFB to "stifle economic opportunities" in the district.
"It is really great news and I welcome the fact that they've seen the need for ultrafast broadband in both Gore and Mataura."
The news came within days of the council writing to Information Communications and Technology Minister Amy Adams raising concerns about being left out of the UFB launch.
"Ultrafast broadband is going to be absolutely vital. We were concerned as a council that we would miss out and become uncompetitive with other towns and cities," she said.
Southland Chamber of Commerce chief executive Richard Hay said the announcement was a "really positive step and will certainly be a boost for businesses in the area, [but] waiting seven years is not keeping us in line with other countries".
Chorus chief executive Mark Ratcliffe said the existing network and the anticipated future demand in these areas meant Chorus saw "merit" in extending its fibre network even further in these particular areas.
Chorus will build upon its existing 7km fibre network in Gore and Mataura and use the same deployment principles being used in the official ultrafast broadband areas to keep the network consistent.
An online map on the Chorus website shows the Gore and Mataura network deployment area, allowing local residents to find out if their home or business will be in reach of the new optical fibre network.