New Plymouth, Hamilton, Tauranga, Whangarei and Wanganui will be among the first cities hooked up to ultrafast broadband under the Government's $1.35 billion scheme.

Communications Minister Steven Joyce said Crown Fibre had signed deals with lines firm Northpower and Ultra Fast Fibre - owned by lines company Wel Networks - to begin laying fibre.

Northpower would begin deploying fibre in Whangarei before Christmas, while Ultra Fast Fibre would begin early next year.

Cambridge, Te Awamutu, Hawera and Tokoroa would also receive ultrafast fibre under the deals.

The two companies will wholesale fibre connections to internet retailers. Mr Joyce said wholesale prices would start at $40 or less per month for an "entry level product", and $60 per month for a 100 megabit per second connection.

Crown Fibre would announce shortly those parties it would negotiate with to lay fibre throughout the rest of the country, he said.