The Government has announced $270 million to roll out ultra-fast broadband to 74,000 rural households and businesses in 190 more towns.

Prime Minister Bill English made the announcement in Hamilton on Wednesday, where he is also on the campaign trail for National.

The Government was also bringing forward the completion of the Ultra-Broadband network forward by two years – it was now expected to be completed by 2022.

GETTY Communications Minister Simon Bridges says there will be increased mobile coverage on stretches of state highway and in tourism locations where no coverage currently exists.

The investment was made up of $130m to extend ultra-fast broadband to the 60,000 households and businesses in the new towns and complete the network.

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The other $140m was to extend rural coverage and faster internet to 74,000 rural households and businesses, and to deliver mobile coverage on 1000 kilometres of rural highways.

UFB uses fibre optic cables to deliver broadband to households and businesses. It is most suitable and cost effective in urban areas with higher dwelling and business densities.

Communications Minister Simon Bridges said the Government programme began in 2010, with the original goal of connecting 34 towns to fibre right to their properties.

"Earlier this year we expanded it to 200 more towns and today's announcement will bring us to 390."

Because UFB was not feasible for every rural community, a separate rural broadband initiative (RBI) provided faster internet to homes and businesses outside UFB areas through a combination of fixed lines upgrades and new fixed wireless coverage.

More than 300,000 rural homes and businesses already had access to improved broadband under the first phase of RBI which was completed in June last year.

Wednesday's funding announcement was on top of $150m already allocated for rural broadband and mobile coverage.

The Mobile Black Spot Fund would provide increased mobile coverage on stretches of state highway and in tourism locations where no coverage currently existed.

That included State Highway 6 on the West Coast and State Highway 1 in the Far North, Bridges said.

"Better connectivity in these remote areas will enhance visitor experiences at some of the countries tourist hotspots, such as Milford Sound, Cape Reinga and Bethells Beach."

More than 450 new towers would be constructed, in addition to the 150 already built, to increase the coverage.

"Once complete, New Zealand will be in the top five countries in the OECD for access to high speed broadband. Considering that in 2011 we were placed 26th with very little connectivity that will be a fantastic achievement," Bridges said.

"By 2022, 87 per cent of New Zealanders will have access to UFB and 99 per cent will have access to high speed internet."