Vodafone is extending its 3G broadband network to reach 97 percent of New Zealanders by April 2010, from the current 63 percent of the population.
The mobile phone company is investing a total of $500 million in its 3G -- third generation -- infrastructure.
"This means broadband will be available on customers' mobiles and it can be used as a cost effective home solution especially in areas where no landline-based broadband is available," said Vodafone corporate affairs general manager Tom Chignell.
Vodafone is improving the downlink speed to 7.2 megabits per second (Mbps) and in future, peak downlink speeds will range up to 28.8 Mbps and uplink speeds will be up to 11.5 Mbps using High Speed Packet Access (HSPA), the company said.
HSPA is a set of technological standards allowing mobile operators to offer download and upload speeds similar to those offered over broadband lines in the home. It is also one mechanism to bring faster broadband speeds to rural New Zealand, said Communications and Information Technology Minister David Cunliffe.
To reach customers in provincial and rural regions, it is more cost-effective to use HSPA in the 900 MHz band rather than the 2100 MHz band that has been used previously in urban areas.
"While many countries are still struggling with the removal of outdated restrictions on the use of lower frequency bands for HSPA, the flexible spectrum regulatory arrangements in New Zealand mean that the benefits of this technology can be delivered to New Zealanders now," Mr Cunliffe said.
The Government has committed $350 million over five years to speed up the roll out of faster broadband.