The Government would invest $270million to roll out ultra-fast broadband (UFB) to 190 more small towns and extend broadband to another 74,000 households and businesses.
A total of $140million would be spent extending rural coverage of the RBI to the extra 74,000 businesses and delivering mobile coverage on 1000km of rural highways and more than 100 tourist areas through the mobile black spot fund.
''We want to ensure that some of our biggest sectors that operate in rural New Zealand - such as agriculture and tourism - can benefit from the productivity improvements that better connectivity offers,'' Mr Bridges said.
The mobile black spot fund would improve public safety and visitor experiences by providing greater mobile coverage on stretches of state highway and in tourism locations where no coverage currently existed.
Data released by Mr Bridges showed UFB would be rolled out to an additional 22 towns in Otago, and about 7000 more Otago households and businesses.
The entire UFB in Otago would be completed by the end of 2022, providing more than 85,000 Otago households and businesses with faster internet.
The Government's total investment in Otago and Southland UFB connectivity was $152.4million.
A spokeswoman for the Ranfurly Visitor Centre welcomed the news. Tourists to the region were constantly complaining about the lack of fast broadband in the Maniototo town.
''They are trying to open their electronic tickets and complaining how long it takes. This is exactly what we need.''
Under the second round of the RBI, a further 4418 households and businesses in Otago would receive new rural broadband coverage, Mr Bridges said.
Exact coverage areas were to be determined. Crown Fibre Holdings would work with providers to carry out more detailed planning.
The service is to be partly delivered by a network of wireless internet service providers, including Dunedin company Unifone.
Unifone contracts manager Glenn Hutton said the announcement was a huge step forward for rural residents, farmers and others operating businesses in remote areas.
''We've got people running huge businesses off unstable and expensive broadband connections. This announcement means we can get on with providing services from our own wireless broadband network.
Unifone had been awarded the contracts by Crown Fibre Holdings to cover rural end users throughout greater Otago.
Locations included Romahapa, Clutha Valley, Tuapeka, Mahinerangi, Waipori, Otago Peninsula, East Otago, Macraes Flat and Maniototo.
The inclusion of Maniototo was particularly pleasing, Mr Hutton said.
Unifone would invest heavily in the area, in addition to the service Crown Fibre Holdings had contracted the company to provide.
''The Maniototo is a significant area for us to move into, as it neighbours our existing area and has pockets of underservice we are willing and able to address.''
Mr Bridges said five state highways in Otago would receive new mobile coverage - about 120km would be covered across State Highways 6, 8, 85, 87 and 90.
The Otago region would receive new mobile coverage for 10 tourism areas.
The were: Beaumont, Clutha Gold Trail, Blue Pool, Haast Pass Rd; entrances and exits to Greenstone Track; Lindis Valley; Makarora; Moa Creek; Mou Whao Island, Lake Wanaka; Taieri Mouth; Trotters Gorge; Waitaki Lakes area.
In Southland, 13 additional towns and one fringe area would receive UFB, about 4500 households and businesses.
The mobile back spot fund would provide new mobile coverage around the Homer Tunnel; Curio Bay; Dipton; entrances and exits to Milford Track and Routeburn Track; Knobs Flat; Milford Sound; Niagara Southern Scenic Route; Porpoise Bay; Te Anau Downs.
