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Work to connect central Oamaru to UFB is expected to be completed in the next seven months, with the north end (east of Thames St and north of Weir St) expected to be connected by July 2014.
However, the area around Avon, Tamar, Perth and Selwyn Sts does not yet have a completion date.
Chorus network build general manager Chris Dyhrberg said the rollout would constitute a ''massive programme of work'' which would also connect eight local schools by the end of 2015.
''Today we've taken the first step towards Oamaru's fibre rollout and we're eager to work with partners, local council and community groups to extend our network to even more suburbs in the coming years.''
Waitaki MP Jacqui Dean said she was particularly thrilled that Oamaru Intermediate School and Pembroke School would be the first to be connected to UFB.
She said the rollout was good news for the town's education system and would be of ''significant'' benefit to the local economy.
Waitaki Mayor Alex Familton said UFB would give Oamaru advantages it needed to ensure its economy faced up to and increasingly competitive world.