A dispute between the Niue government and the Internet Users Society has seen Telecom cut connections.
The head of Niue Telecom and the Telecommunications Minister, Toke Talagi, have both claimed that the society was breaching the law by running a wireless system in Alofi without a licence.
However the User's Society says the wireless service is exempt from licencing under the local Communciations Act.
The severing of connections between the main office and the server building closed the Internet Cafe and free Internet services to the local community in the area have also been closed down.
The service had been given 48 hours to apply for a licence and the head of Telecom had said the fee would be based on losses suffered by the government because of wireless connections.