Chorus is launching mass market very fast broadband (VDSL) on its existing copper network at the same price as the current regular broadband service.
The technology can provide much faster download and upload speeds than the existing ADSL2-plus system.
The telecommunications network firm says it will offer VDSL from 7 June to retail service providers at the same current wholesale price.
Providers will then market their own plans and pricing to households and businesses.
Chorus corporate affairs manager Ian Bonnar says the firm is launching the technology at little cost and is unlikely to make money from the product.
He says the main aim is to provide a stepping stone toward ultra fast fibre broadband which will not be available in some areas until 2019.
Mr Bonnar says the product is now part of the copper-based broadband charges that are currently under review by the Commerce Commission.
In December, the watchdog proposed cutting the charges, causing Chorus' share price to slump.
Meanwhile, the Telecommunications Users Association says VDSL's upload and download speeds will be 20 times faster than existing copper network connections but people may have to pay more for extra data.