Communications and Information Technology Minister Stephen Joyce has tweaked the ultra-fast broadband plan.
Following industry feedback, Mr Joyce says he'll let local fibre companies provide Layer 2 services as well as Layer 1 on the fibre network.
Layer 1 is the fibre cable in the ground or strung over poles, while Layer 2 lets the supplier add the electronics at both ends of the fibre and means retail providers can use it immediately and supply products to end users.
The Telecommunications Users Association supports the change, saying it will benefit areas where there isn't a high concentration of businesses and people, and be a cheaper option for service providers.
Mr Joyce will also give local fibre companies a regulatory holiday while the market establishes itself, and the association says it'll be watching the process carefully to ensure it's not abused.