Phone lines to 900 homes and businesses in Porirua, near Wellington, are slowly being restored after an outage lasting almost two days.
Telecom says engineers have been working round the clock since services went down about 1.30pm on Tuesday.
It says a contractor caused the outage, which has affected businesses, including New Zealand Post, the TAB and Price Busters.
Porirua Chamber of Commerce executive director Simon Calvert, says about 100 businesses in the area were affected.
Telecom says account holders should talk to their service provider about compensation.
The last 100 phone lines are due to be reconnected by Thursday evening.